(Reuters) - Turnaround specialist Melrose Industries Plc (L:MRON) said on Tuesday that a strike at U.S. automaker General Motors (N:GM) dented sales at its automotive and powder metallurgy units for four months.
The car parts division of the GKN (LON:GKN) business that Melrose bought last year counts Volkswagen (DE:VOWG_p), GM and Ford among its customers. It also said initial steps to reduce working capital in GKN were being implemented.
The UK-based company, which also makes components for Boeing (NYSE:BA), Rolls-Royce (LON:RR), among others, said sales in powder metallurgy and automotive fell 13% and 5% respectively for the four months ended Oct. 31, while aerospace grew 5%.
Melrose said it was trading in line with the board's view for the year.
Several auto parts makers have been impacted by the 40-day strike at GM, which began on Sept. 16 over higher pay, greater job security, a bigger share of profit and protection of healthcare benefits.
Analysts at Investec assume the strike has reduced Melrose's revenue by about 50 million pounds ($64.80 million)and profit between 10 million and 15 million pounds.
In 2018, Melrose reported revenue of 12.25 billion pounds, including GKN's results, and pre-tax profit of 886 million pounds.