GKN profits hit by disappointing aerospace trading and claims

The US aerospace division saw a'significant reduction in profit margins in the third quarter

Shares in FTSE 100-listed engineering company GKN PLC fell Friday, after it warned charges will hit its profit for the full year, and it reported a disappointing third quarter of 2017, with operational challenges and an underperformance in the United States leading to lower trading margins.

The FTSE 100 company also said it was aware of two external claims, one in aerospace and one in driveline, that were expected to result in a £40m charge in the fourth quarter.

"Frankly this feels like walking down the street and being mugged", he said.

Shares in the group dropped by more than nine per cent in early trading.

As a result, the company now expects management profit before tax for 2017 to be only slightly above 2016 levels.

Finance Director Adam Walker is due to leave in November.

Engineering group GKN has brought forward a trading update to report two "probably significant external claims" that will impact the balance sheet.

Stein said it would take a couple of years before margins improved in its North American aerospace business, adding that recent performance had been below his expectations.

It said the headwinds would not ease in the final quarter.

In the third quarter of the year, GKN reported good sales growth, with its Driveline segment outperforming its market and Aerospace ending up higher in sales than the year before, despite operational challenges for the division in North America, which is expected to incur a GBP15.0 million charge. It declined to give further details on the claims.

Stein said the company is "redoubling our efforts to improve our operational performance" at the U.S. aerospace business as it taking action to improve margins across the group. He said they were not litigation and did not expect them to be recurring.

In its automotive division, third quarter sales were well ahead of global industry production rates, which rose 2%.

GKN has been the subject of perennial talk that it could be broken up between its dominant automotive and aerospace units.

Related News:

  • CrossAmerica Partners LP (CAPL) Shares Bought by Goldman Sachs Group Inc

    TRADEMARK VIOLATION WARNING: This story was originally published by Dispatch Tribunal and is the property of of Dispatch Tribunal. Mountain Lake Investment Management Llc decreased Crossamerica Partners Lp (CAPL) stake by 12% reported in 2017Q2 SEC filing.
    After demonetisation, GST, ban on firecrackers adds to traders' woes

    After demonetisation, GST, ban on firecrackers adds to traders' woes

    To this, the Bench said "very frankly" it doubted whether the suspension of sales has dampened Diwali celebrations. The court said that those who have firecrackers can burst them till 11 pm.
    Bengal covering up dengue outbreak as 'unknown fever': Left Front

    Bengal covering up dengue outbreak as 'unknown fever': Left Front

    She also appealed to the people of the hills and Jangalmahal not to listen to any form of instigation or rumours. The North-24 Parganas district magistrate has been asked to initiate action.
  • The old round pound: Everything you need to know

    The production of the new coins follows concerns about round pounds being vulnerable to sophisticated counterfeiters. People can also deposit them into any of their usual high street banks through the Post Office after this date.
    Kenyan police use teargas to disperse opposition protesters in 3 cities

    Kenyan police use teargas to disperse opposition protesters in 3 cities

    The post Protests banned in Kenya after opposition leader pulls out of presidential election appeared first on PBS NewsHour . Judges at the Supreme Court directed IEBC to conduct fresh presidential elections before expiry of a 60-day period.
    Shakespeare confirms Adrien Silva training with Leicester

    Shakespeare confirms Adrien Silva training with Leicester

    Leicester are monitoring Bacary Sagna's situation as boss Craig Shakespeare looks to bolster his team's defence. He said: 'We have looked at him before but we haven't spoken about him recently.
  • Bayer sells units to be able to complete Monsanto takeover

    Bayer sells units to be able to complete Monsanto takeover

    It said it would use the proceeds of the sale to partially refinance the planned acquisition of Monsanto , which it still hopes will close in early 2018.
    Twelve Apostles evacuated, fire contained

    Twelve Apostles evacuated, fire contained

    Guests from hotel being evacuated. "We are very busy at the moment trying to make sure that everyone is safe", he said. A further 10 firefighters are on standby and are attending to flare-ups at the five-star 12 Apostles Hotel.
    Indian Woman Sends SOS After Being Tortured by Employer in Saudi Arabia

    Indian Woman Sends SOS After Being Tortured by Employer in Saudi Arabia

    The woman informed that she is living in the city of Dawadmi in Saudi Arabia, which is 200 km from the capital Riyadh. In her video message, the woman has plead to be rescued from the clutches of her abusive employers.
  • Gunmen loot bank in Shopian district

    Gunmen loot bank in Shopian district

    On Thursday, gunmen looted over five lakh rupees from a branch of the J&K Bank in Bijbehara area of Anantnag district. Gunmen on Friday looted cash from a branch of the Jammu and Kashmir Bank in south Kashmir Shopian district.
    Tamil Nadu government approves 7th Pay Commission recommendations; liquor prices raised

    Tamil Nadu government approves 7th Pay Commission recommendations; liquor prices raised

    It is also preparing to increase the salaries of government employees and continue with the plethora of subsidy schemes too. The cabinet took the decision based on a report submitted by a high-level committee led by finance secretary K Shanmugam.
    Irish Central Bank Lifts Growth Forecasts

    Irish Central Bank Lifts Growth Forecasts

    The growth in full-time employment is particularly notable and outpaces overall employment growth as part-time work increasingly becomes full-time.


Most liked

Linkin Park singer in posthumous Carpool Karaoke show
Linkin Park will honor their late frontman with a sold-out tribute concert at the Hollywood Bowl on October 27. Bennington , who struggled with depression, committed suicide by hanging on 20 July this year.

Hackers accessed visitors' credit card info from 41 hotels in 11 countries
Hyatt announced today that its payment systems were breached, exposing credit card data from 41 hotels in 11 countries. The largest number of Hyatt properties impacted were based in China with 18 hotels and Mexico with 4 hotels.

Why You Should Still Hold ICICI Bank Limited (NYSE:IBN) Stock Today
It represents a security's price that, if achieved, results in a trader recognizing the best possible outcome for his investment. Whereas, in last 21 trading days (one month) was moved up -9.43% and plunged in last 63 trading days (quarter) of -10.31%.

Brooklyn home inventory hasn't been this low in a decade
The days on market was 81, down from 92 last year and the listing discount was 2.8 percent, up from less than a percent last year. According to Corcoran's report, the median is $733,000, and the average is $856,000, based on 1,670 closed sales.

Chelsea 2/5 to triumph in Saturday's Premier League game with Crystal Palace
Physio Room do not believe it's likely that either of Alvaro Morata or N'Golo Kante will be available for Saturday's game. Chelsea have won the Premier League title in two of the past three seasons under Jose Mourinho and then Antonio Conte.

Baxter International Inc (BAX) EPS Estimated At $0.59
Finally, BidaskClub downgraded Baxter International from a "strong-buy" rating to a "buy" rating in a report on Monday, July 31st. Also, it has an estimated price-earnings (P/E) multiple of 23.14 and a trailing 12-month price-earnings (P/E) multiple of 37.63.

Transport for London will fight off Uber's appeal in court
The appeal hearing is likely to be on December 11, according to a spokesperson for the United Kingdom judiciary office. The new boss has apologised for "the mistakes we've made" and accepted that the company had "got things wrong".

Former chancellor calls on May to sack current chancellor
The Tory backbencher told Iain Dale the Treasury needed a "can do man", but at the moment it had a "can't do man" with Mr Hammond. Asked by a reporter if May had full confidence her finance minister, the spokesman said "Yes".

Flipkart offers Big Diwali Sale to attract costumers
Both the e-commerce companies who are rivals of each other declare their sales on the same date which is quite surprising. The company has also partnered with HDFC and it will be giving 10% instant discount to its credit and debit card holders.

Gridiron Game Mode Announced for Call of Duty: WWII
It's a studio favorite for domination, hardpoint, and TDM, and we think it could be a standout for the competitive season ahead. However, because of the World War 2 setting, you'll be using an old leather football .

CenturyLink, Inc. (CTL), Facebook, Inc. (FB)
The institutional investor acquired 62,986 shares of the technology company's stock, valued at approximately $1,504,000. The Company is engaged in providing an array of communications services to its residential and business customers.

Robert Kubica test with Williams F1 team successful
Both are in the frame to replace 36-year-old Felipe Massa , should Williams decide not to renew the Brazilian's contract. All a spokesman for the British team would say about the Pole's run in a 2014 vehicle was that it had been "successful".

Firefighters: Burned woman said 'Eric' set her on fire
Prosecutors say Quinton Tellis set Jessica Chambers' auto on fire near a tree farm in Courtland, Mississippi, on December 6, 2014. When Haley and two other firefighters found Chambers, she was in the middle of the road, wearing only her underwear.

Officer reportedly shot in New Orleans East
After a call of an officer's life "in danger" in New Orleans East, an NOPD officer has died in the line of duty. There was a large police presence in an apartment complex near where the shooting happened.

For Your Information: Domestic Violence Awareness with Haven House
Thousands of dollars in in state grants are going toward helping victims of domestic abuse in the Southern Tier. That is more than 10 million women and men per year.