Reported profit before tax was £221 million (2013: £484 million), lower primarily due to the £232 million movement on the mark to market valuation of forward foreign exchange contracts.
GKN Aerospace had an organic growth of 4% in commercial aerospace with military orders broadly flat, while GKN Powder Metallurgy showed growth ahead of global auto production and a trading margin of 11.0%, at top end of target range. The division continued its expansion of Chinese production and an upgrade of the North American capacity in progress.
Growth in automotive
‘In automotive, external forecasts predict growth in global light vehicle production of around 2% with increases in China and North America, and Europe flat,’ said GKN in a press release. ‘Against this background, GKN Driveline and GKN Powder Metallurgy are expected to continue to grow organically above the market.
‘Although some markets remain challenging, 2015 is expected to be a year of further growth. Beyond 2015, we are well positioned to outperform in our large global markets.’
