Sales are now at £800 million (£598 million in 2009), up 28% on an underlying basis. The trading profit was £55 million (£14 million in 2009). Overall, the automotive trading margin was 6.9%, with the powder metallurgy trading margin at 7.9% and Driveline at 6.6%.
In all, the group’s sales in the three months ended 30 September 2010 totalled £1 336 million, a 21% increase over the comparable period in 2009. This increase is reportedly due to favourable currency translation and acquisitions, which increased sales by £40 million and underlying sales by 17%. Third quarter trading profit was £100 million, a 92% increase over the comparable period in 2009, or an 87% underlying increase. The Group’s profit before taxation was £88 million, while net debt at 30 September 2010 was £212 million (£202 million at 30 June 2010).
According to GKN, overall demand in the automotive sector during the third quarter remained at similar levels to the second quarter, with a reduced European seasonal decline and continued strong demand in North America and Asia.
The outlook for GKN’s markets in the fourth quarter remains positive with group sales expected to be at a similar level to the third quarter, the company reported, forseeing “another solid quarter” for the Driveline and powder metallurgy businesses.
The group intends to issue its full year results announcement on 1 March 2011.