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Engineering group Melrose Industries said it was seeing an improvement at its aerospace business, but that its automotive unit was being hit by supply constraints.
In a trading update for the three months through September, the company said revenue in that period in the aerospace unit had risen 161%.
'The aerospace business continues to improve its performance through restructuring, and we expect the pace of this to further pick up during the second half,' it added.
However, it reiterated that supply constraints were hurting its automotive and powder metallurgy divisions.
'At present the timing and duration of these constraints is uncertain, but recently the consensus view is that they have lengthened,' Melrose said.
'There are a number of scenarios possible, but it is likely these are below previous expectations.'
It said underlying demand from automotive customers was strong, but deliveries were being constrained by supply-chain issues caused by the global shortage of semi-conductors.
In-month cancellations from customers had risen from a normal rate of around 1% each month experienced in the first quarter to a current rate of about 20%-25%.
'Both the automotive and powder metallurgy businesses are fully on track to achieve their margin targets once supply constraints are resolved,' the company said.
'As an inflationary environment returns, all of the businesses are focussed on the recovery of their costs and will take whatever actions are necessary to do so.'