“Trading conditions in the first four months of the year have been in line with the broadly stable outlook we reported in February.
In Automotive, North American and European production volumes have run at a similar level to last year, with growth seen in Asia Pacific markets, particularly China, benefiting our joint ventures in the region.
OffHighway markets, although steady, are slightly below that seen in last year’s very strong first half.
Aerospace markets remain strong with higher civil demand and military programmes broadly unchanged.
However, raw material and energy costs have seen increases in recent weeks to levels somewhat above those anticipated in February with little signs of any easing in the short term.
Against this background, the Group has made a solid start to the year, with trading profits to April slightly above the level of the equivalent period last year, even after absorbing charges for redundancies announced earlier this year in the UK Cylinder Liner business.
Looking ahead, whilst risks still remain, particularly in North American automotive markets, our expectations for the year as a whole remain as reported in our February Outlook Statement. 2006 should be a year of continuing progress for GKN, with the further benefits of the on-going strategic restructuring programme still expected in 2007.”
Enquiries:
GKN Corporate Communications
020 7463 2354