Profits boosted at GKN
Redditch-based GKN has recorded a pre-tax profit of £107m for the first quarter of 2011, representing an increase of more than 50 per cent on its comparable 2010 result. However, despite a positive revenue boost, the engineering company said that the natural disasters which occurred in Japan last month have had “some impact” on the automotive sector.
Trading profit was up 42 per cent to £119m. Alongside an increase in pre-tax profit, the company recorded a 14 per cent rise in sales, which hit £1.48m for the period.
GKN said that global light vehicle production increased by about 4 per cent in the first quarter to 19.4 million vehicles.
In a statement, the company said it expects “some continuing short term impact” from disruption in the Japanese automotive market and from supply chain shortages to customers outside of Japan.
Sir Kevin Smith, chief executive of GKN, said: "GKN made good progress in the first quarter and I expect this to continue. GKN has excellent new products and technologies which are aligned with our customers' desire to have smaller, lighter and stronger components and systems, offering improved efficiency, lower fuel consumption and greater environmental benefits. Our four divisions are well placed to achieve a period of sustainable growth and margin improvement."
