GKN share price: Group posts flat aerospace sales in Q1
GKN (LON:GKN) has this morning updated investors on its recent trading, posting flat sales in its Aerospace division.
**Highlights from GKN’s statement:**
The Group’s principal markets have performed in line with the expectations set out in our February results announcement. Management sales for the three months ended 31 March 2016 were £2,179 million (2015: £1,943 million). This 12% increase comprised 1% organic growth, 8% acquisition growth and 3% beneficial currency translation. Our Automotive businesses continue to outperform the market and our Aerospace business has traded in line with our expectations, against a strong comparative period. Land Systems’ markets remain tough.
Group trading margin is lower than last year primarily due to a reduction in GKN Aerospace as a result of lower military sales, the mix of new and mature programmes and the absence of last year’s one-off benefits. The inclusion of Fokker Technologies (“GKN Aerospace Fokker”) increased profit but reduced trading margin.
Operating cash flow was similar to the equivalent period last year.
GKN Aerospace sales in the first quarter of £767 million (2015: £589 million) were in line with our expectations, being flat on an organic basis against a strong comparator period in the prior year. In commercial aerospace, the planned production ramp-up of new aircraft is more than offsetting cuts in the A330 programme. Military sales were lower than the prior year, reflecting the continuing decline of mature programmes, mainly the F/A-18 Super Hornet and UH-60 Black Hawk helicopter.
Nigel Stein, Chief Executive, GKN plc, commented:
“Our overall performance in the first quarter was in line with our expectations. With end markets delivering as forecast and customers continuing to award us good levels of new and repeat business, we expect to grow in 2016 and beyond, helped by the contribution from Fokker, whose performance and integration is on track.”
As of 07:18 BST, Wednesday, 20 April, GKN plc share price is 295.70p.