Melrose Still Sees H1 Trading In Line With Its View, Completes Nortek Air Mgmt. Sale

British manufacturing company Melrose Industries (MRO.L) Tuesday, ahead of its half year ending June 30, said it continues to trade in line with expectations and that it completed the sale of Nortek Air Management Division.

For the half year ending June 30, the Group said it is witnessing recovery in the automotive sector for both the Automotive and Powder Metallurgy Divisions, albeit currently tempered by the impact of the global semi-conductor shortage. The Group also anticipates some encouraging signs for the Aerospace Division, with a start of a recovery for that sector in sight.

Melrose said it completed the 2.62 billion pounds disposal of its Nortek Air Management Division to Madison Industries and the net proceeds from the sale will be used to fund the Proposed Return of Capital and for GKN UK defined benefit pension schemes.

The Group confirmed the proposed return of about 730 million pounds in cash to Shareholders, equivalent to 15 pence per Existing Ordinary Share. "The Proposed Return of Capital and Share Consolidation will require approval from Shareholders at a general meeting, together with a court hearing to confirm the requisite Reduction of Capital", Melrose said.

In addition, the Group also revealed the sale of Brush last week for a net cash proceeds of 100 million pounds. Brush is the final business to be sold from the FKI acquisition in 2008, the Group noted.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
General Electric Co. reported Tuesday narrower net loss in its second quarter with strong growth in revenues. The company also generated strong order growth. Looking ahead, the company reiterated its outlook for adjusted earnings per share, while increased its 2021 outlook for Industrial free cash flow range. In pre-market activity on NYSE, GE shares were gaining around 4 percent. The U.S. Food and Drug Administration announced recall of Old Soul's Farms LLC's certain leafy green products as well as Excalibur Seasoning Co.'s Haen Meats Seasoning Blend, citing potential contamination with Listeria monocytogenes, an organism. Consumption of food contaminated with L. monocytogenes can cause listeriosis, a serious infection and sometimes fatal infections. Tobacco giant Philip Morris International plans to stop selling cigarettes in the United Kingdom in the next decade, according to its CEO Jacek Olczak. In an interview with the Daily Mail Sunday, Olczak said the sales of the company's most popular product Marlboro cigarettes will also be stopped. The move is said to be part of the company's plan to phase out traditional tobacco products.
Follow RTT