Auto sector tough for GKN

Short-time working arrangements had been negotiated and implemented worldwide, the company said in a trading update. All GKN's automotive plants were working short time and implementing additional shut-down periods. In addition, further restructuring actions were being implemented during 2009. “This programme of actions, which remains in part under review as the market outlook is still uncertain, will comprise significant short-time working/plant shutdowns, selected headcount reduction programmes and further structural rationalisation of elements of our manufacturing footprint and invested capacity,” the update stated. On its performance for the year ended 31 December, GKN said revenues for the year were expected to be up by around 12% and pre-tax profit is expected to be towards the higher end of the range of £150 million to £170 million. Conditions in global automotive markets had continued to deteriorate with activity levels for the last two months of the year in the automotive business down about 30% compared with the prior year. “Our Automotive business was loss making in both November and December,” the company said. Aerospace markets remained strong, although there were signs of softening in the final quarter. OffHighway markets continued to trend in line with expectations with construction and industrial markets “softening considerably” and agricultural equipment demand “remaining robust”. The company, which is headed by Sir Kevin Smith (pictured), said it intended to provide more detail on 2008 performance and 2009 plans in its annual results announcement on 26 February.