GKN plc has reported a 20% increase in the group’s operating profit to £661 million in 2013, up from £553 million in 2012. Pre-tax profit was stated to be £578 million, up %17, with sales across the group up 10% on the previous year at £7,594 million.
“We have again made good progress in-line with our strategy to grow a market-leading global engineering business. Although some of our end markets were challenging, we continued to show growth and are reporting good underlying financial results, helped by our 2012 acquisition of GKN Aerospace Engine Systems, which performed strongly. We expect the Group’s progress to continue in 2014,” stated Nigel Stein, Chief Executive, GKN plc.
The GKN Powder Metallurgy division, comprising GKN Sinter Metals and Hoeganaes, reported that sales increased 7% to £932 million, up from £874 million in 2012. Strong growth was reported in North America, Europe and China but with a more modest improvement in India, where vehicle markets remained volatile. Sales in Brazil fell due to weaker industrial markets. Trading profit for GKN Powder Metallurgy increased £7 million to £94 million in 2013.
GKN stated that during the year the Powder Metallurgy division continued its strong product development, particularly with advanced products and powders, and was awarded £144 million of annualised sales in new business. Notable milestones reported by GKN included:
- Opening a new sintering plant in Yizheng China
- Receiving the Award of Distinction for its rear camshaft cap component used on Chrysler four-cylinder engines in the Dodge Dart
- Good progress in developing transmission gears which were validated by a major European transmission manufacturer
- New products to aid fuel-efficiency such as: helical pulley gear for electric power steering system for ZF Group; pump components for a global double clutch transmission (DCT) programme for Getrag, high strength gear ring component for Start Stop systems for Valeo; and components for a number of variable valve timing (VVT) systems.