GKN anticipates continued growth for 2017
April 26, 2017
GKN plc has reported that overall the global engineering group achieved good organic sales growth in the first quarter 2017 (January – April), with the automotive market performing better than expected, as well as continuing to benefit from currency translation. Growth in aerospace has, however, been slightly slower than planned, the company stated.
“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,” stated Nigel Stein, GKN’s Chief Executive.
The company stated that its trading margin has moved ahead of the previous year’s, although GKN Driveline and GKN Aerospace have seen some impact from the increased cost of raw materials. GKN Aerospace is tracking in-line with the company’s plans, with an operating cash-flow similar to the equivalent period in 2016.
GKN Powder Metallurgy has seen organic sales growth in line with global auto production rates and has also benefited from currency translation. Its growth includes the direct pass through of higher raw material prices, which have also reduced margins slightly. Earlier this year, GKN Powder Metallurgy announced its plan to acquire Tozmetal Ticaret Ve Sanayi AS (Tozmetal), a Turkish sinter metal component manufacture. Tozmetal reported sales of 24 million in 2016.
