GKN Powder Metallurgy reports record year for powder sales
February 24, 2016
GKN plc has reported its results for the year ended 31 December 2015, showing sales for the whole group increased to £7,689 million. Operating profit fell slightly to £679 million (-1%) over the previous year.
“GKN continued to make progress in 2015 and delivered on our expectations. We performed well against our key markets, overcoming some demand weakness and demonstrating once again the strength of our businesses, strong market positions and leading technology,” stated Nigel Stein, GKN’s Chief Executive.
“Highlights of the year were GKN Aerospace’s acquisition of Fokker Technologies, strong market-beating growth by GKN Driveline and good margin advances by GKN Powder Metallurgy. Looking forward, we expect 2016 to be a year of good growth, helped by the contribution from Fokker,” added Stein.
GKN Powder Metallurgy
GKN Powder Metallurgy, comprising of GKN Sinter Metals and Hoeganaes, reported 2015 sales of £906 million with a trading profit of £109 million (up 6% on previous year). The company announced record sales of powder for the year. Underlying sales growth was achieved in North America, China and Europe but sales in Brazil fell sharply due to weaker automotive and industrial markets.
The divisional trading margin was 12.0% (2014: 11.0%), reflecting the move towards higher value “design for Powder Metallurgy” parts and a small margin benefit from lower raw material prices passed through to customers.
During the year, GKN stated that its Powder Metallurgy division achieved a number of important milestones, which included:
- Winning around £185 million of annualised sales in new and replacement business
- Its position in China being further enhanced by forming a new venture to produce metal powders, subject to approvals
- Development of new technically enhanced powders continuing with a new research titanium atomiser being commissioned at the Powder Innovation Centre, in the USA and the attainment of AS9100 Certification for the AncorTi™ range of gas atomised titanium powders for aerospace applications.