GKN reports record 2012 profits, Hoeganaes powder shipments up 9%
February 27, 2013
GKN plc has reported full year results for 2012, highlighting a group sales increase of 13% to £6,904 million and trading profit increase of 19% to £557 million. The GKN Powder Metallurgy division reported sales of £874 million, up 3% on 2011 figures, with profit up 21% to £87 million, providing a trading margin of 10%.
“2012 was another strong year for GKN with record profits in all four divisions,” stated Nigel Stein, Chief Executive, GKN plc. “The Group has continued to make good progress financially and in implementing our strategy to build a market-leading global business, with excellent technology, a focus on operational excellence and above-market growth.”
GKN Powder Metallurgy is the world’s largest manufacturer of sintered components. GKN Powder Metallurgy comprises of GKN Sinter Metals and Hoeganaes. Hoeganaes produces metal powder for GKN Sinter Metals and other customers.
Hoeganaes increased the number of tons of powder shipped by 9%, driven by strong automotive markets in North America. Organic sales for GKN Sinter Metals increased 10% in North America, due to strong automotive production, and 1% in Europe, where automotive production fell 5%. Strong growth was achieved in China and modest growth achieved in India and Brazil where vehicle markets were more volatile.
The company stated that during 2012 GKN Powder Metallurgy was awarded £120 million of annualised sales in new business. Its technology and quality was also recognised externally, receiving Design Excellence Awards for its variable valve timing rotor adapter assembly and a unitised one-way clutch module. In addition, four supplier quality excellence awards from General Motors (GM) Powertrain were received, placing GKN Sinter Metals within the top 2% of all GM Powertrain suppliers and in Europe it was awarded “Supplier of the year 2012” by INA Schaeffler.