TIDMGKN 
 
GKN plc 
Trading update 
26 April 2017 
 
 
GKN plc, the global engineering business that serves the aerospace and 
automotive markets, today issues a trading update for the period since 1 
January 2017. 
 
Group Results(1) 
 
Overall in the first quarter, the Group achieved good organic sales growth as 
well as continuing to benefit from currency translation, with the automotive 
market performing better than expected and growth in aerospace being slightly 
slower than planned. 
 
Group trading margin has moved ahead of last year primarily due to an increase 
in GKN Driveline, although it and GKN Powder Metallurgy are seeing an impact 
from higher raw material costs. GKN Aerospace is tracking in-line with plan. 
Operating cash flow was similar to the equivalent period last year. 
 
Divisional Performance 
 
GKN Aerospace 
 
GKN Aerospace sales in the first quarter increased modestly on an organic 
basis. As expected in commercial aerospace, the production ramp-up of new 
aircraft is slightly more than offsetting cuts in the A380, Boeing 777/747 and 
business jets. Military sales were up compared to the prior year, reflecting 
the ramp-up of the F-35 Lightning II and stable production levels in older 
programmes. 
 
GKN Driveline 
 
GKN Driveline delivered good first quarter sales ahead of global industry 
production rates that were up 6%. External forecasts continue to expect full 
year global auto production to increase by only 2%, with Europe and North 
America down in the second quarter. China continues to experience robust 
demand. 
 
GKN Driveline's constant velocity joints (CVJ) business has made a strong start 
to the year across all geographies. We continue to make good progress in 
winning new all-wheel drive (AWD) business particularly in China and the US, 
although strong demand on the programme in the US that caused additional costs 
in 2016 is slowing our ability to make all the changes necessary to fully 
eliminate those costs. We continue to invest and make progress across our eAxle 
development programmes. 
 
GKN Powder Metallurgy 
 
GKN Powder Metallurgy's organic sales growth was in line with global auto 
production rates and it also benefited from currency translation and the 
acquisition of the powder manufacturer in China, in 2016. The growth included 
the direct pass through of higher raw material prices which also had the effect 
of reducing margins slightly. 
 
On 17 April 2017, GKN Powder Metallurgy announced that it has agreed to acquire 
Tozmetal Ticaret Ve Sanayi AS ("Tozmetal"). Tozmetal is a Turkish sinter metal 
component manufacturer with 2016 sales of EUR24 million. Completion of the 
acquisition is subject to approval from the relevant merger control 
authorities. 
 
Summary 
 
Nigel Stein, Chief Executive, GKN plc, commented: 
 
"GKN delivered a good performance in the first quarter. The encouraging growth 
rate achieved to date may not be sustained as the year progresses and 
comparators get tougher, nevertheless we expect 2017 to be another year of 
growth." 
 
 
 
Half year results announcement 
 
The first half results will be announced on 26 July 2017. 
 
 
 
Trading update call 
 
There will be a call for analysts and investors at 08:15am today (26 April). 
Dial in details are: 
 
        Direct dial:                   +44 (0) 203 139 4830 
        Conference ID:             28403856# 
 
Participants joining the call from outside the UK can find a local number in 
the following file: 
http://events.arkadin.com/ev/docs/NE_FEL_Events_International_Access_List.pdf 
Conference ID as above. 
 
A replay of the conference call will be available on the Group's website: 
http://www.gkn.com/investorrelations/Pages/results-and-presentations.aspx 
 
 
GKN plc LEI: 213800QNZ22GS95OSW84 
 
 
Note 
 
(1) Financial information set out in this announcement, unless otherwise 
stated, is presented on a management basis which aggregates the sales and 
trading profit of subsidiaries with the Group's share of the sales and trading 
profit of equity accounted investments. References to trading margins are to 
trading profit expressed as a percentage of sales. Where appropriate, reference 
is made to organic results which exclude the impact of acquisitions/divestments 
as well as currency translation on the results of overseas operations. 
 
 
 
Further information: 
 
Analysts/Investors: 
 
Guy Stainer 
Investor Relations Director 
GKN plc 
T: +44 (0)207 463 2382 
M: +44 (0)7739 778187 
E: guy.stainer@gkn.com 
 
Media: 
 
Nicola Foster 
Head of Group Communications 
GKN plc 
T: +44 (0)1527 533495 
M: +44 (0) 7795 618320 
E: nicola.foster@gkn.com 
 
 
Cautionary Statement 
 
This announcement contains forward looking statements which are made in good 
faith based on the information available at the time of its approval. It is 
believed that the expectations reflected in these statements are reasonable but 
they may be affected by a number of risks and uncertainties that are inherent 
in any forward looking statement which could cause actual results to differ 
materially from those currently anticipated. Nothing in this document should be 
regarded as a profits forecast. 
 
 
Notes to Editors 
 
GKN plc is a global engineering group. It has three divisions; GKN Aerospace, 
GKN Driveline and GKN Powder Metallurgy, which operate in the aerospace and 
automotive markets. Over 58,000 people work in GKN companies and equity 
accounted investments in more than 30 countries. GKN plc is listed on the 
London Stock Exchange (LSE: GKN) and recorded sales of GBP9.4 billion in the year 
to 31 December 2016. 
 
 
 
END 
 

(END) Dow Jones Newswires

April 26, 2017 02:00 ET (06:00 GMT)