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]

Topics: gkn

If you liked the article, share on:

Comments

Recommended

South Korean carmaker Kia will try to follow up the success of its Sportage compact sports utility vehicle by introducing a smaller SUV (subcompact) in the United Kingdom in the...
by - October 18, 2017
It can no longer be denied that Jaguar Land Rover wants to design some more hardcore type versions of their SUV range --- soon after launching the Discovery SVX only...
by - October 18, 2017
Motorists in the United Kingdom who intend to purchase the new 2018 Hyundai Kona subcompact sports utility vehicle could start placing their orders on November 2, 2017. Marked by Hyundai...
by - October 18, 2017
For many years, Lamborghini has always relied on the use of large and powerful engines including the V10 and the V12. In fact, the company’s very first engine in the...
by - October 17, 2017
You can now get the Opel Crossland X that’s LPG-powered if you are not a fan of diesel. Recently, the company released their version of the Peugeot 2008 equipped with...
by - October 17, 2017
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