GKN group sales increase in Q3
GKN plc has announced that group sales in the three months ended 30 September 2012 totalled £1,608 million, an 8% increase over the comparable period in 2011. Third quarter trading profit increased slightly to £114 million (2011: £113 million) although trading margin reduced to 7.1%, largely as a result of lower profitability in the Driveline division.
Since GKN’s half year results announcement in July, demand has remained broadly in line with expectations with more challenging European automotive and industrial markets being offset by strong automotive demand in the US and China and continued growth in civil aerospace, stated the company.
“In the third quarter, the Group’s global footprint with its exposure to the strong markets of North America and China, as well as civil aerospace, allowed us to offset weaker European markets. Profit was affected by expected seasonal factors and operational issues in Driveline. Looking forward, European markets seem to be softening further. We continue to focus on driving performance, keeping close control of our cost base,” stated Nigel Stein, Chief Executive, GKN plc.
GKN Powder Metallurgy
GKN Powder Metallurgy’s third quarter sales reduced 1% to £208 million (2011: £210 million), due to adverse currency translation more than offsetting organic sales growth of 4%. Trading profit increased 25% to £20 million (2011: £16 million) at a margin of 9.6% (2011: 7.6%).
Year-to-date (January – September) sales for GKN Powder Metallurgy have increased 4% to £673 million (2011:£645 million) and profit for the year so far is up 22% at £67 million (2011:£55 million).
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