GKN boosted as luxury car market gets into gear
CAR and plane parts maker GKN said yesterday a strong performance from its cars business was behind a 15 per cent rise in 2011 profit, as sales of luxury cars like Audi and BMW rose and demand in China remained strong.
The company reported pre-tax profits of £417m on revenue 13 per cent higher at £6.11bn.
“Demand for premium autos remains strong and we feel that will be the case in 2012 — China is the biggest driver of that but North America has come back strongly too,” GKN chief executive Nigel Stein said.
“Global car production should rise about five per cent this year and we expect to deliver more growth on the back of that.”
GKN’s auto unit makes products such as driveshafts, chassis, axles and lighter auto components for a number of brands.
Revenue at the automotive business, which makes up almost two-thirds of group sales, rose 10 per cent to £2.68bn in 2011.