GKN posts 4% drop in 1st quarter pretax profit to £119 million

Article by Anita Panait, on April 19, 2013

GKN logged a 4-percent cut in pretax profit in the first quarter of 2013 to £119 million ($181.3 million), due to a restructuring charge as well as the declining vehicle production in Europe, Japan and India. According to the British engineering group, its profits were badly affected in part by a £23-million restructuring charge related to job cuts in Europe and Japan.

The UK supplier’s trading margin dropped 0.7 percentage points to 7.4 percent. Profits at its Driveline division, which manufactures vehicle components like driveshafts, chassis and axles, succumbed to a 20-percent drop after suffering from weak demand, especially in continental Europe. Driveline, whose customers include Volkswagen, General Motors Co. and Ford Motor Co., accounts for around 55 percent of GKN’s total profits.

Margins at Driveline dropped to 6 percent in the first three quarters of 2013 from 7.6 percent in the same period in 2012. This could be attributable to the slumping demand for new vehicles in Europe as consumers try not to make expensive purchase while the current economic crisis in the region continues.

In contrast, the US market is going strong while the Asia market remains volatile. Vehicle sales in Europe have dropped 9.7 percent in the first quarter of 2013, forcing some carmakers to reduce their 2013 expectations.

Topics: gkn, profit

If you liked the article, share on:

Comments

Recommended

The Nurburgring is the one track that many automakers want to hold a record of, because only the best of the best do. This time, a group of extraordinary passionate...
by - July 25, 2017
Would you like your convertible to be inspired by a yacht? Well, you do not have to imagine it anymore - thanks to the Bentley Continental GT Convertible and Mulliner...
by - July 25, 2017
The 2018 Jaguar E-Pace is the leaping cat’s first venture into the compact SUV segment, and sure enough, it didn’t take long before an artist rendered a wilder version of...
by - July 25, 2017
Good news for Audi EU5 and EU6 diesel car owners in Europe. They can now update their cars to fit six-cylinder or eight-cylinder TDI engines through a retrofit program, and...
by - July 25, 2017
Recently, Autocar revealed that a Ferrari SUV is on the way, after the company continuously denied that they will not build one. And unlike the usual crossover styling, Ferrari will...
by - July 25, 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