GKN trading year-to-date buoyed by strong US dollar

In the period running up to 5 May GKN saw trading conditions which were in-line with the guidance provided by the firm in February.

However, while trading in the automotive business “outperformed” the principal market of its Land System’s unit remained “tough”.

Trading in the Aerospace arm was in-line with expectations.

Total management sales increased by 1% on an organic basis to reach £1.94bn, with positive currency tailwinds offset by the negative impact from disposals.

Positive currency effects on margins

The company’s results, especially in Aerospace, benefitted from the weakening in sterling versus the US dollar but stronger pound against the euro hit its Driveline and Land Systems units.

Aerospace sales rose to £589m, while increasing by 3% at GKN Driveline to £912m, by another 3% at GKN Powder Metallurgy to reach £244m but declining to £187m at the Land Systems division.

Group trading margin was buoyed slightly by currency fluctuations, despite the decline in Land Systems.

Operating cash generation was lower than in the year-ago period due to the timing of investment programmes to support growth, the company said.