GKN plc Results Announcement for the six months ended 30 June 2012
|
|
Management basis |
As reported |
||||
|
|
2012 |
2011 |
Change % |
2012 |
2011 |
Change % |
|
Sales |
3,459 |
2,988 |
+16 |
3,254 |
2,799 |
+16 |
|
Operating profit (*) |
293 |
224 |
+31 |
301 |
210 |
+43 |
|
Profit before tax (*) |
266 |
200 |
+33 |
289 |
202 |
+43 |
|
Earnings per share (*) |
14.4p |
10.9p |
+32 |
14.4p |
10.4p |
+38 |
|
Interim dividend per share |
2.4p |
2.0p |
+20 |
2.4p |
2.0p |
+20 |
Group Highlights
Group results reflect the continued strong organic growth in all four Divisions and the contribution from acquisitions:
- Sales up 16% (£471 million) to £3,459 million, +8% on an organic basis;
Excluding the 2011 effects of the Gallatin incident:
- Management trading (operating) profit up 19% to £293 million;
- Trading margin improved to 8.5%;
- Profit before tax increased 19% to £266 million;
- Earnings per share up 22% to 14.4 pence per share;
- Return on average invested capital reduced to 17.2% (2011: 18.1%), reflecting the 2011 acquisitions.
- Reported profit before tax of £289 million (2011: £202 million).
- Positive free cash flow of £28 million (2011: £25 million).
- Net debt of £590 million (31 December 2011: £538 million).
Since 30 June 2012:
- Announcement of agreement to acquire Volvo Aero, significantly strengthening GKN Aerospace's engine components business.
"GKN has continued to make good progress both in terms of financial performance and implementing our strategy to build a global market-leading business. First half trading has seen sales increases and margin progression for each of our four Divisions and our new acquisitions, Stromag and Getrag Driveline Products, are performing well.
As a result of the strong performance and confidence in the future, the Board has decided to increase the interim dividend by 20% to 2.4 pence per share.
The macroeconomic environment continues to be uncertain, with increasing headwinds in European auto markets. However, with the benefit of a good first half and the Group's broad exposure to global markets, our expectations for 2012 remain unchanged. We expect 2012 to be another good year of progress for GKN and, in addition, we look forward to welcoming our new acquisition, Volvo Aero, into GKN when the transaction completes in the next few months."
