GKN reports that its sales in 2015 increased by 2% organically from £7,456 million in 2014 to £7,689 million, with good growth in automotive and aerospace. Profit before tax (management basis) was £603 million, compared to £601million in 2014.
‘GKN continued to make progress in 2015 and delivered on 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. Highlights of the year were GKN Aerospace’s acquisition of Fokker Technologies, strong market-beating growth by GKN Driveline and good margin advances by GKN Powder Metallurgy. Looking forward, we expect 2016 to be a year of good growth, helped by the contribution from Fokker.’
Weaker markets
GKN Aerospace’s organic sales growth in commercial aerospace (+6%) was partly offset by decline in military (-9%). GKN Powder Metallurgy had organic sales growth ahead of market of £906 million compared to 916 million in 2014, before the pass-through of lower raw material surcharges, and won £185 million of annualised new and replacement business. Underlying sales growth was achieved in North America, China and Europe but sales in Brazil fell sharply due to weaker automotive and industrial markets.
‘In automotive, external forecasts predict growth in global light vehicle production of around 3% with increases in China, North America, Europe and India while Brazil is expected to show a further sharp decline,’ the company said in a press release. ‘Against this background, GKN Driveline and GKN Powder Metallurgy are expected to continue to grow organically above the market.’
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.
