Melrose Industries Share Discussion Threads

[brexitplus] 24/10/2018 17:34

REALLY IMPRESSIVE And last but not least, released today. Note comment on replacement part which means not having to hold stock thus reducing inventory in the accounts.


"GKN Driveline to increase adoption of Stratasys FDM 3D printing technology
Assembly tools and replacement parts are the applications being targeted by GKN Driveline.

Using customised Stratasys 3D printedtools, GKN Driveline Florence has reduced tool production time from almost a week to under one day, enabling them to provide final parts to customers faster than ever.

Stratasys has announced engineering firm GKN’s Driveline Florence division is taking on more of its Fused Deposition Modelling (FDM) 3D printing technology to replace several traditional manufacturing processes.

It comes after GKN Driveline Florence enjoyed a 70% reduction in lead times after its initial adoption of the Stratasys Fortus 450mc machine to develop customised assembly tools. The team has also been printing replacement parts for manufacturing equipment on-demand, as the division sought to enhance the service it provides for its customers and become less dependent on part suppliers.

Car manufacturers across the globe benefit from GKN Driveline’s automotive driveline systems. Some of the most notable customers include Fiat Chrysler Automobiles Group, and luxury vehicle brands, Maserati and Ferrari. Since adopting the Fortus 450mc, complex assembly tools have been produced in ‘a fraction of the time’ compared to conventional methods, which has meant feasibility tests have been conducted sooner and their deployment on the factory floor has happened significantly faster.

[brexitplus] 24/10/2018 17:27

DELPHI and GKN AEROSPACE

As I said last week I have had brief chats with managers at Delphi Technologies and GKN Aerospace. Both contacts are middle managers.

First at Delphi Technologies, the resignation of Liam Butterworth as CEO came as a complete surprise. My contact says he is very impressive, having worked his way up and has lots of expertise in powertrains, and sales and marketing. Ideal for Melrose. Also he was heavily involved in the split of Delphi into Delphi Technologies and Aptiv.

His comments when appointed CEO of Delphi Technologies are interesting

““We are extremely well positioned to assist our customers worldwide to meet increasing regulatory demands around fuel economy and emissions,” said Liam Butterworth, newly appointed chief executive officer, Delphi Technologies which has 20,000 staff world-wide.

“We are paving the way towards full electrification with our comprehensive technology portfolio, best-in-class cost structure and a balanced geographic manufacturing footprint with 20 manufacturing facilities and 12 technical centres on three continents.”

Delphi Technologies’ 5,000 engineers will focus on solutions for electric vehicles and internal combustion engines for both the passenger car and commercial vehicle markets, while also meeting future demands for vehicle repair through its extensive global aftermarket network.”


The person he put me in touch with at GKN Aerospace said that when Melrose first bid for GKN everyone was pretty apprehensive because of the negative publicity in the media. But the reality is completely different and the company is much more pro-active now that it has its future in its own hands, and investment isn't decided by the old GKN Board. He says that Melrose are very positive with a focus on being the absolute best in the industry through both investment in Advanced Manufacturing Innovation and the application of the innovation. Additive Manufacture was mentioned a a big positive, and the fact that GKN Aerospace is recruiting, not making people redundant. All-in-all he is very positive.

If you look at the new GKN website these aspects are to the fore, in particular the emphasis on ePowertrain and Formula E, the latter developing technology which will transfer to the mass market. Its a bit like many of things we take for granted today, for example the Internet and Radar, originally being developed for military use.

[brexitplus] 24/10/2018 17:24

GKN Driveline News Release

SDS OPENS NEW TECHNICAL CENTRE IN CHINA AND MARKS 30TH ANNIVERSARY OF GKN AUTOMOTIVE JOINT VENTURE

New R&D facility will work on localising GKN Automotive CVJ, AWD and eDrive technologies

First development will be Multimode eTransmission, for a Chinese automaker

300 new jobs created, working across CVJ, AWD and eDrive systems

Official opening also marks 30th anniversary of GKN SDS joint venture

New eDrive factory in China opening soon to meet higher demand from OEMs

GKN Automotive’s Chinese joint venture, Shanghai GKN HUAYU Driveline Systems (SDS), has officially opened a new Technical Centre in the city’s Kangqiao suburb that will specialise in research and development of its state-of-the-art technologies for constant velocity joint (CVJ), All-Wheel Drive (AWD) and eDrive systems. The opening of the Technical Centre also marks 30 years since GKN established its automotive joint venture in China, the first Tier One automotive supplier to do so.

Through SDS, GKN Automotive is expanding the engineering development resource in the region at the newly-constructed facility on the outskirts of Shanghai. More than 300 jobs have been created at the facility, initially to work with customers in China on local applications of GKN Automotive’s existing eDrive, AWD and CVJ technologies. In the future, the SDS Technical Centre will have the expertise and resources to be the project leader for global development of new products.

Substantially greater physical space for R&D will be met by a significant increase in the headcount of specialist engineers, boosting numbers by nearly 50% over the next three years. It is anticipated that the new, cutting-edge Technical Centre will prove to be an attractive proposition for engineering talent in China, as SDS seeks to attract the very best graduates in their fields to continue its success in the market.

John McLuskie, President of GKN Automotive China, said: “The official opening of the new Technical Centre in Shanghai represents another step in a major investment programme in what is currently the most significant market for eDrive. Growth of vehicle electrification is accelerating faster in China than anywhere else in the world. GKN Driveline established the first Tier One joint venture of its kind in the country 30 years ago, and SDS is now set to play a leading role in the next era of China’s automotive industry.”

SDS has already built a market-leading position in CVJs and driveshafts, and it continues to innovate and introduce advanced technologies. The expansion of SDS’s capabilities for GKN Automotive’s eDrive technologies will meet higher demand from new and existing OEM clients, with development and manufacturing initially serving a raft of new business wins – for electrified powertrains in particular. Engineers at SDS will have the opportunity to contribute to some of the most advanced eDrive systems in the world, including bespoke eAxle technologies that will be exported to clients’ production facilities in Europe.

The joint venture is now clearly targeting market leadership of eDrive systems in China, and its significant investment in new production and development facilities will enable the business to take advantage of the rapid acceleration in demand for electrified drivelines.

Production of electric and hybrid vehicles in China is forecast to grow by more than 400% by 2025, to just under four million vehicles per year*. The scale of the SDS eDrive production hub in China will increase in parallel over the next seven years, with additional supply agreements set to commence for a range of domestic and international car manufacturers. GKN Automotive forecasts that SDS’s eDrive production will reach one million units annually by 2025.

CELEBRATING 30 YEARS IN CHINA

GKN Driveline became the first Tier One automotive supplier to establish a joint venture in China in 1988, bringing the latest technologies in driveshafts into the market and building a leading position in CVJ systems. The introduction of eDrive technology builds on this proven history of successfully implementing new driveline technologies into China.

In 2013, GKN expanded its relationship with SDS to introduce the production of torque management technologies and all-wheel drive systems. GKN became the first Tier One supplier to design, develop and manufacture a complete all-wheel drive system in China in 2015 on the MG GS, and to date has produced all-wheel drive systems across nine separate programmes for a range of domestic and international automakers.

Within months, SDS will also open a newly-constructed, state-of-the-art eDrive plant in Pinghu, Zhejiang Province, which will mark the beginning of a significant increase in manufacturing capacity for the joint venture.

[meanwhile] 24/10/2018 17:22

getting & Yertiz,

I have been reading a book to my grandson over the last few days which I would like to recommend to you; it's just above your level of intellect but you should be able to grasp some of the storyline.
It's called "Noddy at the seaside". Big Ears is in there as Noddy's friend.

[brexitplus] 24/10/2018 17:20

GREAT NEWS FOR GKN

Jaguar Land Rover bosses are considering a plan to turn Jaguar into an EV-only brand within the next decade

It is understood that company product planners have produced an outline strategy under which Jaguar’s conventional vehicle range would be phased out over the next five to seven years, to be replaced by fully electric vehicles. 

Under the plans being considered, a full-on luxury electric saloon, replacing the unloved XJ, is expected within two years. It will be a direct competitor for Porsche’s upcoming Taycan, alongside strong-selling cars such as the Tesla Model S. 

Rethought as an electric vehicle, the new XJ will both play to the strengths of the 1967 original by offering segment-leading refinement and ride and look to the future by completely reinventing the classic Jaguar interior. 

It is understood that the new XJ will be a no-holds-barred luxury car in every sense, offering customers a zero-pollution alternative to a Mercedes-Benz S-Class or even a Bentley Flying Spur.

[brexitplus] 24/10/2018 17:19

Mayers

Spoleto is an ideal centre for the type of holiday we enjoy. This trip was very similar to our honeymoon based in Spoleto, 34 years ago, when we were in the city at the same time as the “Festival of the 2 Worlds”. We flew to Rome, spent the Monday there, then took the train to Spoleto. In fact we only used public transport. Train to both Assisi and Perugia, and bus to Montefalco to sample the delicious wine and buy a couple of bottles. Breakfast was at the train station given our early starts. In the end with didn't go to Orvieto but spent lots of time walking the hills around Spoleto. Weather was great as was the food and wine. A week was much too short!!!

[yertiz] 24/10/2018 15:51

".....Yertiz,
Did I say I had lost confidence, or did I say something else?
Did I say I was nursing big losses or did I buy the shares at 95p?
Did I say my wallet was slimmer or have you seen it for yourself?
Don't make silly assumptions."

".....Could you ask your friend yertiz if I'm right in my impression that he doesn't like me very much?"

Pot, kettle, black - or if the cap fits....

Really, MW, you are being a little paranoid or are you just a bit of a snowflake? I hardly know you but I very much doubt you'd fit in with my circle of friends.....thankfully.

Looks like tomorrow will be the day 150p is breached, then where/how low? Lower the better for my buyback but guessing the bottom in today's market environment is not an easy option. 150p isn't a bad target but could go much lower if there's no change in sentiment soon.

[gettingrichslow] 24/10/2018 13:43

Afternoon ryelodge, how's the cycle shop going? Can we have an updated photo of your wallet?

[ryelodge] 24/10/2018 13:33

Director dealing on insider information is a serious criminal offence. Surely the MRO Board, with their eye - wateringly generous compensation, would not risk everything in the desire for yet more?

[essentialinvestor] 24/10/2018 13:15

Oh, you're easily impressed then, as I'm rarely astute ).


Mentioned previously director buys have been a good indicator of value
in MRO over the years, besides the recent NED purchase, nothing on that front atm.

[gettingrichslow] 24/10/2018 13:11

MW, not at all, I've seen posts from Essential elsewhere (e.g. on the DS Smith board etc) and they're always astute posts, quite unlike those you do under your sinister 'hvs' character!

[meanwhile] 24/10/2018 12:55

getting,

Your Fregoli Delusion must be raising its head again here. In your 'Fregoli-like' mind I, or Minerve, must be EssentialInvestor.

With hvs, Mayers, Ryelodge and now EssentialInvestor, each with its own account and email address, your head must be spinning.

[gettingrichslow] 24/10/2018 12:21

Essential, absolutely right, another example is WEIR, £23 in May, £14 now, I've just bought £20k as a long term investment.

[essentialinvestor] 24/10/2018 11:54

6314 is a pretty fair assessment.

One aspect I would add is sector weakness. There have been some savage falls,
SMIN down from near £18 to under £13 over a few months.

[gettingrichslow] 24/10/2018 11:20

MW, you will remember that in April 2018 when we were best of friends (you once even referred to me as a decent, intelligent fellow) I suggested you may want to reconsider your 'all eggs in one basket' share investment strategy. Funny, unexpected things could happen, no matter how solid the investment case appears to be. I think you replied with something about how fat your wallet was, or similar.

[meanwhile] 24/10/2018 10:57

Heading down again; where will it go?

I've seen nothing in the press to explain such a fall, other than evidence for a general downturn in automotives and other market uncertainties, so providing there is no internal sketeton in the cupboard, I think there could be just a little way yet.

I believe it's largely due to what is called by experts, profit-taking. Many might not imagine it but most shareholders are still sitting on profits and the apparent panic is now drawing many out.
Not everyone understands this, some can't even mentally grasp it, but old MRO shareholders (pre the GKN takeover) who held since the Nortek acquisition in 2016 got 90%+ (12 of 13) of their shares at the 95p rights price. Being impatient, they've been taking some of these profits since the September report promised no action in the short term.

Old GKN shareholders, many of who never wanted MRO shares, and who took cash & MRO shares, now have the equivalent of 340p. Not what they could have got a few months ago but enough for them to get out at a price at which they might have been happy to exit GKN if the takeover hadn't happened at all.

Good sense and bad sentiment, I call it.
So until both lots of shareholders see some promise of improvement or disposal action, these profits, a little of which is still in there, will continue to be whittled away.

Of course I could be completely wrong.

[yertiz] 24/10/2018 10:38

Welcome back B+ - you may find this board is a case of the lunatics running the asylum. The MW and M partnership (shepherd and sheep) are continuing with their love-in, the share price is dropping to levels which are hurting MW and he/she/it is now snapping at the slightest provocation with hissy fits galore, poor dear.

150p is ever closer - when the market is fearful, be greedy - exactly my intentions when 150p is breached (maybe today?), I'll be filling my boots.

Looking forward to the reports - hope your consultancy progresses with success.

[brexitplus] 24/10/2018 07:41

Morning all. Have you missed me?

Am currently away doing some consultancy for an former client which is talking up most of my time. Presentation to the Board today, hopefully leading to Stage 2, so I’ll have time to report back on my contact with Delphi and GKN Aerospace, and Spoleto later when I get home.

Must go and pack. A while since I was away on business but the remuneration is excellent. Will be able to take Mrs Brexitplus out for a slap-up meal (not Bill’s).

[meanwhile] 23/10/2018 22:50

Yes, getting, I got across to you in the end what was quite simple maths. But it is always difficult to instill even simple concepts into the mind of an imbecile.
I think the reason my earlier attempts failed was that you were hung up by the belief that in order to get the rights you needed to buy shares after the rights were announced and allotted to the shares.
It is this lack of understanding that contributes to your present condition of goingdownhillfast.

Now, for God’s sake, clear off and stop wasting the time of Minerve and myself.

[gettingrichslow] 23/10/2018 22:11

Meanwhile, well I have to hand it to you, you got there in the end! I think that's the 8th or 9th attempt you've had to articulate what the actual situation was with the rights issue and you're very nearly there, only one sentence is now completely wrong, so I think we can both agree that's real progress. You'll thank me one day for picking you up on all your errors because it's important you understand how these things work. Hugs and kisses, Getting.

[meanwhile] 23/10/2018 20:36

getting,

Let me tell you how the MRO rights issue for Nortek worked.
Holders of Melrose shares before the ex rights date, I think July/August 2016, were offered 12 new shares at 95p for every share held. If you bought MRO a year earlier, in mid 2015, as I did, they were trading around 250p and I paid 255p for mine.
When I took up the rights issue in full I had multiples of one old share (bought at 255p) & 12 new shares (bought at 95p). The average purchase price of shares held was then 107p.
12/13 of an investors holding were then new shares bought at 95p. Holders from that rights issue are still sitting on good profits, at the current 158p, although much less than a few months ago. Maybe many are selling up now, taking profits, partly accounting for the fall.

All that rubbish you gave me last week was for someone who'd bought the shares with rights, which I recall rose from 550p and 800p. People made money doing that but people made a hell of a lot more if they had bought around 250p a year earlier. There was also a good profit to be made from selling some shares at 550-800 to raise cash to buy the rights shares on the remainder.

I know this is difficult for you to understand but it is not based on your idiot theory but on fact, money paid out and money coming in.
When I sold at 237p in May 2018 to buy the shop, the shares were sold at a profit of 121%.
Now the reasons why you and that comparable imbecile Yertiz don't understand are (1) that you are too stupid to grasp the maths and (2) that you don't want to admit that some others have made money.
This also explains your dislike of Minerve, who has clearly been very successful.
As I pointed out to you last week, you suffer from schadenfreude syndrome, amongst other problems.

Now clear off.

[gettingrichslow] 23/10/2018 19:20

"How is the love-in with Minerve going?"

I've got a horrible mental image now of Minerve and Meanwhile like Morecambe and Wise wearing stripy pyjamas and lying side by side in a double bed, with Minerve holding his bottle of Absinthe and trying to explain to Meanwhile how rights issues work!