Shares in engineering group GKN close down on warning that growth rates are "easing" in its major markets

Francesca Washtell
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GKN's Yeovil factory specialises in manufacturing airframes for the Royal Navy's Wildcat helicopter (Source: Getty)

Shares in engineering group GKN closed 2.9 per cent lower today after the group warned it might have a bumpy road ahead in its major markets.

Sales performed in line with expectations in the nine months to 30 September, rising 21 per cent to £6.9bn, the company said in a trading update.

However, organic growth came in lower at two per cent, with the rest of the hike in turnover driven by acquisitions worth £587m and a beneficial currency translation of £474m.

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Turnover in its aerospace division was in line with expectations, up two per cent on an organic basis to £2.5bn, while automotive sales performed "well", coming in six per cent higher to £3bn.

However, chief executive Nigel Stein warned the group sees growth rates "easing" in its major markets.

Read more: GKN's share price rises after it posts jump in sales

Stein said: "GKN has continued to make progress. Organic growth was two per cent, whilst we also benefitted significantly from the successful acquisition and integration of GKN Aerospace Fokker as well as from favourable currency translation due to the weakness of sterling.

"As expected, our organic profit performance was down primarily due to one-off items, including the costs of the restructuring, which will position us better for the years ahead."

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