21st Oct 2014 06:36
LONDON (Alliance News) - Engineering group GKN PLC Tuesday reported higher pretax profit for the third quarter, as higher trading margins in its aerospace business offset a decline in sales that was caused by the strength of sterling.
In a statement, the company reported a pretax profit of GBP139 million for the three months to end-September, up from GBP131 million a year earlier, even though revenue declined to GBP1.79 billion, from GBP1.87 billion, due to the strength of sterling. Its overall trading margin improved to 8.9%, from 8.2%.
It said the revenue figure represented a 3% organic increase, offset by a GBP119 million or 6% hit due to sterling's strength against most major currencies. Divestments also knocked GBP15 million off sales.
"We see little change in our markets for the remainder of the year. The automotive market is forecast to remain positive with a lower rate of growth in the final quarter. Aerospace markets are robust whilst the agricultural equipment market looks set to continue its recent decline," GKN said.
"Looking forward to the rest of the year, tougher prior year comparators mean that organic growth is likely to be more modest but we expect our market leading positions, advanced technology and extensive global footprint to make 2014 another year of progress," Chief Executive Nigel Stein said.
By Steve McGrath; [email protected]; @stevemcgrath1
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