GKN profit rises, sees strong end of year

Industrials group GKN said third quarter profit rose 14 per cent, helped by strong growth at its automotive, agriculture and metals divisions.

GKN, which produces auto components as well as airframes for planemakers Airbus and Boeing, today reported a pretax profit of £100m on sales 11 per cent higher at £1.48bn in the three months to the end of September.

The figure does not include a £23m hit GKN took relating to costs incurred by an explosion at its plant in Gallatin, Tennessee in May, which killed two people.

“Macroeconomic uncertainty has increased in recent months, although no significant deterioration has been experienced in GKN’s order books,” the company said in a statement.

“On the basis of current market conditions, we therefore expect the group to continue to perform strongly through the fourth quarter . overall we continue to expect 2011 to be a year of strong progress, with the group well positioned for growth in 2012 and beyond.”

Shares in GKN, which have fallen 14 per cent in the last three months, closed at 195.10 pence yesterday, valuing the company at around £3.1bn.