GROUP sales and net debt have both risen at automotive, aerospace and land systems engineering company GKN, the company reports today.
The Redditch-based firm says, in an interim management statement for the period since July 1 this year, that it has made “strong progress through the third quarter and expects a solid close to the year”.
Group sales in the three months ended 30 September 2010 totalled £1.33bn, a 21% increase year-on-year.
Favourable currency translation and acquisitions increased sales by £40m and therefore underlying sales increased by 17%.
Third quarter trading profit was £100m, a 92% increase over the comparable period in 2009, or an 87% underlying increase.
The group’s pre-tax profit was £88m however its net debt at the end of last month was £212m, a climb from £202m at June 30 this year.
In its automotive division, the company said that overall demand during the third quarter remained at similar levels to the second quarter, with the European seasonal decline less than normal and strong demand in North America and Asia.
GKN’s automotive Q3 sales increased by 34% compared with last year, to £800m, up from £598m in 2009 or 28% on an underlying basis.
Trading profit was £55m, up year-on-year by £14m and overall automotive trading margin was 6.9%.
In its aerospace division, Q3 sales were down by 3% on last year at £349m from £361m, a fall of 7% on an underlying basis.
Trading profit was down £4m to £39m and the trading margin was 11.2%.
The markets for land systems returned to normal third quarter seasonal patterns, GKN reports, and sales were 11% lower than Q2.
Compared with last year, land systems’ Q3 sales were up 30% at £165m, from £127m, with trading profit of £8m as opposed to a trading loss of £3m in 2009.
