GKN Powder Metallurgy reports growth and secures profitable EV business

Companies & MarketsNews
November 16, 2023

November 16, 2023

GKN Powder Metallurgy announced earlier this year a deal to supply Schaeffler AG with a range of permanent magnets (Courtesy GKN Powder Metallurgy)
GKN Powder Metallurgy announced earlier this year a deal to supply Schaeffler AG with a range of permanent magnets (Courtesy GKN Powder Metallurgy)

Dowlais Group plc – the parent company of GKN Powder Metallurgy, GKN Automotive and GKN Hydrogen, formed following the demerger of these companies from Melrose Industries PLC in April this year – has issued a trading update for the four-month period ending October 31, 2023.

“Following a strong first half, we have continued to execute well on our strategic priorities and leverage the strength of our operating businesses,” stated Liam Butterworth, CEO of Dowlais. “We have delivered strong growth and continued to expand margins as well as fully absorbing the impact of the UAW strike. Thanks to the outstanding quality of our market-leading businesses, we remain confident of delivering sector leading financial performance, regardless of the speed of electrification transition.”

Subscribe to our weekly newsletter
Sign up

The group reported profitable growth for the period, with adjusted revenues of £1.8 billion delivering 4.7% growth compared to the same period in the prior year. Adjusted operating margin of 6.8% was recorded, excluding central costs, representing an increase on the equivalent prior year of 100 bps and of 90 bps versus H1 2023.

It was stated that the group is continuing to generate healthy free cashflow and remains on track to reduce net debt at year-end, whilst continuing to invest in organic growth, expanding its best-cost-country manufacturing footprint and executing ongoing restructuring programmes.

Impact of UAW strike action in North America

The full-year financial impact of the UAW strike action on the group is expected to be in the range of £30-45 million of adjusted revenue and £10-15 million of adjusted operating profit. Despite this, the group’s ability to meet its full year expectations reportedly were said to remain unaffected due to strong operational execution within the businesses. This is based on the assumption that union members will ratify the proposed terms and production at the impacted customer plants will smoothly ramp up.

GKN Powder Metallurgy

GKN Powder Metallurgy recorded a growth of 4.2% in adjusted revenues during the period. Its adjusted operating margins of 9.0% matched the previous year’s equivalent period and the first half of the year. Powder Metallurgy has continued to expand its Electric Vehicle (EV) portfolio, securing profitable new business in the period that sets up the company for medium-term growth. In October, it announced commercial agreements for the supply of magnets with Schaeffler, which were outlined in the interim results. This represents a significant milestone for future growth opportunities.

GKN Automotive

During this period, GKN Automotive’s adjusted revenues increased by 4.8%, leading to adjusted operating margins of 7.6%. This is an increase of 120 bps from the equivalent prior year period and 110 bps compared to H1 2023. The market-leading Driveline and ePowertrain portfolios in automotive both experienced growth slightly exceeding the market. New business bookings remain strong, with the business already setting a new full-year lifetime booking record of £5.4 billion by the end of October. Importantly, the balanced nature of these bookings is said to demonstrate the business’ capability to achieve profitable growth, irrespective of vehicle electrification rates.



Download PM Review magazine
Companies & MarketsNews
November 16, 2023

In the latest issue of PM Review…

Download PDF

Extensive Powder Metallurgy industry news coverage, and the following exclusive deep-dive articles and reports:

  • Phoenix Sintered Metals: A story of transformation, growth and community from America’s PM heartland
  • World PM2024 Yokohama: The stage is set for the PM industry to find a path to sustainable growth
  • The state of Europe’s hard magnets industry and the challenge of optimising the mass production of Nd2Fe14B permanent magnets

The latest news from the world of metal powders, delivered to your inbox

Don't miss any new issue of PM Review, and get the latest industry news. Sign up to our weekly newsletter.

Sign up

Join our community

Discover our magazine archive…

The free-to-access PM Review magazine archive offers unparalleled insight into the world of Powder Metallurgy from a commercial and technological perspective through:

  • Reports on visits to leading PM part manufacturers, metal powder manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.


Browse the archive


Looking for PM production equipment, metal powders, R&D support and more?

Discover suppliers of these and more in our
advertisers’ index and buyer’s guide, available in the back of PM Review magazine.

  • Powders & materials
  • Powder process, classification & analysis
  • PM products
  • Atomisers & powder production technology
  • Compaction presses, tooling & ancillaries
  • Sintering equipment & ancillaries
  • Post-processing
  • Consulting & toll sintering
View online
Share via
Copy link