GKN Share Discussion Threads

[gumberr] 06/8/2012 15:43

GKN takeover?

[libertine] 04/8/2012 09:44

Questor share tip: GKN opertates in growth markets

GKN posted a solid set of interims. Questor says buy GKN shares.
By Garry White

7:00AM BST 04 Aug 2012

GKN
210.6p
Questor says BUY

First-half numbers from specialist engineer GKN beat market expectations, with pre-tax profits leaping 43pc.


Nigel Stein, chief executive, also gave some upbeat interviews, indicating that, while many of GKN's customers were cautious about the rest of 2012, "no one is pressing alarm buttons" about the wider economy.


This is good news for GKN as many of its products are used in markets with impressive long-term growth, such as the automotive, agricultural and commercial airline industries.


The number of vehicles on the road globally, for example, is expected to rise by 22pc between 2012 and 2017, according to industry body LMC Automotive. Of course, markets in Europe are expected to remain weak, but Asia will be robust. In the six months to June, sales rose 16pc to £3.5bn and pre-tax profits jumped to £289m from £202m.

The dividend interim was raised by 20pc to 2.44p and it will be paid on September 24.

The numbers resulted in one of the most bearish analysts on the shares upgrading his rating to hold.

Last month, GKN made a good purchase – the aero engine division of Volvo.

The business specialises in engine parts for commercial airliners, so is a good fit for GKN's operations, which is focused on structural engineering.

The shares are sitting at about the same level they were following the Volvo deal announcement, after drifting for most of the last month. The results failed to give the shares a lift, but Questor still thinks the shares represent reasonable value, given the prospects for its end markets.

Trading on a current-year earning multiple of 8.5 falling to 7.3 and yielding 3.4pc Questor says buy

[mida5] 02/8/2012 22:14

Are we going to get a bounce in the morning?

[ninja 19] 31/7/2012 16:43

Look at the volume, the spivs stopped any rise. Pathetic open, crazy market

[mj19] 31/7/2012 16:11

how about 211

[gumberr] 31/7/2012 13:39

£2.20 on close my guess!

[libertine] 31/7/2012 10:01

Broker snap: Jefferies remains a buyer of GKN
Tue 31 Jul 2012

GKN - GKN

Latest Prices
Name Price %
GKN 212.00p +0.47%


LONDON (SHARECAST) - Jefferies has maintained its 'buy' rating and 220p target price for engineering giant GKN, saying that the shares could be in for a 'significant' jump.

"We sense that sentiment towards GKN is still being heavily swayed by caution about global light vehicle production, but GKN is likely to be able to generate at worst a robust performance in 2H12 and 2013, in our view," Jefferies said.

"Our simple logic is that if earnings come to be viewed as robust, attention could switch to how earnings might increase against a stable or more positive backdrop. We believe that could lead to significant share price performance."

According to GKN, global light vehicle production rose by 9% in the first half, and expects it to fall slightly relative in the second half.

"We recognise the macroeconomic uncertainty that exists, but believe it reasonable to continue to set forecasts based on a modest decline in vehicle production in 2H12 and 2013," said the broker at Jefferies.

By 09:51, shares were 0.42% higher at 211.88p

[mida5] 31/7/2012 09:59

Will we get to to £2.15 today?

[gumberr] 31/7/2012 08:53

thats more like it!

[ninja 19] 31/7/2012 08:53

they all been waiting

[ninja 19] 31/7/2012 08:48

City spivs, are trying to get our shares. This will rally

[daz] 31/7/2012 08:29

Seems a very mean reaction to good results and the outlook should be good if the acquisition goes to plan.

[gumberr] 31/7/2012 08:19

This will be back up no doubt results dont do the current share price any justice!!!!

[gumberr] 31/7/2012 08:13

usual pattern sell on results! looks that way!

[ninja 19] 31/7/2012 07:58

Bookbroker

Yeah ok, of course they need to say that muppet. Check the figures. Do you know when a company is being conservative, then smash estimates.


Headwinds? We been in this for 2-3 years now

[broadwood] 31/7/2012 07:56

FLASH: GKN operating profits surge

[ninja 19] 31/7/2012 07:48

WE do not see result like this very often


Erarning before tax 43%+ up

EPS up 38% Up

Div up 20%.


They even made £18M in credit for hedging. LOLOL

[ninja 19] 31/7/2012 07:44

Sales Organic Trading margin
(GBPm) sales %
growth
----------------------- -------------- -------- ------------------
2012 2011 % 2012 2011
----------------------- ------ ------ -------- -------- --------
GKN Driveline 1,664 1,333 9 7.3 7.1
----------------------- ------ ------ -------- -------- --------
GKN Powder Metallurgy 465 435 9 10.1 9.0
----------------------- ------ ------ -------- -------- --------
GKN Aerospace 770 723 7 11.2 11.1
----------------------- ------ ------ -------- -------- --------
GKN Land Systems 512 444 6 10.2 8.8
----------------------- ------ ------ -------- -------- --------

Group 3,459 2,988 8 8.5(*() 7.5(*()
----------------------- ------ ------ -------- -------- --------

[broadwood] 31/7/2012 07:16

Increased sales and margin progression - thats what we like to hear.

[bigbigdave] 31/7/2012 07:14

That'll do nicely :o)

[ninja 19] 31/7/2012 07:14

230p+ open today