GKN plc issues trading update
December 13, 2007
GKN plc, which includes production operations for components produced by the powder metallurgy (PM) and metal injection moulding (MIM) processes, released a stable forecast ahead of its financial year end on 31 December.
The powder metallurgy division has been hit by higher raw material costs and some operational disruption from the completion of restructuring activity so that year to date performance is marginally below 2006.
Group trading profit for the eleven months to November shows a solid improvement over the same period last year with Driveline, Aerospace and OffHighway all ahead.
Overall market conditions in the second half of the year were reported as being much as anticipated at the time of the Interim Results announcement in August. Whilst car and light vehicle production in North America is currently forecast to be fractionally lower than expected, Western Europe, China and India are all slightly higher.
Agricultural markets in Europe and North America have remained firm and, although US light construction demand has eased, the mining and heavy construction sectors have remained sound. Demand continues to be strong in both civil and military Aerospace markets.
Powder Injection Moulding International’s December issue includes a full report on our recent visit to GKN’s Bad Langensalza metal injection moulding plant.
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