Group results issued by GKN plc for the first six months trading in 2013 showed that sales increased by 12% to £3,647 million (up 2% on organic basis) compared with the same period in 2012. Reported profit before tax of £134 million (2012: £279 million) was lower, primarily due to foreign exchange rate changes impacting the mark to market value of foreign exchange contracts.
“GKN has continued to make good progress against our strategy to grow a market-leading global engineering business. Although some of our end markets remained challenging, we continued to outperform and are reporting good underlying financial results with further benefit from last year’s acquisition, GKN Aerospace Engine Systems (formerly Volvo Aero), which is performing well. The first half met our expectations and, with planned restructuring costs now behind us, we expect a stronger second half performance and to deliver good progress in 2013,” commented Nigel Stein, Chief Executive of GKN.
The GKN Powder Metallurgy Division sales grew by 2% to £480 million in the six month period with a trading margin of 10%, including restructuring charges. The PM Division is expected to show good year-on-year sales improvement, although reflecting normal seasonality. Second half profit in the Division will also benefit from the absence of restructuring charges.