GKN expects to offset currency effects with higher gains in 2014

Article by Anita Panait, 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]

If you liked the article, share on:

Topics: gkn

Comments

Recommended

The 2018 Consumer Electric Show is full of exciting new technology for everyone, including the automotive industry. One of the most anticipated is the unveiling of the Linux-based MBUX that...
by - January 22, 2018
With all the photos Mercedes-Benz has been posting of the new 2019 G-Class, not one of those featured the SUV in a light exterior finish, as they were all in...
by - January 22, 2018
When you first glance at the Rhino GX SUV, the first thing that will come to mind is that the vehicle probably has a military style cabin, with thinly padded...
by - January 22, 2018
The Chinese market will soon be getting the exclusive China-only model, Mercedes-Benz GLC-L, for a premium of 15,000 yuan ($2,300) more than the regular model. The difference is actually quite...
by - January 20, 2018
The Bentley Bentayga is set to participate in the famous Pikes Peak International Hill Climb that is slated to take place on June 24th in Colorado. The automaker’s motorsport department...
by - January 19, 2018
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries