24th Feb 2015 07:49
LONDON (Alliance News) - GKN PLC Tuesday reported a lower pretax profit for 2014, hit by a lower valuation of its foreign exchange contracts in its accounts, although profit rose excluding this thanks largely to a lack of restructuring charges that weighed on its 2013 results.
The engineer of components for the aerospace and auto markets reported a pretax profit of GBP221 million for 2014, down from GBP484 million in 2013, as it booked a GBP232 million impact from the mark to market valuation of forward foreign exchange contracts. However, its pretax profit excluding this mark to market valuation and other exceptional items, its preferred measure of profitability, rose to GBP601 million, from GBP578 million, after it booked GBP25 million in restructuring charges in 2013.
The maker of parts for both Airbus and Boeing planes said revenue declined to GBP6.98 billion, from GBP7.14 billion in 2013, as adverse currency movements knocked GBP403 million off the latest figure. Sales would have been up 4% on an organic basis, driven by growth in its driveline, aerospace and powder metallurgy businesses that helped offset a further decline in revenue in its land systems business.
Still, GKN raised its total dividend for 2014 to 8.4 pence, from 7.9p in 2013, a move it said reflected the improvement in trading performance and its future prospects.
"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," GKN Chief Executive Nigel Stein said in the statement.
By Steve McGrath; [email protected]; @stevemcgrath1
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