Global automotive market continues to drive growth for GKN
MIDLANDS engineering giant GKN has continued to benefit from the strong global automotive sector, announcing a major growth in first quarter performance.
The Redditch-based group said its principal markets had performed in line with the expectations set out in February.
Management sales for the three months ended March 31, 2016 were £2,179m (2015: £1,943m). This represents a 12% increase, which comprised 1% organic growth, 8% acquisition growth and 3% beneficial currency translation.
“Our Automotive businesses continue to outperform the market and our Aerospace business has traded in line with our expectations, against a strong comparative period,” it said.
However, it added that its Land Systems’ markets remained tough.
Group trading margin is lower than last year primarily due to a reduction in GKN Aerospace as a result of lower military sales, the mix of new and mature programmes and the absence of last year’s one-off benefits, it said.
However, its Dutch acquisition, Fokker Technologies – now GKN Aerospace Fokker – helped increase profit but reduced trading margin.
Nigel Stein, Chief Executive, GKN, said: “Our overall performance in the first quarter was in line with our expectations. With end markets delivering as forecast and customers continuing to award us good levels of new and repeat business, we expect to grow in 2016 and beyond, helped by the contribution from Fokker, whose performance and integration is on track.”
