GKN sees lower Q4 growth and currency headwinds

Aerospace and automotive engineer GKN reported higher third quarter profit but forecast lower growth for the rest of the year, particularly in automotive markets, and said the strong pound would hit results, although the group "continues to expect 2014 overall to show another year of progress."

GKN said demand in its main markets had been broadly consistent with its expectations when it unveiled half year results.

The commercial aerospace market was robust and global light vehicle production was up 2%. Agricultural equipment demand fell sharply while military aerospace, construction and industrial markets were broadly flat.

Sales in the three months to 30 September rose 3% to £1.8bn, offset by a £119m or 6% currency hit, while profit rose to £139m from £131m a year ago.

GKN forecast little change in markets for the rest of the year. It expects the automotive market to stay positive with a lower rate of growth in the final quarter.

Aerospace markets were robust whilst farming equipment demand looked set to continue its recent decline.

"As previously stated, the strength of sterling will adversely affect reported results, but the group continues to expect 2014 overall to show another year of progress," it said.

Chief executive Nigel Stein said: " Looking forward to the rest of the year, tougher prior year comparators mean that organic growth is likely to be more modest."