GKN Inc has reported management sales for the three months ended 31 March 2015 of £1,943 million, compared with £1,915 million in2014.
Powder Metallurgy in particular produced a strong first quarter, with sales up to £244 million (2014: £237 million). Organic sales growth was 3%, despite the negative impact on powder sales of a direct pass through of lower raw material prices. Powder Metallurgy margins were a little higher than those achieved over the comparable period last year. During the period, operations in Argentina were sold.
GKN Aerospace sales were slightly up the first quarter at £589 million (2014: £546 million), in line with expectations. The planned ramp-up of production of new aircraft was helping commercial sales while military demand was marginally down, the company said.
GKN Driveline delivered a good first quarter result with sales increasing 3% to £912 million (2014: £885 million). Organic sales increased 4%, against a very strong comparator period in 2014 and global industry production rates only 1% higher over the period. However, GKN Land Systems sales declined to £187 million (2014: £217 million).
Another year of growth
Sales in the quarter for GKN’s other businesses fell to £11 million (2014: £30 million) reflecting the disposal in 2014 of the Group’s share of the Emitec joint venture.
‘Our organic performance overall in the first quarter was in line with our expectations, with growth above our markets in GKN Driveline and GKN Powder Metallurgy, slight growth in GKN Aerospace, while GKN Land Systems was weaker,’ said Nigel Stein, chief executive, GKN plc. ‘Looking ahead, we continue to expect 2015 to be another year of growth.’
This story is reprinted from material from GKN, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.
