Demand improves for GKN
1 min read
The global automotive, aerospace and off-highway engineering business GKN said today (16 December) that overall demand in its major markets had been better than expected with profits for the year now likely to be somewhere between £70 million and £80 million.
In a trading update prior to its year end on 31 December the company said that its automotive business had been helped by government incentive programmes that provided some support for the sales of smaller light vehicles and improved production demand. Production of mid-sized vehicles, where GKN has greater exposure, had also increased in a number of markets as sales showed some signs of recovery and inventory levels stabilised. As a consequence, GKN's fourth quarter sales were now expected to show a good improvement compared with the third quarter.
The aerospace division continued to perform well, with military aircraft production remaining solid and no further material reduction in civil aircraft schedules. Sales for the fourth quarter are expected to be similar to the third quarter.
However, GKN OffHighway production in the fourth quarter remained significantly down at around 50% lower than the comparable period in 2008. Some signs of stabilisation in sales were evident at levels slightly ahead of those seen in the prior three months.
The company said that good progress was being made with the restructuring programme it announced at the time of its half year results in August and will result in 3,600 fewer employees by next year.
