23rd Feb 2016 07:29
LONDON (Alliance News) - GKN PLC on Tuesday said its pretax profit rose in 2015 and its revenue grew thanks to the acquisition of Fokker Technologies, prompting it to increase its dividend.
The FTSE 100 engineering group, which makes driveline systems for cars and aerospace parts, said pretax profit for the year to the end of December rose to GBP245.0 million from GBP221.0 million a year earlier.
Revenue was up to GBP7.23 billion in 2015 from GBP6.99 billion, helped by the acquisition of Dutch aerostructures manufacturer Fokker, which was completed in October, but also good performances in GKN's Automotive and Aerospace units. Those divisions helped to offset a weaker performance for its Land Systems business, which is trading in a tough agricultural market environment.
GKN said it will pay a final dividend of 5.8 pence per share, up from 5.6p a year earlier, meaning its total dividend will rise 4.0% to 8.7p from 8.4p.
The company said that while the economic backdrop is uncertain in some of its markets, and it expects Land Systems sales will remain under pressure, it is confident on its outlook for 2016, helped by the acquisition of Fokker and solid performances in its Aerospace and Automotive units.
"GKN continued to make progress in 2015 and delivered on our expectations. 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," said Nigel Stein, GKN's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
GKN PLC