GKN, the car parts and aerospace supplier, reported a 2 per cent rise in profits, and said that it expects good progress in 2012.
In the year to December, revenues rose 13 per cent to £5.7bn, as a 3 per cent increase in global vehicle production buoyed sales in GKN Driveline, the company’s biggest division, which makes car parts such as driveshafts, axles and transmissions.
Pre-tax profits rose from £345m in 2010 to £351m. However, GKN’s 2010 results were flattered by a one-off £68m credit which resulted from adjustments to its UK pension scheme.
On an adjusted basis, which takes into account joint ventures and changes in the value of derivative contracts, pre-tax profits rose 15 per cent to £417m.
Shares in the company fell 4.65 per cent and closed at 221.70p.
Overseeing his first results as chief executive, Nigel Stein said he was “pleased” with GKN’s performance. “As always, we’re looking ahead to next year and looking to do even better, but we think 2011 was a good year.”
Global light vehicle production is expected to rise about 5 per cent in 2012, which would boost GKN’s driveline and powder metallurgy divisions.
GKN also expects its aerospace division to grow, with an increase in civil aircraft production by Boeing and Airbus offsetting falling US demand for military aircraft.
GKN declared a final dividend of 4p, bringing the full year pay-out to 6p, up 20 per cent on 2010, and payable from earnings per share of 17.9p.