GKN plc, recently announced improved group results reflecting the strong recovery in Driveline, Powder Metallurgy and Land Systems sales relative to a weak first half of 2009. A good performance in Aerospace and the on-going benefits from restructuring have resulted in overall sales up 25% (£536 million) to £2,701 million and a trading profit of £202 million, up £177 million, with a trading margin of 7.5%.
Powder Metallurgy sales are up 65%, with 6.9% trading margin, Driveline sales up 47% and 6.9% trading margin and Land Systems sales up 9% and 5.3% trading margin.
Sir Kevin Smith, Chief Executive of GKN plc, commented: “GKN’s recovery has moved into another gear and we are continuing to build on our global market-leading businesses. The first half trading environment has seen an improving trend for GKN’s Driveline, Powder Metallurgy and Land Systems businesses whilst the Aerospace market has continued to hold up well.
The benefits of our restructuring actions have enabled us to improve our margins and the continued focus on cash generation has resulted in a significant improvement in the net debt position. As a result, and with a more positive outlook, we are pleased to be able to recommence payment of a dividend at this half year stage.
Although macro-economic uncertainties continue, we remain confident that our strong market positions and sector leading technologies will enable us to take full advantage of growth opportunities as markets continue to recover.”
GKN state that the Driveline and Powder Metallurgy businesses are expected to show strong growth in the third quarter when compared with last year benefiting from recent market share gains and positions in the European premium car segment. For the second half as a whole a small reduction in sales is expected for both these businesses when compared with the first half reflecting more normal seasonal demand patterns.