.



A FTSE-100 company with a narrow bid-offer spread. Manufactures and supplies components and vehicle
structures to automotive, aerospace, mining and agricultural industries. Approximately 39,000 people work
in GKN companies and joint ventures in more than 30 countries

GKN corporate website - GKN investors website - Company history


(previous thread title no longer relevant, hence new thread)

"David Frost, BCC director general, told the BBC: "The manufacturing sector is growing very strongly and is a star performer, but the service sector is undoubtedly acting as a drag."

From today's reports on the UK economy. Good news for the likes of GKN and Brammer (BRAM). And Titan (TSW).

Brokers all on side... forward P/E of just 10.7 to this years end results FAR TOO CHEAP.

GKN PLC

FORECASTS 2010 2011
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)
SG Securities
15-02-11 BUY 14.72 5.00 20.53 7.50
Arden Partners
14-02-11 BUY 330.04 15.60 4.50 396.66 18.10 5.50
Evolution Securities Ltd
10-02-11 BUY 336.00 18.30 4.00 416.00 20.70 6.50
The Royal Bank of Scotland NV
25-01-11 BUY 352.40 15.54 4.50 388.00 18.04 6.00
Charles Stanley
18-01-11 HOLD
FinnCap
13-05-10 BUY
Nomura Research Institute [R]
27-07-09 NEUT 105.00 12.00 4.00 192.00 20.70 6.00

2010 2011
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)
Consensus 339.32 16.04 4.50 400.65 19.40 6.41
1 Month Change 6.54 0.54 -0.24 5.59 0.10 -0.30
3 Month Change 18.45 1.37 -0.03 22.22 1.05 -0.77


GROWTH
2009 (A) 2010 (E) 2011 (E)
Norm. EPS 129.05% 121.04% 20.93%
DPS % % 42.26%

INVESTMENT RATIOS
2009 (A) 2010 (E) 2011 (E)

EBITDA 397.00m 576.73m 627.32m
EBIT 193.00m 364.24m 430.60m
Dividend Yield 0.00% 2.17% 3.09%
Dividend Cover x 3.56x 3.03x
PER 28.62x 12.95x 10.70x
PEG 0.22f 0.11f 0.51f
Net Asset Value PS 27.25p 82.47p 96.09p

FLASH: GKN started with buy rating at Investec, target price 243p

Market outlook: HSBC, Pearson, ITV, GKN

http://www.whatinvestment.co.uk/trading/markets/news/1605403/market-outlook-hsbc-pearson-itv-gkn.thtml

Very nice results out this morning.

"..GKN's strong market positions and leading technology and the conclusion of restructuring leave us extremely well positioned for sustainable growth and margin expansion."

Edison BUY note just out.......

Summary.....


Valuation: Well positioned for uplift

The current rating of 10.0x CY11 EPS provides an opportunity to invest in a business that has world-leading market positioning, a strong backlog and supportive industry trends that has suffered recently from concerns regarding material costs that have proven to have, in fact, little impact on forecasts.

GKN note from Edison Investment Research - GKN's prelims showed that the rebound in global automotive demand accele... http://ow.ly/1bzS01

Evolution Securities said the firm was well-placed to double its earnings per share in 2011, possibly through acquisitions, after producing a very solid set of numbers.

The market outlook remains positive and we expect further positive momentum, added Investec analyst Andrew Gollan.

Rumours of t/o approach from chinese manufacturer. Hence lift in sp today.

GKN to sell Wheels arm

Ben Harrington, 21:52, Tuesday 8 November 2011

Engineering (Milan: ENG.MI - news) company GKN (LSE: GKN.L - news) is preparing to sell its Wheels division for around 130m.

The FTSE 100 company has been talking to advisers about selling the unit which makes wheels for high power tractors, fork lift trucks and wheeled excavators. It recently appointed boutique advisory firm Gleacher Shacklock to work on the deal.

The sale process for GKN Wheels is likely to start in the New Year, said sources.

However, it is not clear why GKN has suddenly decided to offload Wheels, which sits within the company's Land Systems division.

One engineering analyst pointed out that off highway wheels manufacturing is a mature sector that generates low margins and is vulnerable to de-stocking.

"Wheels is a difficult market, so it probably makes sense to get rid of that division during this period of the cycle," said the analyst.

Recently, GKN, which traces its roots back to1759 and the birth of industrial revolution, decided to "restructure" the North American manufacturing base for its Wheels division by bringing production of hubs and spindles under one roof.

At the time, GKN said "many manufacturers of agricultural machinery prefer to purchase hubs, spindles and wheels from the same source".

GKN's Wheels division also has operations in the United Kingdom, China and Italy, according to the company's website.

Shares in GKN have been under pressure in recent weeks amid fears the company will be hit by an economic slowdown, especially in automotive production in Europe (Chicago Options: ^REURUSD - news) .

Last month the company said in a trading update that market conditions were broadly "as expected" at the time of its half year results announcement in August.

It added performance has remained strong through the seasonally weaker third quarter and "order books support further progress in the fourth quarter".

Although GKN is looking at offloading its Wheels unit, it has also been carrying out bolt on acquisitions. In July GKN paid paid 280m to acquire Getrag, a privately-owned German business that supplies all-wheel-drive transmission systems. The deal was aimed at strengthening GKN's presence in the "four by four" vehicle market.

GKN, whose shares rose 3.7 to 190.1p, declined to comment.

One of Britain's oldest and best-known engineering giants, GKN is once again the target of heightened bid speculation. - thisismoney.co.uk
The auto parts and aerospace engineer saw its shares rise almost 5 per cent yesterday as sources said Warburg Pincus-backed Quest Global Engineering was a leading contender for a bid.

The Singapore-based group has been on the acquisition trail funded by its private equity backer and wealthy Indian founder Ajit Prabhu.
About 60 per cent of GKN�s business comes from car parts and the firm (up 7.5p to 177.1p) had already been tipped as a bid target for MG owner Shanghai Automotive Industry Corporation.

Quest already has an aviation division but is not currently in the automotive business.
The engineering industry has seen a raft of consolidation in recent months, with American valve-maker Colfax buying Charter for �1.5billion, Finland�s Wartsila paying �383million for Hamworthy, and America�s Cooper Industries buying Laird for �493million.

One analyst said GKN is a logical target for a predator because �you could strip out the value� and it would benefit from �a lot of self-help�. A major barrier is its �500million pension liability which may have grown to �700million in recent months.

GKN (183p)

GKN, the FTSE 100 global components maker, has its fingers in many pies – automotive, aerospace, hybrid technology, developed markets, and China. Its customers include the world's biggest car makers but also Boeing and Airbus.

However, its shares declined 20pc in 2011 as the company became caught up in fears about the health of the eurozone and the impact this could have on the world's manufacturing output. Long-standing chief executive Sir Kevin Smith also announced his retirement.

An economic shock in Europe could lead to plant shutdowns similar to 2009, which caused GKN to rush to shareholders for emergency cash. But the company now appears well placed to withstand this if it happens or well placed to grow if it does not.

Despite the uncertainty, 2011 saw record global car sales. 2012 promises further growth into emerging markets for car makers and a recovery in the US, particularly for premium companies such as BMW and Jaguar Land Rover.

GKN could also enjoy the benefits of a forecast growth in civil aircraft production as Boeing and Airbus ramp up projects.

In its last trading update, GKN said automotive sales were up 10pc year-on-year, aerospace 3pc and its next-generation land systems division 23pc.

The company ended the year trading at 7.2 times 2012 earnings and a yield of 4.8pc.

GKN – the type of manufacturing business Britain needs more of – is worth supporting

final results due tuesday 28th february

StockMarketWire.com
GKN has agreed to acquire Volvo Aero - the aero engine division of AB Volvo - for £633m.

Volvo Aero designs, engineers and manufactures components and sub-assemblies for aircraft engine turbines.

It supplies all the major aero engine manufacturers and has positions on most major civil aerospace platforms that are set to increase as aircraft build rates ramp up.

Volvo Aero employs some 3,000 people based in Sweden, Norway and the US.

GKN chief executive Nigel Stein said: "This is a highly attractive acquisition for GKN creating a market leader in aero engine components.

"With excellent technology and strong life-of-programme positions on most civil aero engines, Volvo Aero will significantly enhance GKN Aerospace's engine components business."

The acquisition enterprise value is SKr6.9bn (£633m) comprising SKr5.6bn (£513m) of equity value (consideration) together with an anticipated Volvo Aero pension settlement (£50m) and working capital refinancing (£70m).

The acquisition is expected to complete during the third quarter, subject to regulatory approvals.

It will be funded by new debt and a £140m placing of new ordinary shares, representing approximately 5% of GKN's current market capitalisation.

UBS note:
"GKN believe they can drive 300-400bp of Volvo cost synergies by 2014 compared to our previous 250bp “at-best” assumption. This would mean that a) the deal is 3% earnings accretive in 2013 b) it covers pre-tax WACC in year one and c) with Volvo moving into the 11-13% Aerospace margin target range it will be accretive to group margins too. We see other benefits from this acquisition as high quality Aerospace profits become 40% of group and GKN’s technology content increases. GKN’s trading update shows growth strong across the board. Driveline margins appear weaker than expected in Q2 though but profits are helped by robust performances elsewhere. 2012 earnings are hit by deal costs though while our underlying earnings in 2013 fall 3%, split equally between updated currency & Driveline assumptions, but this is offset by 3% Volvo deal accretion.
250p price target maintained based on SOTP. Reiterate Buy".

Half Yearly Report

Group Highlights(1)


· Group results reflect the continued strong organic growth in all four Divisions and the contribution from acquisitions:

o Sales up 16% (£471 million) to £3,459 million, +8% on an organic basis;

· Excluding the 2011 effects of the Gallatin incident:

o Management trading (operating) profit up 19% to £293 million;

o Trading margin improved to 8.5%;

o Profit before tax increased 19% to £266 million;

o Earnings per share up 22% to 14.4 pence per share;

o 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:
o Announcement of agreement to acquire Volvo Aero, significantly strengthening GKN Aerospace's engine components business.

Engineer GKN gained 16.5% over the month to end on 210.4p.

On 31 July, the firm announced interim sales up 16% to £3.46bn and pre-tax profits up 43% to £289m, driven largely by its auto divisions. That allowed the firm to lift its half-time dividend by 20% to 2.4p per share, and if that continues at the full-year stage, we should expect a yield of around 3.4%.

Earlier we heard of GKN's acquisition of AB Volvo's aero engine division for £633m, which was widely considered a nice price. The deal will mean that GKN makes parts for all of the world's major aero engine manufacturers, and with increases in both air passenger and freight air traffic forecasts, and demand growing for a new generation of energy-efficient power plants, this is good long-term news for GKN.

Sun 05 Aug 2012
First-half numbers from specialist engineer GKN beat market expectations, with pre-tax profits leaping 43 per cent. Nigel Stein, chief executive, also gave some upbeat interviews, indicating that, while many of GKN’s customers were cautious about the rest of 2012, “no one is pressing alarm buttons” about the wider economy. This is good news for GKN as many of its products are used in markets with impressive long-term growth, such as the automotive, agricultural and commercial airline industries. The numbers resulted in one of the most bearish analysts on the shares upgrading his rating to hold. Last month, GKN made a good purchase – the aero engine division of Volvo. The business specialises in engine parts for commercial airliners, so is a good fit for GKN’s operations, which is focused on structural engineering. The shares are sitting at about the same level they were following the Volvo deal announcement, after drifting for most of the last month. The results failed to give the shares a lift, but Questor still thinks the shares represent reasonable value, given the prospects for its end markets. Trading on a current-year earnings multiple of 8.5 falling to 7.3 and yielding 3.4 per cent Questor says buy.
Friday tips round-up: RSA, Robert Walters

Previously flagged this one up.

Just gone long. Got some momentum behind it.

GKN


Brokers well onside............

GKN Broker Views

Date Broker Recommendation Price Old target price New target price Notes

17 Jan Credit Suisse Outperform 244.25 255.00 255.00 Reiterates
17 Jan Oriel Securities Buy 244.25 300.00 300.00 Reiterates
15 Jan Bank of America Merrill Lynch Buy 244.25 280.00 280.00 Reiterates
11 Jan Investec Buy 244.25 224.00 275.00 Upgrades

N@P Building society.

UBS has reiterated its 'buy' rating for engineering giant GKN and raised its target price for the stock from 230p to 270p, saying that "life should get better" after a difficult fourth quarter.

29 Jan GKN PLC GKN Citigroup Buy 224.45 241.50 290.00 290.00 Reiterates

SP Target 290p.

01 Feb GKN PLC GKN Oriel Securities Buy 245.65 240.80 300.00 - Reiterates

SP TARGET 300p.

05 Feb GKN PLC GKN Investec Buy 247.05 247.30 275.00 275.00 Reiterates

SP Target 275p

Brokers like GKN.......

GKN Broker Views

Date Broker Recommendation Price Old target price New target price Notes

05 Feb Investec Buy 248.75 275.00 275.00 Reiterates
01 Feb Oriel Securities Buy 248.75 300.00 - Reiterates
29 Jan Citigroup Buy 248.75 290.00 290.00 Reiterates
17 Jan Credit Suisse Outperform 248.75 255.00 255.00 Reiterates
17 Jan Oriel Securities Buy 248.75 300.00 300.00 Reiterates

N@P Building Society.

12 Feb GKN PLC GKN Investec Buy 252.95 257.90 275.00 275.00 Reiterates

SP Target 275p.

Annual results

Group Highlights(1)


· Group results reflect the continued strong organic growth and the contribution from acquisitions

· Record profits achieved in all four divisions

· Sales increased 13%, up 6% on an organic basis

· Management trading (operating) profit up 19%

· Trading margin improved to 8.1%

· Profit before tax up 19%

· Return on average invested capital of 18.1% (excluding Volvo Aero)

· Earnings per share up 17%
· Final dividend of 4.8 pence per share, giving a total for 2012 of 7.2 pence per share, a 20% increase

· Reported profit before tax of £588 million (2011: £351 million)

· Positive free cash flow of £213 million (2011: £147 million), excluding Volvo Aero

· Net debt of £871 million (2011: £538 million), reflecting the acquisition of Volvo Aero.

Ex-divi tomorrow (10th Apr) 4.8p

Broker Update

2013 GKN PLC GKN Cantor Fitzgerald Buy 370.70 370.70 - 420.00 Retains

SP Target 420p.

GKN solid update this morning. Organic growth 6% ahead.

Expect broker upgrades on that.

Jefferies has kept its 'buy' rating for engineering giant GKN after the company's well-received quarterly results on Tuesday.

The broker said that in a seasonally weak third quarter, results have come in ahead of its expectations: "Apart from Land Systems, where there was an 8% organic decline in sales (1H13, -8%), everything else did pretty much what one might reasonably have expected against a trading backdrop somewhat stronger than that in 1H13, in our view."

Third-quarter sales rose to £1,865m to £1,608m the year before, ahead of Jefferies' forecast for £1,825m. Meanwhile, trading profits rose from £114m to £152m, compared with the £145m estimate.

The broker said: "We have dithered about revising our price target for GKN. Setting a price target appears to require us to formulate stances on both the micro and the macro backdrops. For now, all we would venture is that GKN's 3Q13 performance appears to be a step forward on the micro-front."

The stock was 2.21% higher at 370.5p by mid-morning on Tuesday.

Broker Updates on GKN

25 Oct 2013 GKN PLC GKN Cantor Fitzgerald Buy 373.30 376.20 420.00 430.00 Retains

25 Oct 2013 GKN PLC GKN Credit Suisse Outperform 373.30 376.20 395.00 395.00 Reiterates

StockMarketWire.com
Barclays Capital has upgraded its recommendation on global engineering group GKN (LON:GKN) to 'overweight' from 'equal weight', stating that the "stars appear to aligning" but admitted that the diversified nature of its operations make it difficult to pinpoint what is driving earnings.

The broker said: "Valuing the business is tricky, it's not quite an auto stock (although it sits in the SXAP) nor is it an A&D stock and increasingly it seems the right peers are other UK industrials. "On that basis it looks inexpensive."
Analysts have set a price target of 440 pence a share.

Separately, Liberum Capital initiated coverage of GKN with a 'buy' rating and 440 pence target in a note to investors, on Wednesday.

"GKN is cheap, has a strong balance sheet and can surprise on growth for two reasons; Driveline momentum, particularly in China, and acquisitions, which could be 11% accretive," the broker said.
"Investment in new technologies may be the icing."

"stars appear to aligning" - a well known investment ideology!?

In today at 332 ..

Out on Friday 334 . £9 profit . Wish all my trades were this good !!

StockMarketWire.com
RBC Capital Markets has downgraded its recommendation on multinational automotive and aerospace components group GKN (LON:GKN) to 'underperform' from 'sector perform' in its Pan European Industrial Goods note, today.

The broker highlighted that the shares have re-rated since October and that it sees few signs of earnings momentum improving.

"We believe that the recent re-rating reflects higher valuation multiples elsewhere (automotive peers) more than belief that margins can increase to closer to peers and/or that GKN is morphing into an aerospace company," analysts added.

Target price was cut to 340 pence a share from 390 pence.

Citigroup reiterates buy on GKN, target raised from 390p to 420p.

This could be a buy for me at some point if it drops somewhere near last years low .

Results interim 28/7/15

StockMarketWire.com
GKN reports a solid performance for six months to the end of June and announced it has agreed to acquire Fokker Technologies Group for €706m.

GKN also plans a non pre-emptive cash placing of new ordinary shares to raise approximately £200m, gross.

The group said GKN Driveline delivered 4% organic sales growth and an 8.3% trading margin while GKN Powder Metallurgy achieved an 11.8% margin.

GKN Aerospace delivered in line with expectations and won some important new contracts for the future.

Chief executive Nigel Stein said: "We have continued to perform well against our key markets and report good results in spite of some end market weakness, particularly in GKN Land Systems. We expect these trends to continue in the second half and for 2015 to be another year of growth.

"The acquisition of Fokker Technologies, also announced today, supports our strategy, brings excellent technology, an expanded geographic footprint and additional content on high growth aerospace programmes."

Highlights:
· Sales increased 1% organically

· Trading margin improved to 9.0%

· Profit before tax (management basis) up 4% at £346m

· Reported profit before tax was £212 million (2014: £224 million)

· Earnings per share up 1%, impacted by an increased tax rate of 24% (2014: 22%)

· Interim dividend increased 4% to 2.9 pence per share

· Free cash flow of £21 million (2014: £19 million)

· Net debt of £708 million (31 December 2014: £624 million), reflecting normal seasonality

Jeffries note: BUY TP 415p
"Excluding provision releases in Aerospace and a pension service credit in Corporate, we estimate Group EBIT would have been around 4% below company-sourced consensus. The ability of sentiment to drive GKN’s valuation has recently been manifest. Today’s acquisition of Fokker Technologies for £499m and share placing of £200m may test the mood. We thought GKN might be battening down the hatches, but we have significant expansion.
1H15 results in brief. Group management sales rose from £3,828m to £3,853m (company-sourced consensus £3,860m; JEFe £3,877m) and Group management EBIT rose from £340m to £346m (consensus £337m; JEFe £345m). There were, however, £15m of provision releases in Aerospace. Group EPS rose slightly from 14.4p to 14.5p (JEFe 13.8p), despite the book tax rate rising from 20% to 24%. The interim dividend was increased from 2.8p to 2.9P (JEFe 2.9p). 1H15 free cash was £21m compared to £19m in 1H14, although the latter included a £54m repayment of a UK Government refundable advance. Net debt at end 1H15 was £708m versus £813m at end 1H14 and £624m at end FY14. The total deficit on Group post-employment obligation at end 1H15 was £1,533m versus £1,711m at end FY14 and £1,363m at end 1H14.
Good organic growth. 1H15 Group management sales rose by 1%, the performance across each division being: Aerospace 2% (1H14 and FY14 = 3%), Driveline 4% (1H14 = 11%; FY14 = 8%), Powder Metallurgy 1% (1H14 = 6%; FY14 = 5%) and Land Systems -8% (1H14 = -9%; FY14 = -10%). GKN states that 1H15 global light vehicle production rose by 0.9% meaning that Driveline continued to usefully outperform its end market. In Driveline, good organic growth was achieved in Europe, but North American sales were in-line with the market due to the weighting of US new car registrations towards the pick-up truck segment where GKN’s content is lower than on cars and SUVs (this was also the case in the May trading update). Driveline’s 1H15 operating margin of 8.3% showed a useful improvement over 8% in 1H14 and 8.1% for FY14. GKN notes that its 2H15 growth in China is expected to be above the market due to the strong order book and new programme launches. No mention is made of pricing pressure. In Powder Metallurgy, reported organic sales growth of 1% was reduced by around 1% by the negative of a direct pass through of lower raw material prices, but that might also have helped the operating margin rise to 11.8% from 11.3% in 1H14 and 11% for FY14. Nonetheless, Powder Metallurgy looks a little dull, in our view.
Fokker Technologies. Today’s acquisition has an EV of €706m (£499m). GKN states the acquisition will be earnings accretive in its first full year and that ROIC should exceed GKN’s cost of capital in 2017. In 2014, Fokker had sales of €758m, EBITDA of €76m and EBIT of €53. GKN has identified potential synergies of around €23m. GKN also notes that Fokker has historical tax losses that GKN expects to utilise. In 2014, around 20% of Fokker’s sales from business jets, a market that has recently generated some cautious commentary at several of GKN’s peers. In many respects, however, Fokker appears to be a good fit in terms of the major programmes it supplies. On the Airbus A350 family, for example, Fokker supplies the outboard wing flap. It also supplies Flaperons for the F-35 JSF. Fokker’s GLARE fuselage panel for the A380 is also an interesting technology that may have future applications, in our view.
Great circles. Today, GKN looks to have continued following the shortest path from A to B; growing away from its legacy liabilities and moving Aerospace further towards a world-leading position. Our snap reaction is that Fokker is a complementary business being acquired at a reasonable price. The snag is that sometimes one must revise one’s course to reflect the prevailing winds. Those winds are currently such that GKN may test the market’s mettle today."

Bought in last week see if we can get the same sort of bounce as last year .

Still looking grim Jimmy......support at.........hmmmmmmm.....240p?

StockMarketWire.com
Investec has downgraded its recommendation on global engineering group GKN (LON:GKN) to hold from buy, stating that is adopting a more cautious view on the outlook for Driveline and Powder Met to reflect a potential slowdown in auto production in China and other emerging markets.

Analysts also reduced their target to 300 pence a share (from 370 pence), implying a forecast total return of 9.7 per cent.

The broker added: "Weak earnings momentum has shaken confidence and investors may require consensus forecasts to stabilise before buying into GKN's longer term potential to drive a re-rating."

I'm happy to hold for the moment HARRY ,doesn't seem as much of a gamble as some stocks out there .

One of the many suppliers to the auto industry hit by the VW news. Seems a bit unreasonable as GKN have nothing to do with the software side as far as I know, but may be an opportunity to buy into GKN when the dust as settled?

6 Oct Canaccord... 445.00 Buy
6 Oct Canaccord... N/A Buy
2 Oct Panmure Gordon 375.00 Buy
30 Sep JP Morgan... 380.00 Overweight

Sector note from Liberum today:
"We further downgrade estimates for our engineering coverage to reflect lower growth signalled by our early cycle indicator. Margin resilience will now be the focus during the looming 3Q 15 reporting season. The sector has recently sold off but it is too soon to turn more positive. Pockets of value exist but short term risk/reward remains to the downside.

· 73% of our recs are Hold or Sell

· Proprietary UK ECI signals 1% growth

· FY16 growth and margin estimates cut accordingly

· Sell ROR, WEIR and increase caution on TTG, IMI, GKN

· Pockets of value include SXS, BOY, MRO and MGAM (all BUYs)

· …but 3Q 15 will be bearish."

HARRY they need to make their mind up !

16 Oct Liberum Capital 300.00 Hold
16 Oct Berenberg 370.00 Buy
15 Oct Panmure Gordon 375.00 Buy

You could interpret 'increased caution' as being a HOLD.
To be honest, I just add broker comments into the mix for a balanced view. You and I get it right as much as they do, imo.

StockMarketWire.com
GKN, the global engineering business that serves the aerospace, automotive and land systems markets, says management sales for the nine months ended 30 September rose to £5,683 million - up from £5,617 million last time.

GKN says this represented a 2% organic increase, with beneficial currency translation of £29 million being more than offset by the net negative impact of disposals/acquisitions of £54 million.

Group trading margin was slightly below last year principally due to GKN Land Systems including the previously announced restructuring costs.

Looking ahead, the group says that in line with the global economic outlook, it sees a slight softening to the rate of growth in its major markets in the fourth quarter. The automotive market is forecast to see a 1% decline in the final quarter.

Military aerospace and agricultural equipment markets look set to continue their declines whereas commercial aerospace markets remain robust.

Notwithstanding the backdrop of the tougher economic environment, before any impact from the Fokker acquisition, the group continues to expect 2015 overall to be a year of further growth.

Chief executive Nigel Stein said: "We have maintained our progress reporting 2% organic growth, in spite of the tougher economic environment. We continue to expect 2015 to be a year of further growth."

22 Oct Canaccord... 445.00 Buy
19 Oct Barclays... 450.00 Overweight

StockMarketWire.com
GKN, the global engineering group, has confirmed that the acquisition of Fokker Technologies Group, announced in July, has been completed.

Fokker is a specialist tier one aerospace supplier in aerostructures, electrical wiring systems, landing gear and associated services, across commercial, military and business jet end markets.

It will reinforce GKN Aerospaces global leadership positions, increase shipset value on key growth programmes and further extend its global footprint with a presence in China, Turkey, India and Mexico.

JP Morgan Cazenove today reaffirms its overweight investment rating on GKN PLC (LON:GKN) and cut its price target to 370p (from 380p).

StockMarketWire.com
GKN reports continued progress in 2015 and delivered on its expectations.

Sales for the year ended 31 December increased 2% organically with good growth in Automotive; GKN Aerospace up; GKN Land Systems down in tough markets.

Trading margin were unchanged at 9.2%, excluding Fokker Technologies.

Profit before tax (management basis) rose to £603 million (2014: £601 million) and reported profit before tax increased to £45 million (2014: £221 million), (higher primarily due to the movement on the mark to market valuation of forward foreign exchange contracts).

Management earnings per share slightly lower, as a result of the costs of the Fokker acquisition and an increased tax rate to 24% (2014: 22%).

Total dividend increased 4% to 8.7 pence per share.

Chief executive Nigel Stein said: "GKN continued to make progress in 2015 and delivered on our expectations. We performed well against our key markets, overcoming some demand weakness and demonstrating once again the strength of our businesses, strong market positions and leading technology. Highlights of the year were GKN Aerospace's acquisition of Fokker Technologies, strong market-beating growth by GKN Driveline and good margin advances by GKN Powder Metallurgy. Looking forward, we expect 2016 to be a year of good growth, helped by the contribution from Fokker."

Berenberg today reaffirms its buy investment rating on GKN PLC (LON:GKN) and cut its price target to 332p (from 370p).

StockMarketWire.com
GKN, the global engineering business that serves the aerospace, automotive and land systems markets, says its principal markets have performed in line with its expectations.

Management sales for the three months ended 31 March were GBP2,179 million (2015: GBP1,943 million). This 12% increase comprised 1% organic growth, 8% acquisition growth and 3% beneficial currency translation.

The group says its automotive businesses continue to outperform the market and its aerospace business has traded in line with its expectations, against a strong comparative period. Land Systems markets remain tough.

Group trading margin is lower than last year primarily due to a reduction in GKN Aerospace as a result of lower military sales, the mix of new and mature programmes and the absence of last years one-off benefits. The inclusion of Fokker Technologies increased profit but reduced trading margin.

StockMarketWire.com
GKN experienced another period of growth in line with expectations.

HIGHLIGHTS
- Sales up 17% and management eps increased 7%

- Continued market outperformance with organic sales up 2%

- Fokker integration on track and performing well

- Reducing fixed costs; annualised savings of £30 million from 2017 through a GKN wide fixed cost optimisation programme; charge of £35 million in the second half of 2016

- Capital allocation to be progressively directed towards productivity improvement in core aerospace and automotive divisions

- Continued investment in technology

- strong technology pipeline; innovation recognised by customer and industry awards

- Momentum of new business wins continues to support growth ahead of markets

StockMarketWire.com
GKN says trading in the nine months to the end of September was in line with forecasts with management sales up 21%, including organic sales growth of 2%.

GKN, the global engineering business that serves the aerospace and automotive markets, says its principal markets performed in line with the expectations set out in its July results announcement.

Management sales for the nine months ended 30 September 2016 were £6,895 million (2015: £5,683 million). This 21% increase comprised £151 million (2%) organic growth, acquisitions of £587 million and beneficial currency translation of £474 million.

Sales in the Automotive businesses continue to perform well against the market and the Aerospace division grew in line with expectations. Land Systems' markets remain tough.

As expected, the Group trading margin was lower than the equivalent period last year. This was due to the commencement of the Group-wide £35 million restructuring programme, launch related costs in GKN Driveline, the absence of last years one-off benefits in GKN Aerospace and the inclusion of Fokker Technologies.

Operating cash flow was similar to the equivalent period last year. Chief executive Nigel Stein said: "GKN has continued to make progress. Organic growth was 2%, whilst we also benefited 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.

"In line with the global economic outlook, we see growth rates easing in our major markets. The automotive market is now forecast to see a 1% increase in light vehicle production in the final quarter. New commercial aerospace programmes continue to ramp-up, although at a slower rate than expected. Our military aerospace programmes and agricultural equipment markets look set to continue their decline. Despite the slightly tougher macro-economic environment, the Group continues to expect 2016 to be another year of growth."

-==-====




GKN sales and profits rise

StockMarketWire.com

GKN's sales and profits rose in the year to the end of December.

On a management basis sales rose by 22% to £9,414m and operating profits were up 14% at £773m.

Pre-tax profits were up 12% at £678m and earnings per share rose by 12% to 31.0p.

On a reported basis, sales were up 22% at £8,822m, operating profits were up 4% at £335m and pre-tax profits rose by 19% to £292m.

The dividend of 8.85p per share is up 2%.

Chief executive Nigel Stein said: "This is a good set of results with GKN continuing to make underlying progress in line with our expectations.

"We performed well against our key markets, overcoming some demand weakness and demonstrating once again the strength of our businesses, strong market positions and leading technology.

"Strategically we made good progress, including smoothly integrating Fokker and completing the disposal of Stromag - evidence of our sharper focus on capital allocation towards Aerospace and Automotive markets.

"We expect 2017 to be another year of further growth, helped by the benefits of the actions taken in 2016 and GKN's constant focus on continuous improvement."





Story provided by StockMarketWire.com

StockMarketWire.com
GKN's reported pre-tax profits rose to £559m in the six months to the end of June - 207% up on a year ago.

The group said it was another period of growth delivering earnings momentum with sales up 15% (organic sales up 5%).

Other highlights:
- Profit before tax (management basis) up 14% to £393 million (2016: £344 million), helped by currency

- Free cash flow of £116 million (2016: £40 million)

- Interim dividend increased 5% to 3.1 pence per share

- UK defined benefit pension closed to future accrual, £250 million lump sum payment planned to address the deficit and reduce future deficit recovery payments

Chief executive Nigel Stein said: "We made progress in the first half and are on track for the full year.

"We are performing well against our key markets, demonstrating once again the strength of our businesses, strong market positions and leading technology.

"We continue to invest for growth and have made significant progress to address our UK pension deficit.

"Our focus on innovation in key areas such as electrified drivetrains, additive manufacturing and Industry 4.0 is paying dividends and underpins our confidence in the longer term.

"2017 is expected to be another year of growth. Our reputation for technological leadership in our key markets, our focus on driving flexibility and productivity through our manufacturing plants and our market leading position in all three divisions mean we are well placed for the future."

HSBC today downgrades its investment rating on GKN PLC (LON:GKN) to reduce (from hold) and cut its price target to 595p (from 680p).

With the sp currently 322p and the tp at 595p, ie 84% upside it's got to be a resounding REDUCE---------the mind boggles

Profit Warning. With record car sales this year. Order book must not be as healthy going forward I would think.

Must be the weather!!!!

It has had two claims made against it , some £40 million is charged against it . Thought it would drop a lot lower .

Unsolicited bid for GKN from Melrose.

StockMarketWire.com
GKN has rejected a preliminary and unsolicited proposal from Melrose Industries and described it as 'entirely opportunistic'

The 405p per share proposal - which was received on 8 Jan - comprised 80% in new Melrose shares and 20% in cash.

GKN said the board considered the proposal together with its financial advisers, Gleacher Shacklock, J.P. Morgan Cazenove and UBS, and had unanimously rejected it, having concluded that it was entirely opportunistic and fundamentally undervalued the company and its prospects.

GKN said that in addition, the proposal would materially dilute the exposure of shareholders to the meaningful upside opportunities that the board believed were present within the company.

GKN also announced that interim chief executive Anne Stevens had agreed to become the group's new CEO with immediate effect.

Chairman, Mike Turner said: 'The Board believes that Anne Stevens has the track record to transform GKN.

'After a successful turnaround of The Ford Motor Company's businesses in Mexico, Canada and South America, she was appointed as chief operating officer for the Americas where she developed the transformation plan for Ford's US business.

'Subsequently, Anne became chairman, CEO and president of Carpenter Technology.

'She was a non-executive director of Lockheed Martin from 2002 until she stepped down at the end of 2017 to take up her executive role at GKN.

'Her operational and strategic skills are ideally suited to GKN and the Board is very impressed with the contribution she has made so far in setting out plans for a significant improvement in the group's performance.'

GKN said Q4 trading was in line with forecasts and the group continues to expect 2017 management profit before tax to be slightly ahead of 2016 (which was £678 million) before the additional working capital write-off in North American Aerospace announced on 16 November 2017.

FIRM OFFER BY MELROSE INDUSTRIES PLC FOR GKN PLC

· Having commenced its meetings with GKN shareholders this week, Melrose Industries PLC ("Melrose") announces the terms of its firm offer to acquire the entire issued and to be issued share capital of GKN plc ("GKN") (the "Acquisition").

· Under the terms of the Acquisition, which will be subject to the Conditions and further terms to be set out in the Offer Document, GKN Shareholders will be entitled to receive:

1.49 New Melrose Shares and 81 pence in cash for each GKN Share

· Based on Melrose's Closing Price of 234.3 pence per Melrose Share on 16 January 2018 (being the last Business Day before the date of this Announcement), the Acquisition:

‒ values each GKN Share at 430.1 pence;

‒ values the entire issued and to be issued ordinary share capital of GKN at approximately £7.4 billion; and

‒ represents an attractive immediate premium of:

* approximately 29 per cent. to the Closing Price of 332.70 pence per GKN Share on 11 January 2018 (being the last Business Day before commencement of the Offer Period); and

* approximately 32 per cent. to the Closing Price of 326.30 pence per GKN Share on 5 January 2018 (being the last Business Day prior to the approach made by Melrose to the GKN Board in connection with the Acquisition).

· GKN Shareholders would own approximately 57 per cent. of the Enlarged Group, and would become major participants in the potential future value creation in both the GKN and Melrose businesses.

StockMarketWire.com
Melrose Industries went hostile in its £7.4bn takeover offer for engineering group GKN after meeting with the target's shareholders.

GKN shareholders would be offered 1.49 new Melrose Shares and 81p in cash for each GKN share.

The offer now valued the shares at 430.1p, up from a previous value of 405p, Melrose said

"Since our approach was announced, the Melrose share price has risen as the market digests the attractive opportunity our proposal represents," Melrose chief executive Simon Peckham said.

"As a result the implied premium has grown from approximately 24% to approximately 32% since our approach."

GKN said the terms of the offer were effectively unchanged from Melroses original approach.

"We believe GKNs current owners should retain all the benefits of the clear upside potential in GKN, rather than handing almost half of this upside to Melrose and its shareholders," GKN chief executive Anne Stevens said.

"We have already stated that the terms of Melroses offer fundamentally undervalue the company and we are actively engaging with shareholders to explain how our transformation plan will provide value.

Statement regarding offer
GKN notes the publication today of a letter from the Chairman of Melrose Industries PLC (Melrose) to GKNs shareholders announcing the posting of an offer document containing the full terms and conditions of its unsolicited offer to acquire the entire issued and to be issued share capital of GKN for 1.49 new Melrose shares and 81 pence in cash per share (the Offer), which follows Melroses announcement on 17 January 2018 pursuant to Rule 2.7 of the City Code on Takeovers and Mergers (the Code).

The terms of the Offer are unchanged from those contained in Melroses announcement of 17 January 2018. The Board of GKN (the Board) continues to view the Offer as entirely opportunistic and believes that its terms fundamentally undervalue GKN and its prospects.

I reckon 475p with a bit of luck (and an additional bidder).

Strategy and transformation plan

Key points
· GKN already has world class businesses and technology and now intends to move towards world class financial performance

· GKN has a new strategy, new leadership team and new execution engine

· There are three components in the new strategy:

o Deliver distinct strategies for different product segments with rigorous capital allocation and focused performance targets

o Establish a delivery culture based on greater accountability, capability and pace, supported by aligned incentives

o Separate operationally now and formally when it maximises shareholder value - operational separation of the Aerospace and Driveline divisions has already begun

· The Board expects Project Boost to deliver a recurring annual cash benefit of £340m from the end of 2020

· The Board is targeting up to £2.5bn cash return to shareholders over the next three years, with a significant part expected to come from divestments executed within the first 12 - 18 months, including the sale of Powder Metallurgy

· GKN's progressive dividend policy will be to target an average payout of 50% of free cash flow over the period of 2018-2020

· GKN expects to distribute surplus cash to shareholders, subject to maintaining an investment grade credit rating

http://www.moneyam.com/action/news/showArticle?id=5855171

StockMarketWire.com
GKN advised shareholders not to accept Melrose's hostile takeover offer as it was 'not a good deal' and represents 'low price and high risk.'

'The Board unanimously recommends that you should take no action in relation to the offer and that you should not sign any document which Melrose or its advisers send to you,' GKN said in a letter to shareholders.

GKN said that the premium Melrose is offering is 'very low,' and added that Melrose's stated premium of 22% is 'misleading' as its market capitalisation is significantly smaller than GKN's, the offer is 80% in shares, representing an actual premium of 10%.

GKN also highlighted Melrose's lack of relevant experience and said its short term business model is 'inappropriate' as the latter's three-to-five-year exit strategy is not compatible with the long-term investment and technology horizons that are essential in GKN's markets.

GNK called on shareholders to trust in the company's new strategy which aims to deliver returns to shareholders of up to £2.5bn over the next three years.

'Your Board strongly believes that GKN's new leadership team and strategy can maximise shareholder value and that, as a GKN shareholder, you should receive 100% of the benefit of this strategy.

this isn't a stock i have ever followed, but certainly the 5-year chart shows a pretty pathetic sp performance

it certainly concerns me that melrose apparently talk of a 3/5 year exit plan ..... does that smell a bit like good old-fashioned asset-stripping?

motly fool leave alone BB

StockMarketWire.com
GKN reported underlying profits before tax of £572m down 16% from a year ago while organic sales grew 6% to £10.4bn.

Profits were reduced by £145m, primarily due to the £112m balance sheet review charge and associated costs in North American Aerospace and claims of £38m. The group has announced a full year dividend of 9.3p per share, up 5% on a year previously.

The company said it expects the separation of its aerospace and driveline businesses to be completed in the middle of 2019.

"A demerger represents GKN's base case separation structure for a number of reasons, including that the timetable is within GKN's control, it allows GKN to allocate liabilities appropriately and it is tax efficient," GKN said in a statement.

GKN's aerospace division reported 2% organic sales growth but trading margin fell to 7.8% in 2017 from 9.9% the previous year. Underlying trading margin is expected to show a slight improvement in 2018, despite some further contractual price downs and increased investment in new engine programmes.

GKN's driveline division saw organic sales growth rise 9% in 2017 as its eDrive order book extended to over £2bn. The division reported a trading margin of 7.1% versus 7.2% the prior year. GKN said it expects trading margin improvements in both 2018 and 2019 as the division works toward achieving its core segment trading margin target of at least 9.5% in 2020.

Powder Metallurgy's organic sales growth was 5% for the year while trading margin fell 10.6%, reflecting higher raw material surcharge and investment in high-end powder capability in China. The division is expected to show steady progression in 2018 and 2019 as it works towards achieving its 2020 target of at least 11%.

The group said revenue expectations in the short term are unchanged.

Commenting on the results, Anne Stevens, Chief Executive of GKN said: 'GKN has fantastic businesses which have grown organically above our key markets, demonstrating once again our strong positions and leading technology.'

'However as I set out two weeks ago, we now need to change our emphasis and ensure that those orders deliver world class financial performance with a renewed focus on strong margins and cash generation.'

'With Project Boost, I have laid out how we plan to achieve this, through detailed product segment strategies and an emphasis on manufacturing and functional excellence. We are excited about delivering these plans.'

StockMarketWire.com
GKN confirmed that it has been in talks about a potential combination of its automotive business with Dana that would be 'effected mainly in equity.'

GKN said a possible combination of its automotive Driveline business with Dana could provide greater value to shareholders and should therefore be explored alongside the demerger.

StockMarketWire.com
Takeover target GKN said it had agreed to merge its Driveline automotive business with Dana Incorporated in a deal that would give the combined business an enterprise value of $6.1bn (£4.4bn).

GKN said the transaction, together with the prospects of its aerospace business, provided 'significantly greater value' for its shareholders than Melrose Industry's £7bn hostile takeover bid for GKN.

Under the terms of the deal, GKN shareholders would receive 47.25% of the fully-diluted share capital of Dana, equivalent to $3.5bn (£2.5bn), based on Dana's closing share price on 8 March.

GKN would also receive $1.6bn (£1.2bn) in cash after deducting for the transfer of $1.0bn (£0.7bn) of GKN's pension deficit to the combined group.

'This combination of GKN Driveline and Dana will create a US and UK led global market leader in vehicle drive systems,' GKN chairman Mike Turner said.

'The synergies between these two businesses and our complementary product portfolios make this a great deal for GKN shareholders.'

StockMarketWire.com
Melrose Industries sweetened its takeover bid for GKN to £8.1bn and said it would not increase its offer again 'under any circumstances'.

Melrose raised its offer to 81p in cash and 1.69 new Melrose shares for every GKN share, which it said equated to 467p per GKN share, up from a previous bid of 416p.

The new bid would also increase the proportion of ownership that GKN's shareholders would hold in Melrose from 57% to 60%, Melrose said.

GKN on Monday reiterated that Melrose's original bid 'fundamentally undervalues' the UK engineering firm.

On Friday, GKN announced that it was merging its Driveline automotive business with US-bawed Dana to form a company with an enterprise value of $6.1bn.

'The combination of GKN Driveline with Dana will result in GKN shareholders owning 47.25% of the enlarged Dana and GKN receiving net cash proceeds of £1.2bn,' GKN said.

Melrose, however, said its sweetened offer was more attractive.
'The potential transaction with Dana, if it is allowed to go ahead in the last quarter of this year, would leave you with a minority stake in a foreign listed group run by a Dana management team based in Ohio,' Melrose said.

StockMarketWire.com
GKN said Tuesday that it has a clear and comprehensive plan to reduce its pension liabilities, calling Melrose's recent warning of overburdened pension liabilities 'misleading.'

GKN said 'Melrose has not to date agreed any meaningful short-term actions to reduce the existing scheme liabilities.' The firm added that as part of the transaction with Dana, it will transfer £1,375m of gross pension and post-retirement medical scheme liabilities and £818 million of pre-tax deficit.

This comes in the wake of Melrose Industries formal proposal to inject up to £1bn into GKN's pension fund. Melrose on Monday warned GKN's shareholders that they would end up with shares in an Aerospace business overburdened with up to £3 billion of pension liabilities should they reject the takeover offer of GKN.

The firm said, however, that Melrose's £1bn plan would 'achieve less than GKN's own agreement with the Trustees, at a greater cash cost which would erode shareholder value,' and added that its shareholders 'deserve better.'

Commenting, GKN Group Finance Director, Jos Sclater, said: 'GKN has a clear and comprehensive plan to reduce its pension liabilities and eliminate the deficit in its UK pension schemes. We have a binding agreement with the Trustees which works for all stakeholders: the scheme members, the Trustees and the company and its shareholders.'

'A month ago, Melrose appeared to suggest that its plan to pay £150 million into the pension scheme was sufficient. Now it appears to have unveiled a £1 billion plan that would achieve less than GKN's own agreement with the Trustees, at a greater cash cost which would erode shareholder value. I think our shareholders deserve better.'

StockMarketWire.com
GKN said Dana on Monday increased its offer for GKN's Driveline business by $140m (£100m) to $1.77bn.

Under the terms of the deal, GKN will now receive $1.77bn in cash after deducting $1.0bn for the transfer of pension deficit to the combined Dana-GKN Driveline group.

GKN shareholders will continue to own 47.25% of the combined company listed on both the NYSE and LSE.

The firm said it intends to return up to £700m of cash to shareholders as soon as practicable following completion of the Dana-GKN Driveline transaction.

GKN reiterated that Melrose's final offer fundamentally undervalues the company and urged shareholders to reject the final offer as 'the true value of GKN is over £5 per share.'

GKN also confirmed that statements of shareholder support in respect of GKN published in The Sunday Telegraph and Sunday Times on March 25, were not verified and are therefore retracted.

The Sunday Telegraph article contained a comment by Anne Stevens, Chief Executive, that "Stevens says... she's convinced investors will back [GKN]." The Sunday Times article contained a comment by Jos Sclater, Group Finance Director, that "long-only shareholders are mostly supportive of existing management, and understand that the Dana deal and becoming a pure play aerospace company has, longer term, significantly more value than the Melrose bid."

Mike Turner, Chairman of GKN said: 'I welcome Dana's announcement today. This transaction, which along with Project Boost was initiated prior to the Melrose bid, offers by far the best strategic route forward for GKN Driveline. The challenges and opportunities of electrification mean that consolidation is required. By moving now, the Dana-GKN Driveline combination will be strongly positioned to be a global leader in this field.'

'For GKN, we believe this combination comes at an ideal time in the wider automotive cycle and, with this increase, what was already an excellent deal for both parties has just become an even better one for our shareholders. We believe that Melrose would find it extremely difficult to create equivalent value in the future from GKN Driveline if its offer were to be successful.'

it must surely be wrong for this t/o by melrose to be permitted

as i understand it, GKN is of strategic importance to uk, and there is no question but that melrose are solely after an asset-stripping exercise

Compulsory Acquisition of remaining GKN Shares 27.04.18
Melrose announces that it has now acquired, unconditionally contracted to acquire or received valid acceptances of the Offer in respect of more than 90 per cent. of the value of the GKN Shares to which the Offer relates and more than 90 per cent. of the voting rights carried by such shares. Accordingly, Melrose will now begin the implementation of the compulsory acquisition procedure under Chapter 3 of Part 28 of the Companies Act 2006 (the "Act") to acquire the remaining GKN Shares which it does not already own or has not already acquired, contracted to acquire or in respect of which it has not already received valid acceptances, as contemplated by the Offer Document.

GKN de-lists today 21.05.18