GKN has reported a sales increase of 22% in 2016. Profit before tax was up 12% to £678 million, compared to 2015 figures of £603 million.
‘This is a good set of results with GKN continuing to make underlying progress in line with our expectations,’ said Nigel Stein, chief executive of GKN. ‘We performed well against our key markets, overcoming some demand weakness and demonstrating once again the strength of our businesses, strong market positions and leading technology.
‘Strategically we made good progress, including smoothly integrating Fokker and completing the disposal of Stromag – evidence of our sharper focus on capital allocation towards aerospace and automotive markets. We expect 2017 to be another year of further growth, helped by the benefits of the actions taken in 2016 and GKN’s constant focus on continuous improvement.’
GKN Aerospace reported an organic sales growth in commercial aerospace (+3%) partly offset by decline in military (-2%), while GKN Driveline had organic sales growth of 6%, ahead of global auto production. GKN Powder Metallurgy had organic sales growth of 1%, before the pass-through of lower raw material surcharges.
Further growth
According to Teal forecasts, in 2017, the overall aerospace market is expected to be up 2%, with commercial deliveries 1% lower and military sales up 14%. Against that backdrop, GKN Aerospace’s 2017 organic sales are expected to grow slightly above the market.
In automotive, external forecasts predict growth in global light vehicle production of around 2% with increases in China and Europe, but North America down. Against this background, GKN Driveline and GKN Powder Metallurgy are expected to grow organically above the market.
2017 is expected to be another year of further growth, helped by the benefits of the actions taken in 2016 and GKN’s constant focus on continuous improvement.
This story uses material from GKN, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.
