GKN (LSE: GKN.L - news) , the car and aircraft parts maker, is expecting a strong 2013 driven by civil aerospace and international growth markets. <\/p>\n
The FTSE 100 engineering group beat City expectations for 2012, reporting record profits across its business despite a weak car market in Europe. <\/p>\n
Shares rose 4pc after group sales rose to 6.51bn last year from 5.75bn in 2011, while pre-tax profit jumped to 503m from 306m. <\/p>\n
The company is forecasting further progress in 2013 as a whole from its automotive business, but cautioned that lower market demand in Europe would likely have an impact on first-half results. <\/p>\n
The European market is soft and we dont expect that to change in the short term, said Nigel Stein, chief executive. <\/p>\n
He added: The [global] automotive sector is expected to grow this year by about 2-3pc. We expect to do slightly better than that as were strong in growth areas like China, North America, Mexico, India. <\/p>\n
The European car market shrank by 5pc in 2012, but grew by 17.6pc in North America as recovery continued, and by 5.8pc in China. <\/p>\n
Sales within GKNs Driveline business - its largest - rose 16pc to 3.2bn in 2012. <\/p>\n
The company was also upbeat about the prospects for its aerospace business, where it said it is benefiting from the rise in production of aircraft among its civil customers Airbus (Paris: NL0000235190 - news) and Boeing (NYSE: BA - news) . Commercial aircraft is expected to be around 70pc of GKNs aerospace business this year. <\/p>\n
That affords the company some protection from the military side which is under pressure from shrinking defence budgets, and which GKN expects to decline this year. <\/p>\n
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Originally posted here: <\/p>\n
GKN upbeat as civil aerospace and foreign markets drive growth<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" GKN (LSE: GKN.L - news) , the car and aircraft parts maker, is expecting a strong 2013 driven by civil aerospace and international growth markets. The FTSE 100 engineering group beat City expectations for 2012, reporting record profits across its business despite a weak car market in Europe. Shares rose 4pc after group sales rose to 6.51bn last year from 5.75bn in 2011, while pre-tax profit jumped to 503m from 306m Continue reading