20th Apr 2016 06:18
LONDON (Alliance News) - Engineer GKN PLC on Wednesday said trading in the first quarter was in line with its expectations, though its trading margin took a hit from an adverse shift in the revenue mix for its aerospace arm.
The FTSE 100-listed company, which makes airframe structures and automotive driveline systems, said sales in the three months to the end of March hit GBP2.18 billion, up from GBP1.94 billion a year before. Organic sales grew 1.0% and the group got a 3.0% boost from beneficial currency moves, but the majority of the rise was driven by acquisitions.
GKN said its Automotive division performed well in the quarter and its Aerospace business met expectations, though its trading margin has taken a hit from lower military sales, a mix of new and mature programmes, and the absence of one-off benefits booked in 2015 for the Aerospace unit.
GKN said its Land Systems business, which makes power-management products for the agricultural, construction and mining industries, continues to trade against a tough market backdrop and saw sales marginally decline in the quarter due to lower agricultural equipment revenue.
"Our overall performance in the first quarter was in line with our expectations. With end markets delivering as forecast and customers continuing to award us good levels of new and repeat business, we expect to grow in 2016 and beyond, helped by the contribution from Fokker, whose performance and integration is on track," said GKN Chief Executive Nigel Stein.
By Sam Unsted; [email protected]; @SamUAtAlliance
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