Aerospace and automotive parts maker GKN, one of the UK’s largest manufacturers, announced a rise in profits for the first half of 2014 despite seeing its sales affected by the strength of the pound.
Profits were posted in line with expectations at £224m in the six months up to June 30, marking a 76% increase in pre-tax profits.
This was despite revenue falling by 2% to £3.57bn, a move attributed to the strength of the pound which shaved £247m off the sales figure.
The company saw its highest growth levels in its Driveline business, which increased by 11%, while its aerospace division reported a 5% rise in commercial orders offsetting a 2% drop in the military sector.
This was in contrast to its land systems operation manufacturing industrial engine parts, which saw a 9% slide in sales.
Nigel Stein, GKN chief executive officer, said he is optimistic going into the second half of the year.
“We have continued to outperform our key markets and report good underlying financial results in spite of sterling’s strength and some end market weakness–we expect these trends to be maintained in the second half,” he said.
