Engineers GKN beat forecasts

UK engineering group GKN today cheered investors by announcing better-than-expected profits and strong aerospace markets.

While pre-tax profits fell 2% to £42m (€60.5m) in the six months to June 30, analysts said the results were marginally ahead of what they had expected from GKN, which announced a 10% fall in profits in February.

The Redditch-based group, which is involved in the aerospace, defence and automotive markets, described the figures as solid given the current turbulence in automotive markets.

It said all its major businesses had made progress, with particularly encouraging results in aerospace and its driveshaft division. GKN shares were up by more than 4% today.

Global raw material prices would continue to affect the group’s automotive operations, but their performance was expected to improve.

Chief executive Kevin Smith said the outlook for the rest of the year in its major markets remained unchanged.

“We see no reason at this stage for changing our expectations for the group’s trading performance for the year,” he said.

As well as parts for civil airliners, including the new Airbus A380 superjumbo, GKN is involved in military aircraft, with contracts to make parts for the F-35 Joint Strike Fighter, a next-generation jet fighter designed for the US Air Force, Marine Corps and Navy and for the Royal Air Force, and the F-15 jet fighter.