- Group results reflect the continued strong organic growth and the contribution from acquisitions
- Record profits achieved in all four divisions
- Sales increased 13%, up 6% on an organic basis
- Management trading (operating) profit up 19%
- Trading margin improved to 8.1%
- Profit before tax up 19%
- Return on average invested capital of 18.1% (excluding Volvo Aero)
- Earnings per share up 17%
- Final dividend of 4.8 pence per share, giving a total for 2012 of 7.2 pence per share, a 20% increase
- Reported profit before tax of GBP588m (2011: GBP351m)
- Positive free cash flow of GBP213m (2011: GBP147m), excluding Volvo Aero
- Net debt of GBP871m (2011: GBP538m), reflecting the acquisition of Volvo Aero
|Organic sales growth||Trading margin
|GKN Powder Metallurgy||874||845||7||10.0||8.5|
|GKN Land Systems||933||885||1||9.4||7.6|
(1) GKN Aerospace excludes the fourth quarter contribution from Volvo Aero.
(2) 8.4% excluding Volvo Aero
The table does not include other businesses (cylinder Liners and Emitec).
- GKN Driveline continued its expansion in Mexico and also in China, where output reached a record 12m driveshafts in the year
- Growth above the market with additional business wins in Constant Velocity Jointed (CVJ) Systems
- Integration of Getrag Driveline Products completed and good progress made in all-wheel drive (AWD) new business wins, including the design and build of a complete AWD system for three customers
GKN expects 2013 overall to be a year of good progress for the group.
In automotive, external forecasts suggest that global light vehicle production should grow around 2% with increases in Asia and North America but Europe down.
Against this background, GKN Driveline and GKN Powder Metallurgy are expected to show further improvement in 2013 overall. However, the first half results will be impacted by lower market demand in Europe and, recognising that the market is unlikely to recover for some time, actions are being taken to reduce the fixed cost base. Restructuring charges, primarily in the first quarter, are expected to be GBP16m in GKN Driveline and GBP5m in GKN Powder Metallurgy.
The performance of GKN Land Systems is expected to be broadly flat for 2013 as a whole, with the first few months more challenging due to weaker European industrial and passenger vehicle markets. European and North American agricultural equipment markets are expected to remain robust.
Overall, the group's broad exposure to global markets, strong customer positions and healthy order books mean that GKN should make good progress in 2013, benefiting from the full year contribution from Volvo Aero.