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GKN post record results

British engineering firm GKN has announced record profits in all four of its divisions over the past 12 months.

Announced on the stock exchange on Tuesday, GKN said sales had increased by 13% and its trading margin widened to 8.1%.

Furthermore, the company’s land systems unit saw organic sales growth of 1%, while its driveline and powder metallurgy divisions increased by 7% each and its aerospace section saw 8% growth.

Expansion into Mexico and China boosted results in the driveline division, which makes car components, while GKN’s acquisition of Volvo Aero bolstered its aerospace unit.

The company anticipated 2% growth increases for light vehicle production in Asia and North America over the next year, but said Europe would be down.

With this in mind, GKN said its driveline and powder metallurgy units would improve further in 2013, however low market demand in Europe could impact the business.

Nick Stein, GKN’s chief executive, commented: “2012 was another strong year for GKN with record profits in all four divisions.

“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 operates in global markets and has the capabilities needed to take advantage of the growth opportunities that those markets bring.

“With the benefit of a full year contribution from Volvo Aero, we expect 2013 to be a year of good progress for the Group.”

This was posted in Bdaily's Members' News section by Miranda Dobson .