GKN posts fall in profit

Profit and sales hit by adverse currency markets, says engineering giant

GKN has reported a 54% drop in pre-tax profit to £484 million for the year ended 31 December largely thanks to adverse exchange rates.

The company's sales were also hit by adverse currency markets, falling 2% to £6.98 billion for the 12-month period.

In aerospace, the company reported organic growth of 4% in commercial aerospace with military broadly flat. Commercial aircraft order book remains strong, the company said.

Meanwhile, GKN Land Systems posted a 10% fall in organic sales down as a result of challenging conditions in the agricultural equipment market.

Nigel Stein, chief executive, said: “This was another good performance, particularly in our automotive businesses, with GKN Driveline delivering 8% organic sales growth and an 8.1% trading margin, while GKN Powder Metallurgy achieved an 11% margin.

“GKN Aerospace delivered another good result. We have continued to outperform our key markets and report good underlying financial results in spite of sterling’s strength and some end market weakness, particularly in Land Systems. Looking forward we expect 2015 to be another year of growth.”

The company reported net debt of £624 million, £108 million lower than last year.