GKN to pay dividend after profit surge

 
City A.M. Reporter
Airplane parts maker swung to a full-year profit, helped by a strong performance at its automotive unit, and said the outlook was positive with civil aircraft production set to grow in 2011.

GKN, which produces airframes, engine structures and components for plane makers Airbus and Boeing reported a 2010 pre-tax profit of £363m, up from £87m in 2009, on revenues 22 per cent higher at £5.4bn.

"The results reflect the strong recovery in driveline, powder metallurgy and land systems, a good performance in aerospace and the on-going benefits from restructuring," the company said in a statement.

"The aerospace market has remained subdued although civil aerospace is now moving into a strong growth phase with volume increases on existing platforms and new aircraft moving into production."

The company paid a final dividend of 3.5 pence per share, making a total dividend for the year of five pence per share, having not paid a dividend last year.

GKN said it made the decision to pay a dividend in response to the improving trading environment and taking into account future prospects.