UK-based supplier GKN said in a trading statement it had “made good progress in the three months ended 30 September 2013” after sales rose 16% year on year to GBP1,865m.
Third quarter trading profit increased from GBP113m last year to to GBP152m “as a result of improved profitability in the underlying business and a GBP21m contribution from GKN Aerospace Engine Systems”. Pre-tax profit rose 34% to GBP131m.
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“Market conditions and the group’s performance in the third quarter have been consistent with expectations at the time of our 30 July 2013 statement,” GKN said. Noting that its aerospace results had been mixed, GKN said global light vehicle production increased 4% “with good growth in China and North America whilst Europe and Japan improved slightly”. Weakness in construction and industrial markets continued while agricultural equipment demand remained broadly flat.
Outlook
“Automotive and commercial aerospace markets are expected to remain robust with industrial and military aerospace markets soft,” the supplier added. “As previously stated, the group expects 2013 overall to show another year of good progress helped by the contribution of GKN Aerospace Engine Systems.”
Chief executive Nigel Stein said: “The third quarter showed good progress, supported by automotive demand in China and North America and sustained high output levels in commercial aerospace.”
