Figures released in GKN plc’s interim management statement show that the GKN Group made good progress in the three months ended 30 September 2013, with sales totalling £1,865 million, a 16% increase over the same period in 2012, including 6% organic growth. The increase in sales from acquisitions less divestments was reported as £145 million.
“The third quarter showed good progress, supported by automotive demand in China and North America and sustained high output levels in commercial aerospace. GKN Aerospace Engine Systems made a strong contribution to the Group’s 34% growth in profit before tax,” stated Nigel Stein, Chief Executive, GKN plc.
Third quarter sales in the groups GKN Powder Metallurgy division were up 13% to £234 million (2012: £208 million), with organic sales growth of 10%, outperforming automotive production in both Europe and North America, stated the report. Trading profit increased to £23 million (2012: £20 million) at a margin of 9.8% (2012: 9.6%).
Year to date figures for GKN Powder Metallurgy were also up on the previous year with the first nine months sales totalling £714 million, up from £673 million in 2012.
The report stated that global light vehicle production in the third quarter, of around 20.0 million vehicles, was 4% ahead of the comparable period in 2012 with good growth in China (+9%) and North America (+6%) and more modest growth in Europe (+2%) and Japan (+2%). Brazil (+7%) and India (+5%) continued to be volatile.
Automotive and commercial aerospace markets are expected to remain robust with industrial and military aerospace markets soft, the company stated. The Group expects 2013 overall to show another year of good progress helped by the contribution of GKN Aerospace Engine Systems.