(Reuters) - Profits at engineering business owner Melrose Industries Plc <MRON.L> plunged 90% to 56 million pounds ($74.48 million) in the first half of 2020, the company said on Thursday, while outlining some signs of a pickup in a number of markets.
Melrose, which specialises in buying and turning around businesses and owns UK-based car and aerospace parts maker GKN, also said that consultations on redundancies with some of its 53,000 employees were underway and would see a "significant" reduction in workforce in the second half.
"These are extraordinary times which we have addressed with rigorous cash-management and decisive restructuring actions; recently, and encouragingly, we have started to see trading improving in some key end-markets," said Chairman Justin Dowley.
The company said in July it planned to cut jobs as it grapples with the pandemic that has hit some of its biggest divisions and dragged it to a second-quarter loss.
Melrose reported adjusted revenues of 4.36 billion pounds, 25.8% lower than last year. It fell to an adjusted pretax loss of 40 million pounds for the six months to June 30, compared with a profit of 431 million pounds last year.
The company also said GKN aerospace has not seen any improvement since the end of June. Asset write downs in the first-half included 133 million pounds within the division.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Devika Syamnath and Uttaresh.V)