GKN expects to offset currency effects with higher gains in 2014

Article by Eugene Conan, on February 28, 2014

After reporting a 17-percent surge in underlying pretax profit of EUR578 million ($961.25 million) in 2013, British supplier GKN expects higher gains this year that would offset the effect of a weak dollar versus the pound. GKN expects its auto business to grow at a faster rate than an anticipated 3 percent gain in the market this year.

The company added that its aerospace unit would post higher sales in 2014. GKN was able to exceed a company-supplied consensus forecast of GBP565 million, thanks to a strong performance in its automotive business, which accounted for about 45 percent of sales.

"The dollar is going to be a headwind. It's been a tough start," GKN chief executive Nigel Stein said, noting that a 1-percent move in the dollar would have around a GBP4 million ($6.65 million) impact on profit. He, however, expressed confidence that GKN could offset that.

"This should be outweighed by the benefits from the group's diverse exposure to global markets, strong customer positions and healthy order books," Stein added. Shares in GKN dropped over 2 percent a day after results were published. Analysts attributed the drop partly to the stock's strong run as the shares have surged 11 percent since the start of 2014 and 64 percent in the last 12 months. [source: Reuters]

Topics: gkn

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

A big chunk of Volvo Cars’ legacy in developing the most durable and capable car is evident in its latest Cross Country collection. Suffice it to say, our planet has...
by - September 21, 2016
Just very recently, we were all delighted to finally see a Bugatti Chiron out in the streets casually hanging around Cannes in France. The said car was purchased by a...
by - September 9, 2016
Earlier this year, Aston Martin wowed the world with a stunning concept car – the Vanquish Zagato. The concept made its first appearance in May during the Concorso d’Eleganza Villa...
by - September 7, 2016
Lamborghini has always been known to be the home to exotic supercars. The Italian automaker’s production facilities have hosted uniquely designed and powerful show-stopping supercars. It all started with the...
by - September 5, 2016
Have you ever heard of the name Kris Singh? If you’re passionate about cars, you’ve probably come across this name at some point while you scour reports about the latest...
by - September 2, 2016