12th Dec 2005 07:00
GKN plc - Trading Update 12 December, 2005 After eleven months trading, the Group continues to make steady progress and ison track to achieve the expected Trading outcome for 2005.Automotive demand in the second half has been somewhat lower than expectedalthough Driveline's customer and model mix has limited its exposure to thesharp volume declines seen on some large North American SUVs. Aerospace demandhas remained strong. After a strong start to the year, OffHighway markets haveweakened slightly in the second half.High raw material and energy prices continue to impact performance and steelsurcharges, which had fallen in the first half, increased slightly thereafter.The restructuring programmes continue to run to plan with charges for the yearexpected to fall within the range previously indicated. Powder Metallurgy hascontinued to improve productivity enabling us to extend the previouslyannounced plant consolidation programme to further accelerate recovery. Thiswill result in asset write-downs of around ‚£25m in 2005 and a similar level ofadditional restructuring costs being charged in 2006. A move of production tolow cost regions is also expected to lead to further asset write-downs andimpairment charges of some ‚£20m in 2005 in other automotive businesses.The Group's Preliminary Results announcement will be on 28th February, 2006.For further informationGKN Corporate Communications+44 (0)20 7463 2354ENDGKN PLCRelated Shares:
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