GKN Group has reported half-year profit before tax (management basis) up 14% to GBP393m (US$516m) (2016: GBP344m), helped by currency.
“We made progress in the first half and are on track for the full year,” said GKN chief executive, Nigel Stein. “We are performing well against our key markets, demonstrating once again the strength of our businesses, strong market positions and leading technology.
“We continue to invest for growth and have made significant progress to address our UK pension deficit.
“Our focus on innovation in key areas such as electrified drivetrains, additive manufacturing and Industry 4.0 is paying dividends and underpins our confidence in the longer term.
“2017 is expected to be another year of growth. Our reputation for technological leadership in our key markets, our focus on driving flexibility and productivity through our manufacturing plants and our market leading position in all three divisions mean we are well placed for the future.”
GKN Driveline organic sales grew 8%, significantly ahead of global auto production, helped by what the supplier says its a broad geographic footprint and increased content per vehicle.
Trading margin was 7.8% (2016: 7.9%, restated to include part of GKN Land Systems), with a good performance in Europe offset by lower margins in China, as expected and increased costs to support the high number of launches in the Americas.
Around GBP230m of annualised new and replacement business was won.