6th May 2015 06:34
LONDON (Alliance News) - Aerospace engineer GKN PLC Wednesday said sales rose 1% in the first quarter of 2015, as a benefit from the strengthening of the US dollar against sterling was largely offset by disposals, and its trading margin was also up thanks to the exchange rate movement boost.
In a trading update, the maker of wings and parts for Airbus aircraft said its main markets performed in line with expectations in the three months to end-March, with its automotive business continuing to outperform, its aerospace unit meeting the company's hopes, while its Land Systems business continued to face challenging agricultural markets in North America.
It said management sales in the quarter were GBP1.94 billion, up from GBP1.92 billion a year earlier, while trading margin was slightly ahead of last year as a boost from the dollar's rise against the pound was offset by a decline in the Land Systems business.
Sales in the company's auto business, GKN Driveline, rose 3% to GBP912 million from GBP885 million, while aerospace sales rose to GBP589 million from GBP546 million. Sales in its powder metallurgy business rose to GBP244 million from GBP237 million, but sales in the Land Systems business fell to GBP187 million from GBP217 million.
"The Agricultural market, particularly in North America, remains soft and we do not anticipate
any improvement in this market in 2015. We are mid-way through the previously announced restructuring programme," it said.
GKN will publish its results for the first half of the year on July 28.
By Steve McGrath; [email protected]; @stevemcgrath1
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