Latest news with #Dilnot
Yahoo
06-03-2025
- Business
- Yahoo
Britain can shake off US and become a drone superpower, says defence boss
Military drones offer the quickest route for Europe to rebuild its arms industry and reduce reliance on US weaponry, according to the boss of a key UK defence supplier. Peter Dilnot, the chief executive of GKN Aerospace parent Melrose Industries, said governments should prioritise investment in unmanned aircraft, because they take much less time to develop compared with traditional military equipment such as fighter planes. Mr Dilnot said European authorities were already stepping up drone programmes, which have played a central role in the Ukraine conflict. He said: 'Quite a lot of the development is uncrewed aircraft and cycles for those are a bit faster. If you don't strap someone to something you can speed up the development cycle. Because of what's happened, quite a lot of that is going on underneath the hood.' Mr Dilnot said Donald Trump's recent stance on Ukraine had given the European defence sector a new impetus, as he said that companies such as GKN 'will step up' production. GKN is a supplier for military programmes such as the General Atomics MQ-9 Reaper hunter-killer drone, for which it produces composite tail sections and lightweight landing gear. Mr Dilnot said: 'I wouldn't describe it as a war footing, but there is an urgency around this. It will take time.' Time will also be needed for Europe to reduce its reliance on American hardware, he added, particularly given that the vast majority of the West's defence spending is on US equipment. He said: 'Much of European defence spending on procurement is actually on US platforms. You can't change that overnight.' US programmes are the cornerstone of Melrose's defence business, led by the Lockheed Martin F-35 fighter, whose European customers include the UK, Germany and Italy. It also works on the Boeing Apache attack helicopter used by the British Army. Meanwhile, despite increased tensions between Europe and Mr Trump, Mr Dilnot said he saw little danger of the US pulling the plug on defence exports. He said: 'Unless there's a major breakdown between Europe and the US that goes beyond the tariff element, then it would be an act of self-harm for them. 'It's the inverse of everything that Mr Trump is driving towards. What they want is for other countries to be spending more on their kit.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
06-03-2025
- Business
- Telegraph
Britain can shake off US and become a drone superpower, says defence boss
Military drones offer the quickest route for Europe to rebuild its arms industry and reduce reliance on US weaponry, according to the boss of a key UK defence supplier. Peter Dilnot, the chief executive of GKN Aerospace parent Melrose Industries, said governments should prioritise investment in unmanned aircraft, because they take much less time to develop compared with traditional military equipment such as fighter planes. Mr Dilnot said European authorities were already stepping up drone programmes, which have played a central role in the Ukraine conflict. He said: 'Quite a lot of the development is uncrewed aircraft and cycles for those are a bit faster. If you don't strap someone to something you can speed up the development cycle. Because of what's happened, quite a lot of that is going on underneath the hood.' Mr Dilnot said Donald Trump's recent stance on Ukraine had given the European defence sector a new impetus, as he said that companies such as GKN 'will step up' production. GKN is a supplier for military programmes such as the General Atomics MQ-9 Reaper hunter-killer drone, for which it produces composite tail sections and lightweight landing gear. Mr Dilnot said: 'I wouldn't describe it as a war footing, but there is an urgency around this. It will take time.' Time will also be needed for Europe to reduce its reliance on American hardware, he added, particularly given that the vast majority of the West's defence spending is on US equipment. He said: 'Much of European defence spending on procurement is actually on US platforms. You can't change that overnight.' US programmes are the cornerstone of Melrose's defence business, led by the Lockheed Martin F-35 fighter, whose European customers include the UK, Germany and Italy. It also works on the Boeing Apache attack helicopter used by the British Army. Meanwhile, despite increased tensions between Europe and Mr Trump, Mr Dilnot said he saw little danger of the US pulling the plug on defence exports. He said: 'Unless there's a major breakdown between Europe and the US that goes beyond the tariff element, then it would be an act of self-harm for them. 'It's the inverse of everything that Mr Trump is driving towards. What they want is for other countries to be spending more on their kit.'
Reuters
06-03-2025
- Business
- Reuters
Aerospace group Melrose's revenue outlook triggers share price slide
March 6 (Reuters) - GKN Aerospace owner Melrose (MRON.L), opens new tab forecast 2025 revenue below most analysts' expectations, sending its shares sharply lower on Thursday, as global trade uncertainties and industry-wide supply chain challenges persist. Shares of the aerospace parts supplier fell as much as 12%, making it the biggest loser on Britain's blue-chip FTSE-100 (.FTSE), opens new tab index. Production delays and supply chain issues at top plane makers Boeing (BA.N), opens new tab and Airbus ( opens new tab have hurt aerospace, but Melrose has benefited from growing demand for after-market services as airlines extend the use of older aircraft. It is also benefiting from burgeoning spending on defence, which makes up about a third of its business. "We are well positioned for further progress in 2025, including the expected delivery of substantial free cash flow, despite ongoing industry challenges," CEO Peter Dilnot said. Melrose did not factor potential trade tariffs in its forecasts but said any impact was likely to be "pretty small" for the company as a whole. "If they land as they do today and they stick, in the context of a group that's going to generate 700 million (pounds) of operating profit, it's pretty small and it really impacts the flow of material between Mexico, where we have quite a large operating base, and into the US," Dilnot told Reuters, referring to Melrose's forecast for 2025. "The rest of it is not covered by the tariffs." Melrose expects 2025 revenue of 3.55-3.70 billion pounds ($4.58-$4.77 billion), below analysts' consensus of 3.77 billion pounds. It is targeting annual revenue growth in the high single digits over a five-year period. "We continue to view Melrose as an attractive pureplay aerospace company, benefiting from market recovery and self-help initiatives, combined with an appealing valuation," Quilter Cheviot's Matt Dorset said. For 2024, Melrose reported adjusted operating profit of 540 million pounds, and revenue of 3.47 billion pounds. ($1 = 0.7757 pounds)
