Confident Melrose predicts strong year

18th Nov 2010 11:10

Engineering conglomerate Melrose reckons the year will end strongly as news from its businesses overall is "most encouraging" and "marginally" ahead of expectations."The recovery in our earlier cycle businesses is extending to some of our later cycle businesses," the firm said. "This, together with the extensive operational and efficiency gains achieved gives us confidence that the year will end strongly and provide a good base for 2011."In an update for the period since 1 July, Melrose said revenue visibility remains healthy on the back of increasing orders. The energy business is expected to do well this year, while operating profit and return on sales are progressing well at the lifting products unit.Dynacast, which makes zinc, magnesium and aluminium alloys, should deliver operating profit for the second half "broadly similar" to that reported for the first six months.But there are reports in today's Telegraph that prized asset Dynacast is up for sale.Melrose is said to be after more than £350m, which broker Panmure Gordon thinks would be a fair valuation. It expects the majority of any proceeds to be distributed to shareholders.