(Alliance News) - Melrose Industries PLC said Thursday sales in the four months to April 30 were down 20% year on year.
In the period from January to mid-March, Melrose said trading was in line with internal expectations. But the Covid-19 pandemic caused "significant disruption" thereafter and forced many factories to shut or remain only partially open.
In Aerospace, sales were down 8% year-on-year in the four-month period.
"Actions have been taken to reduce the cost base of this division and detailed plans are being drawn up to position the business appropriately for future demand," Melrose said.
In Automotive & Powder Metallurgy, sales slipped 31% as factories in Europe and North America have largely been shut since mid-March.
Nortek Air Management & Other Industrial sales dropped 12%.
Melrose said its headroom at the end of April was about GBP1.1 billion, and this is not expected to change over the remainder of the first half.
Chief Executive Simon Peckham said: "Our divisional management teams and head office employees have responded brilliantly to these unparalleled circumstances, which are likely to remain challenging for a while.
"During the next few months we will put in place plans to position our businesses to achieve their future potential in different market conditions. Melrose has a track record of managing its businesses successfully in all market environments and crucially our recent cash generation performance shows we have been able to maintain the strength of the balance sheet to position the group's businesses in the best way for the future."
Also, Melrose has asked Executive Vice Chair David Roper to delay his retirement.
Shares in Melrose Industries were 1.2% lower in London on Thursday mid-morning at 97.01 pence.
By Paul McGowan; paulmcgowan@alliancenews.com
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Melrose (MRO)