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Trading statements

GKN expects another year of growth

26 April 2017 07:42

GKN said it achieved good organic sales growth in the first quarter as well as continuing to benefit from currency translation.

The group said the automotive market performed better than expected but growth in aerospace was slightly slower than planned.

The group said GKN Aerospace sales in the first quarter increased modestly on an organic basis.

It said: "As expected in commercial aerospace, the production ramp-up of new aircraft is slightly more than offsetting cuts in the A380, Boeing 777/747 and business jets.

"Military sales were up compared to the prior year, reflecting the ramp-up of the F-35 Lightning II and stable production levels in older programmes."

The group said KN Driveline delivered good first quarter sales ahead of global industry production rates that were up 6%.

It added: "External forecasts continue to expect full year global auto production to increase by only 2%, with Europe and North America down in the second quarter.

"China continues to experience robust demand."

The group said GKN Powder Metallurgy's organic sales growth was in line with global auto production rates and it also benefited from currency translation and the acquisition of the powder manufacturer in China, in 2016.

The growth included the direct pass through of higher raw material prices which also had the effect of reducing margins slightly.

Chief executive Nigel Stein said: "GKN delivered a good performance in the first quarter. The encouraging growth rate achieved to date may not be sustained as the year progresses and comparators get tougher, nevertheless we expect 2017 to be another year of growth."

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