GKN Share Discussion Threads

[alphahunter] 19/10/2011 15:18

Broadwood,

Your last but one comment, which broker is that? Cheer.

[broadwood] 19/10/2011 11:41

Shares in GKN top Britain's FTSE 100 fallers' list, off 4.1 percent, going into reverse after a strong run as the car and plane parts maker issues a trading update which analysts say is sound, but express some concern over both a slowdown in demand in some end markets and its profit margins.

"Picking through the detail, I guess what may have spooked the market are comments where they're talking about some softening in market demand," Andrew Gollan, analyst at Investec Securities, says.

He refers to the fact that while GKN issues a "robust" update, in line with expectations, which the market "should take comfort in", it mentions demand for its Driveline business in Brazil and India has softened.

"It doesn't take much to send the price moving a long way from where it was yesterday," Gollan says, repeating a "buy" rating on the stock.

Evolution Securities analyst Harry Philips, meanwhile, who also repeats "buy" advice on the stock, says: "Autos margins were a little disappointing at 6.7 percent, which we saw coming in at 7 percent plus."

"I'd prefer to see top line growth that dilutes the margin because of a ramp up in some programmes which will be profitable down the road," adds Philips.

The company posts a 14 percent rise in pretax profit to 100 million pounds ($156.3 million) on sales 11 percent higher at 1.48 billion pounds in the last three months.

Shares in GKN had jumped about 24 percent off a lows hit on Oct. 4 up until Tuesday's close.

[broadwood] 19/10/2011 11:37

At this stage this third quarter statement serves to underpin existing forecasts for 2011. However, the macroeconomic comments together with the softer divisional margins in some areas do suggest continued nervousness about the future prospects into 2012, especially in relation to the weaker European small car sales and margin drag at aerospace. We continue to believe that the risks to forecasts remain to the downside and therefore although a 2012 PE of 6.8 times looks unchallenging we retain our reduce rating.

[ignoble] 19/10/2011 11:23

Typical market ...why can't they see the positives ...ho-hum.

[alphahunter] 19/10/2011 11:22

Markets spooked by the trading margin in Auto?

[mj19] 19/10/2011 10:57

lovely market dont like em

[broadwood] 19/10/2011 10:28

Can't see much wrong here - buying opportunity?


Wednesday 19th October 2011, 8:30am
ENGINEERING
HARRY BANKS
Industrials group GKN said third quarter profit rose 14 per cent, helped by strong growth at its automotive, agriculture and metals divisions.

GKN, which produces auto components as well as airframes for planemakers Airbus and Boeing, reported a pretax profit of £100m on sales 11 per cent higher at £1.48bn in the three months to the end of September.

The figure does not include a £23m hit GKN took relating to costs incurred by an explosion at its plant in Gallatin, Tennessee in May, which killed two people.

"Macroeconomic uncertainty has increased in recent months, although no significant deterioration has been experienced in GKN's order books," the company said in a statement.

"On the basis of current market conditions, we therefore expect the group to continue to perform strongly through the fourth quarter . overall we continue to expect 2011 to be a year of strong progress, with the group well positioned for growth in 2012 and beyond."

[robcoo] 19/10/2011 10:08

Sounds pretty psoitive to me:

"On the basis of current market conditions, we therefore expect the Group to continue to perform strongly through the fourth quarter.

Overall we continue to expect 2011 to be a year of strong progress, with the Group well positioned for growth in 2012 and beyond."

Market has over recated

[ignoble] 19/10/2011 08:51

I'm comfortable with 'em ...

[mj19] 19/10/2011 08:45

what do u make of the numbers update guys?

[rogerrail] 17/10/2011 16:35

Jefferies maintian buy recommendation with 240p target price:

[gumberr] 17/10/2011 09:04

GKN to buy EU and drive the markets!

[jbarker5555] 16/10/2011 22:11

Gumberr to takeover GKN?! :)

[ignoble] 14/10/2011 14:27

C'mon , Baby ...nearly there

[gumberr] 14/10/2011 09:37

Slovakia to takeover GKN?

[ignoble] 14/10/2011 09:34

Go Baby, Go !

[ignoble] 12/10/2011 10:22

behaving rather well again ...are we going to have the price starting with a 2 again ?
That would do nicely

[lyntwyn] 12/10/2011 10:06

it'll be at .05p per share then

[gumberr] 10/10/2011 15:07

Greece to takeover GKN?

[electronica] 10/10/2011 12:45

GKN makes it's largest auto component sector profits at the top end of the market. So I find today's news from Dow Jones particularly encouraging .......

"Luxury Car Sales Continue To Surge Despite Economic Woes

By Christoph Rauwald
Of DOW JONES NEWSWIRES

FRANKFURT (Dow Jones)--Luxury car sales continued to surge in September despite swirling sovereign-debt problems and economic concerns in several major markets, with robust sales volumes suggesting that BMW AG (BMW.XE), Daimler AG (DAI.XE) and Volkswagen AG's (VOW.XE) Audi brand are poised to report solid third-quarter earnings growth.

"We made solid gains right across the globe and once again achieved record sales for September, which contributed to a record third quarter," BMW sales chief Ian Robertson said Monday in a statement.

He said the Munich-based firm is "well on course to deliver our target of more than 1.6 million vehicles in 2011" for its BMW, Mini and Rolls-Royce brands, which would represent a new annual sales record for the group. It expects to remain the world's best-selling premium auto maker ahead of its German rivals Audi and Daimler's Mercedes-Benz marque this year.

Robertson said the new-generation of BMW's compact 1-Series and a new coupe at its Mini brand are expected to provide further sales momentum in coming months.

Global sales for the company's core BMW brand rose 9.3% year-on-year to 128,446 cars from 117,471 last year, driven by strong demand for the compact sports-utility-vehicles X3 and X1. In the January-to-September period, the brand's sales were up by 15% at 1.02 million cars after 892,729 vehicles in the same period last year.

BMW's sales figures were mirrored by Volkswagen's Audi premium brand.

Audi said Monday that global sales rose 17% on the year in September to 120,200 cars from 102,672 in the same month last year, and were also up 17% in the first nine months of the year at 973,200 after 829,281 cars in 2010. Audi benefited from its strong footprint in the dynamic Chinese market, where sales increased by 33% to 29,476 cars last month from 22,125 vehicles in September last year. It also posted sales gains in some of the countries facing tough austerity measures such U.K. and Spain.

Last week, Daimler's Mercedes-Benz brand posted 120,982 car sales for September, up 2% from 118,559 in 2010. Year-to-date, Mercedes-Benz sales were up 7.6% at 919,288 cars after 853,987 vehicles in the prior-year period.

"We will continue to grow in the fourth quarter as well, so we are on track to make 2011 the most successful year in our company's history," Mercedes-Benz sales chief Joachim Schmidt said.

Shares of automakers and their suppliers got battered during the recent stock market rout as fears about the future of the eurozone, sovereign-debt concerns in the U.S. and potentially slowing growth in the crucial Chinese market fueled concerns that the strong sales growth seen in recent months could deflate.

Memories of the last market slump in late 2008 and 2009 are still fresh among investors, when credit markets dried up and car sales contracted sharply in many major markets across the globe amid recession. So far, however, the companies are unanimously dismissing fears of another sharp decline in demand as both sales and order intake proved robust.

-By Christoph Rauwald, Dow Jones Newswires; [phone]; [e-mail]"

[jbarker5555] 06/10/2011 17:42

Maybe GKN to takeover EU!!!??? :)

[gumberr] 06/10/2011 16:46

must be takeover news or EU to takeover GKN? MARKETS DRIVING GKN again!!

[ignoble] 06/10/2011 16:36

10.3% on the day ...lovely jubbley ....mind you lloyds bank 8% to the good so one or two have had a very good day

[ignoble] 06/10/2011 16:28

Impressive performance ...