Melrose Industries Share Discussion Threads

[gettingrichslow] 15/11/2018 16:54

Meanwhile, I'm just approaching the McDonalds in York - is it Jamaican Chicken or McChicken please?

[meanwhile] 15/11/2018 16:30

Yertiz,

Thank you for unfiltering me. I have done the same for you, as a temporary measure and with an as yet undefined backstop. For once I agree with a lot of what you've said here - the trump suggestion and EU-invented 'Ireland Problem' in particular.

If May can be removed, but I understand this is very doubtful, there would still be time to start again with a new approach which saw the Irish problem as a mere detail to be resolved by modern customs methods and included an inflow of cash from the EU for our share of the common assets over there. We could offer to suspend this for a decent deal.

[brexitplus] 15/11/2018 15:56

Come on now, can’t we all just get on?

Sorry, just a copy and paste.!!!!

[minerve] 15/11/2018 14:36

Yertiz

You are talking as if that £39Bn is handed down from the sky (by God) to us every year. That £39bn, believe it or not, has to be earned before it is spent. We earn it by trading with our trading partners.

Still waiting for a plan from Brexiters which has compassion for the Irish.

[meanwhile] 15/11/2018 10:06

I'll be 'skating to where the puck is going to be' in all my future investments and possibly in my life more generally.

Could I ask how we know where the puck is going to be, as viewed through a window of opportunity, going forward?

[gettingrichslow] 15/11/2018 09:23

This sounds really big. I'd like to know the specifics of what the partnership will entail, but this is where it's at in terms of 'skating to where the puck is going to be' over next 20 years.

[yertiz] 15/11/2018 08:55

At this rate, Melrose would be foolish to hive off Powder Metallurgy as there are a number of exciting collaborations coming to fruition. This is rapidly becoming a rather large jewel in GKN's crown.

[brexitplus] 15/11/2018 08:25

GKN Powder Metallurgy Announces a Technology Partnership With EOS

Collaboration Slashes Part Production Time by 70 Percent Through Innovative Approach to Metal-based Additive Manufacturing (AM).

FRANKFURT, Nov. 15, 2018 /CNW/ - GKN Powder Metallurgy , a company known for innovation and a leading materials and parts producer in the powder metal industry, today announced a strategic partnership with EOS, the world's leading technology supplier in the field of industrial 3D printing of metals and polymers. Together, the companies have designed a new, high-productivity process for Laser metal 3D Printing which has reduced production time by 70 percent and overall cost by up to 50 percent.

"We're thinking differently about what's possible in manufacturing; metal 3D printing and rapid prototyping have become a formidable part of our business," said Peter Oberparleiter, CEO of GKN Powder Metallurgy. "This collaboration makes laser metal 3D printing a viable long-term solution for manufacturers across the board that require fast delivery turnaround and could benefit from the high degree of design freedom that comes with Laser 3D printing. Our customers will be able to produce higher quality parts faster than ever before, with absolutely no tooling."

So far, additive manufacturing has been embraced by the automotive and industrial industries for rapid prototyping, but oftentimes, customers find the process cost prohibitive for producing parts at full-scale production. The combination of GKN's innovative metal powder, EOS StainlessSteel 316L VPro, and EOS's unique process and additive manufacturing expertise, make it possible to create a high-performance part designed for end-use at scale.

"In order to expand our foot print in the automotive industry, we were looking for a strong partner with a high level of expertise in the field of steels and typical industry grade materials combined with a proven track record of further industrializing technologies together with customer applications." said Dr. Adrian Keppler, CEO at EOS. "We found a perfect partner in GKN Powder Metallurgy. Based on this partnership, our customers will benefit from higher build speeds and lower material costs resulting in significantly optimized cost per part. This is going to lower the entry barrier and will enable completely new application fields."

[gettingrichslow] 15/11/2018 00:21

Meanwhile, I've got a question for you that I think you may be able to help with. It probably fits your general skill set at least. Ever since you mentioned McDonald's doing a new 'Jamaican Chicken' burger, I've been wondering, is it actually called that or is it a 'Jamaican McChicken' burger. I've been saving up £3.59 so that I can purchase one tomorrow but obviously I don't want to embarrass myself by getting the name wrong haha.

[meanwhile] 14/11/2018 23:49

brexit,

I've just come in here so don't know the background chat.
Is Mabel your wife?

[brexitplus] 14/11/2018 20:40

Getting

I am 6’3 and 15 stones, and Mabel makes me look small. The vet says she is rather larger than normal. And she eats masses.

[gettingrichslow] 14/11/2018 19:30

B+, how big is Mabel?? Surely not as big as a Scottish Deerhound?

[brexitplus] 14/11/2018 17:39

MORE GOOD NEWS FOR GKN AEROSPACE

“GKN AEROSPACE SIGNS $66M CONTRACT WITH PRATT & WHITNEY FOR F135 ENGINE COMPONENTS

GKN Aerospace Norway today announced that it has signed an eight-year agreement with Pratt & Whitney for the production of diffuser cases, low pressure turbine cases and shafts for the F135 engine, which powers the fifth generation F-35 Lightning II fighter aircraft. The agreement also includes an extension for the supply of several shafts for Pratt & Whitney’s F100, JT8D and FT8 engines.

This contract expands GKN Aerospace’s involvement in the F135 program and reinforces the company’s role as a long-term supplier of engine components for Pratt & Whitney.

Peter Hjortsberg, President of GKN Aerospace Engine Systems in Norway said: “We are very proud to have entered into this contract, with our long term important customer Pratt & Whitney. This multi-year agreement is a great base for continued cooperation and will be benefical for all parties involved. We look forward to further strengthening our relationship with Pratt &Whitney and to work together as one excellent team.”

The manufacture of all the covered engine components takes place at GKN Aerospace’s Kongsberg facility, which is GKN Aerospace Engine System’s Center of Excellence for Shafts. The facility also has extensive experience in the manufacturing of low pressure turbine casings using all in-house manufacturing processes.

"This award reaffirms Pratt & Whitney's commitment to F135 engine industrial participation in Norway," said O Sung Kwon, Executive Director of Pratt & Whitney Military Engines. "GKN Aerospace Norway competed globally and was selected as the best value supplier of these engine components, and will play a valuable role in our global supply chain for the F135 engine."

[brexitplus] 14/11/2018 17:37

Hi Losos, our niece’s Chow Chow is now just over a year old, and huge!!! Named Mabel, she is so good natured. We’ll be seeing her on Sunday which is always a pleasure.

Another reasonable day for Melrose.

[gettingrichslow] 14/11/2018 14:15

Losos, our Springer was called Cricket, not sure if it was the sport or the animal that she was named after! I guess you're right about the memory thing especially when you consider how old she'd have been in dog years by the time she was rescued. She was a very intelligent animal - it was almost impossible to trick her into doing anything. When we first got her we once tried to lay a trail of doggy chocs to get her to go into her room for bedtime but she'd leave the last ten chocs and look at us as if to say 'nice try, now what are you going to do?!'

[meanwhile] 14/11/2018 14:07

"This fact is reflected in the old saying "You can't teach an old dog new tricks"".

No hope for most of us then, Losos.
The only one I can think of who might be susceptible to new tricks is the youthful Minerve.

[losos] 14/11/2018 12:57

gettingrichslow - "Losos, did your four legged friend enjoy the walk? I used to have an English Springer Spaniel when I was a young boy - she had been mistreated as a puppy and didn't get on with men with beards!"

Thank you for asking, yes our Casey always enjoys his walks, in fact it's the highlight of his day, even if we don't see any other dogs there's always loads of smells to investigate and follow he loves it.

He is now quite old and has a bad heart (DCM) plus his back legs suffer from arthritus which is common in older large breed dogs. But he's an old trooper and nothing will stop him going on his walks :-)

Almost all of what a dog learns comes in the first year so a puppy who is mistreated will remember all the good and bad things that happen to them in that first year and remember it for ever. This fact is reflected in the old saying "You can't teach an old dog new tricks"

[meanwhile] 14/11/2018 11:21

Thanks, Minerve. You've put a lot of work in that answer.

I find it impossible to discuss in this detail since I don't research these companies & sectors the way you do. Brexitplus seems to have a similar system to yourself but at a stage you were at 20-30 years ago.

I go more on pure instinct, probably acquired through living with lots of animals.
I suspect Melrose of operating in a similar way. Like antique dealers, everything in the shop is for sale, some good stuff, some rubbish. They know when to give it prominence by putting it in the shop window, to make a sale. They remember what they paid for it and they want 50-100% profit.

[minerve] 14/11/2018 10:46

MEANWHILE

Good morning to you.

If I was Melrose investor I would be focusing on the auto markets for GKN. Although Melrose, I believe, have reported slightly better than expected performance here I would be concerned about trend. The full fall-out from the major car manufacturers is yet to wash through. The valuations of car manufacturers are very low - Daimler at five year low - and many have had multiple profit warnings. In the short/medium term the auto makers are facing significant headwinds. Several emissions standards are due in Europe and China in addition to race for electrification. This will put pricing pressures on supply chains and changes in supply chains which are difficult to predict. You have also got the huge tech companies muscling their way into these markets because the electronic component costs on electric cars are many multiples of what they are today. LG has a significant part in the component cost of the latest electric Chevrolets for example. Also current battery technology is so dependent on cobalt which is limited in supply that users are racing to tie up supply deals for the future so growth isn't hindered. China and Asia have the lead here by all accounts. Obviously those who don't tie themselves in with the right suppliers will find themselves without a chair when the music stops.

(I sold out of my holding in JMAT because I couldn't see them matching competitors at their investment in battery tech. They seem to be playing catch-up. Their cathode material is excellent in that it doesn't require cobalt to deliver superior performance but they really need collaboration with some of the large auto manufacturers/suppliers. I'll most likely buy back in if they announce news on this.)

So, in my opinion, aerospace is going to be the darling and auto could start to drag. If auto starts to drag that could way heavily on Melrose sentiment considering GKN have one of the worst pension liabilities on the FTSE 100. Investment grade corporate bond and gilt rates will come into play too. Melrose now has significant debt although it is quite a reasonable distance from covenants ATM. Of course you have the stupid trade wars but I hope the idiot in the US will see sense soon.

I don't know why the numpty keeps on refering to Rolls Royce? Rolls Royce has problems but many of them are good problems that happen with ramp ups in supply. 'In operation' monitoring is improving day-by-day and I would expect to see perhaps more plane down time as this improves. Hopefully not on the same scale as the Trent 1000 issues though. They just need to manage this as the number of engines in the sky significantly increases.

Rolls Royce is only 1 of 27 stocks in my portfolio and short term performance is irrelevant to me as I buy for long medium/long-term - five year plus. I couldn't care less where the share price is unless I am looking to buy or sell. ATM with Rolls Royce I am looking to do neither.

Enjoy your day.

[gettingrichslow] 14/11/2018 09:59

Frankfurt obviously hasn't got the breadth or depth of cultural attractions as London, but I wouldn't call it dull as such, it's quite a quirky place and very seedy too (Eros Centres everywhere and other adult venues). They've also rebuilt the old town like they have in Dresden. I've travelled a lot around Germany and it has got some great places to spend a few days - Cologne, Dusseldorf, Hamburg and Berlin obviously spring to mind.

[brexitplus] 14/11/2018 09:53

JPMorgan also reiterates Overweight

[brexitplus] 14/11/2018 09:16

Hi Getting

Can I ask, did you enjoy Frankfurt. From what I read it seems a throughly dull place.

Yes, market all over the place. I’ve been right through the “new” GKN website, which as you would expect, is positive. There is a lot of coverage of China and Asia, the increasingly high technology, particularly Additive Manufacturing, and new products. This I like to see. I think Melrose sees GKN increasingly as more of a high tech company/disrupter than a traditional engineering company.

Of course it will take time so I am trying to look at what Aerospace and Auto in its various guises will look like in 3-5 years time. Exciting times, particularly when you have a board that wants to push ahead quickly.

I posted about RR because comparisons are useful when analysing particular markets. It certainly has plenty of problems, including now lack of engineering resources for testing the repaired engines. And while it’s competitors are having problems you can’t help thinking it’s traditional board has taken on a hell of a lot.

Senior likewise suffering.