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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)

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."

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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?