March 4, 2021, 2:25 a.m. EST

Melrose Industries sees rough year for aerospace

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By Anthony O. Goriainoff

Melrose Industries PLC on Thursday said that it swung to a 2020 pretax loss as revenue fell, and that it doesn't expect the civil-aerospace market to recover in 2021.

The London-listed, turnaround specialist made a pretax loss of 535 million pounds ($746.3 million) compared with a profit GBP106 million in 2019, and a consensus loss of GBP654.1 million, taken from FactSet and based on five analysts' forecasts.

Adjusted pretax profit--one of the company's preferred metrics which strips out exceptional and other one-off items--was GBP153 million compared with GBP889 million the year prior, and consensus of GBP91.2 million, taken from FactSet and based on six analysts' estimates.

Revenue fell to GBP8.77 billion from GBP10.97 billion the year before.

The board declared a final dividend of 0.75 pence.

"The aerospace sector has been particularly hard hit and a recovery looks some way off while global travel restrictions remain. Nonetheless, GKN Aerospace remains a very good business with a growing Defense division and is taking the improvement steps to ensure it is well positioned for when the recovery does emerge," the company said.

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