These shares have been on a downward slope for 12 months, the directors have not been buying and brokers are pessimistic. We know it is exposed to a weak dollar but does anybody what percentage of its turnover it sells to Ford. With talk in the US internets sites of it going into chapter 11 (where the suppliers are the hardest hit) this could be a critical factor in getting out fast. Would appreciate if an insider could help.

Ford will not be filing for chapter 11 protection in the forseeable future as you possibly know .... try GM.

Regards

Henry Ford

GKN profit warning
MoneyAM


GKN today reported Q3 group profit before tax of 4m and said it anticipates plant shutdowns.

Group sales were just ahead of last year on constant currencies, but GKN stated it was experiencing significant further deterioration in demand in automotive markets globally, and now sees Q4 and full year materially below its mid-year guidance, and some 20% down from last year.

The company anticiaptes plant shutdowns and workforce reductions

what are the views on gkn buy/sell

Very nice , next stop 180p.

Or 80p now

It has gone ex-rights today.
Interims due on 4 August.

Broker note from Socgen:
"Target price: We leave our target price unchanged. On 6.7x FY11e P/E, the shares are a good value against a sector trading on 13x. Our theoretical EV/EBITA model gives a 134p valuation (WACC 8.7%, cash conversion 80%, tax rate 25%, growth 2.5%, and 8.5% midcycle margin). Exclusion of the pension deficit adds 64p to this; we thus set our target price at 145p to set a premium on future changes in pension liabilities."

Business Financial Newswire
"GKN said today sales were down 3% and underlying sales down 22% (1.134bn) in the year to end-December. Trading profit of 152m was down 69m.

The engineering group said trading margin recovered to 6.5% in the fourth quarter.

GKN said the results reflect the decline in Automotive, Powder Metallurgy and Off-Highway sales, a strong performance in Aerospace and the benefits from restructuring.

Automotive (including Powder Metallurgy) reported 7m trading profit, despite underlying sales down 25%.

Sales were up 48% in Aerospace with trading profit up 61% to 169m, with a strong first year contribution from Filton. Underlying sales were up 2%.

OffHighway underlying sales were down 43%, showing a 12m trading loss.

The restructuring programme continued with around 3,500 people leaving the Group in 2009.

The group reported positive free cash flow of 136m (2008: 38m outflow).

Net debt of 300m at 31st December 2009, benefited from rights issue net proceeds of 403m and strong operating cash flow.

No final dividend to be paid in respect of 2009, but the Group intends to pay an interim dividend in 2010. "

Yet again, the rumour of MAGNA bidding for GKN doing the rounds, hence the increase in the sp of both companies today.

perhaps time to consider buying into their new stategy.

21 July 2010

GKN: Trading update - First half 2010 results ahead of expectations

"GKN reports that its trading performance has continued to improve strongly
during the second quarter of 2010, with demand in automotive markets being well
ahead of expectations. Accordingly, the Company will report management profit
before tax of not less than 170 million for the six months ended 30 June
2010. Management will give guidance on the outlook for the second half of 2010
at its results meeting on 3 August 2010."

harry made a very nice profit on CFD this morning sp slipping back may go back in now that results are known to be on the rise.

Looks like all the engineering firms have had a good 6 months restocking all those companies who have de-stocked over the recession. However the rumour is that inventories are now high enough & therefore the parts suppliers are now going to have a tricky time again. I think GKN is reaching it's high & am going to stay out for a while.

StockMarketWire.com
Automotive and aerospace components manufacturer GKN bounced back into the black with a first half pre-tax profits of 180m compared with a loss of 16m last time.

Reported sales in the six months ended 30 June improved to 2.54bn from 2.06bn in the first half of 2009.

The group said the results reflect the strong recovery in Driveline, Powder Metallurgy and Land Systems sales relative to a weak first half of 2009, a good performance in aerospace and the on-going benefits from restructuring.

Sales on a management basis rose 25% (536m) to 2.7bn and the firm made a trading profit of 202m - up 177m.

Net debt fell by 98m to 202m and the firm declares an interim dividend of 1.5p (2009: nil).

StockMarketWire.com
Global engineering group GKN said this morning it has continued to make strong progress through the third quarter and expects a solid close to the year.

Group sales in the quarter to end-September totalled 1,336m, a 21% increase over the comparable period in 2009.

Favourable currency translation and acquisitions increased sales by 40m and therefore underlying sales increased by 17%.

Third quarter trading profit was 100m, a 92% increase over the comparable period in 2009, or an 87% underlying increase.

The Group's profit before taxation was 88m.

Net debt end-September was 212m (3end-June 2010: 202 million).

GKN said overall demand during the third quarter remained at similar levels to the second quarter, with the European seasonal decline less than normal and strong demand in North America and Asia.

GKN's Automotive (Driveline and Powder Metallurgy) Q3 sales increased by 34% compared with last year, to 800m (2009: 598m), up 28% on an underlying basis.

Trading profit was 55m (2009: 14m).

Overall, Automotive trading margin was 6.9%, with Powder Metallurgy trading margin at 7.9% and Driveline at 6.6%.

Driveline's profits were held back somewhat during the quarter as a result of additional temporary labour costs in Europe to meet higher than expected customer demand during the holiday season and increased raw material costs which should largely be recovered over coming months.

Aerospace markets continued to perform broadly in line with expectations although the seasonal decline in third quarter sales in Europe proved somewhat greater than normal. It is expected that this shortfall will be caught up by the year end.

Aerospace's third quarter sales were down 3% on last year at 349m (2009: 361m) and down 7% on an underlying basis.

Trading profit was 39m (2009: 43m) and the trading margin was 11.2%.

Compared with last year, Land Systems' third quarter sales were up 30% at 165m (2009: 127m) with trading profit of 8m (2009: trading loss of 3m) and a trading margin of 4.8%.

The Group intends to issue its full year results announcement on 1st March 2011.