Shares in UK manufacturer GKN ticked up yesterday after the company announced it continued to outperform the market during the start of the year.
The British company, which specialises in the manufacture of components for the aerospace and automotive sectors, received a boost from a growing car market and the strength of sterling.
GKN recorded a four per cent increase in organic sales of its driveline product – a component used in almost half of all cars – to £912m during the first quarter compared with the same period last year. The company also hit expectations for its aerospace division where sales increased by £43m to £589m as increasing commercial orders offset continuing lower demand for military equipment.
However, the company warned the recent announcement by Airbus to scale back on its production of A330 aircraft would be a “headwind” during the second half of the year.
The solid results for automotive and aerospace were undermined by continued weakness in its land systems division which saw sales tumble 14 per cent to £187m on the back of weak agricultural demand.