GKN faces uncertain markets

Manufacturing News, Source : TheManufacturer.com
Published : 25 Nov 2002 11:24

Automotive and aerospace industry supplier GKN is facing a challenging and uncertain year, it said this morning.

After the first 10 months of 2002, profits at GKN are "now close to those for the same period last year" the company said today.

"Markets generally are performing as we expected", it went on. In Automotive, demand had remained steady, but there were signs of reducing output in the fourth quarter. Signs of an improvement in the Off Highway markets had not been sustained, but Aerospace Services were trading steadily, with strong demand in military aerospace markets mitigating a substantial downturn in the civil aerospace.

Automotive demand in the closing weeks of the year is always difficult to predict, but provided there is no sudden deterioration, the company's expectation is that the second half of 2002 will remain ahead of the same period last year and the outcome for the year as a whole should be "in line with market expectations".

However, the outlook for 2003 continues to be uncertain. In Automotive, the North American market is likely to weaken, and that European vehicle production will probably remain subdued. In Aerospace, GKN expects military markets to remain strong but does not expect any improvement in civil markets.

"In these market conditions and with reduced program activity levels in AgustaWestland and the previously advised increases in pension and interest costs, 2003 is expected to be a challenging year. Despite this, the restructuring actions effected during the first half of 2002, together with continuing organic growth, should result in another solid performance by the Group." GKN concluded.

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