By Anthony O. Goriainoff
Melrose Industries said it expects total incremental GKN Aerospace sales of around $5 billion after signing an agreement with GE Aerospace which expands its revenue and risk sharing partnership on the GEnx engine program.
The FTSE 100-listed turnaround specialist said Monday that its GKN Aerospace division’s involvement in the GEnx partnership has been extended beyond the current original equipment focus and includes a significantly greater participation in the after-market phase.
The company said the sales estimate is over the 30-year life of the GEnx engine, and that there is no material change to its short-term guidance.
The new agreement also covers new technology insertion, after-market repair of high-volume engine structures and production of fan cases for a range of GE engines.
“This agreement illustrates the unique breadth and quality of our business across the aerospace engines industry and its position as a technology leader,” Chief Executive Simon Peckham said.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
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