GKN plc has reported group sales for the three months ended 31 March 2015 reached £1,943 million up from £1,915 million in the same period of 2014. This represented a 1% organic increase, with beneficial currency translation being broadly offset by disposals, the company stated.
GKN Powder Metallurgy produced a strong first quarter, with sales up to £244 million from £237 million in 2014. Organic sales growth was 3%, despite the negative impact on powder sales of a direct pass through of lower raw material prices. Powder Metallurgy margins were a little higher than those achieved over the comparable period last year. During the period, operations in Argentina were sold.
The strengthening of the US$ versus £ sterling has had a positive impact on the group’s results, especially in Aerospace but the weakening of the Euro has had a negative impact, particularly in Driveline and Land Systems. Group trading margin was slightly ahead of last year benefitting from currency, in spite of a decline in Land Systems.
“Our organic performance overall in the first quarter was in line with our expectations, with growth above our markets in GKN Driveline and GKN Powder Metallurgy, slight growth in GKN Aerospace, while GKN Land Systems was weaker. Looking ahead, we continue to expect 2015 to be another year of growth,” stated Nigel Stein, Chief Executive, GKN plc.