GKN hits sales of £2.7bn
Aircraft components giant GKN has announced an increase in sales of 25 per cent to £2.7bn for the first six months of the year.
The Redditch-based company has seen one if its strongest ever periods with long-term aero engine contract wins totalling more than $1bn.
It also revealed a trading profit of £202m, up £177m from its 2009 result, and a pre-tax profit of £175m, compared to £6m in the first half of 2009.
Sir Kevin Smith, chief executive of GKN, said: "GKN's recovery has moved into another gear and we are continuing to build on our global market-leading businesses. The first half trading environment has seen an improving trend for GKN's Driveline, Powder Metallurgy and Land Systems businesses whilst the Aerospace market has continued to hold up well.
“The benefits of our restructuring actions have enabled us to improve our margins and the continued focus on cash generation has resulted in a significant improvement in the net debt position. As a result, and with a more positive outlook, we are pleased to be able to recommence payment of a dividend at this half year stage.”
The company has decreased its net debt in the period to £202m, down from £300m in December 2009.
GKN has recently secrured several multi-million pound deals, including two contracts worth a collective £600m to make parts for Rolls-Royce and General Electric (GE) aircraft engines.
The firm signed a £300m deal to make tail bearings for two Rolls’ Trent engines at its plant in California until 2020 and also won a five-year deal for the same fee to supply components for both commercial and military aircrafts for GE Aviation.
GKN companies employ approximately 38,500 people in 30 different countries.
