Highlights
Group results reflect GKN's continued outperformance of its end markets and the contribution from GKN Aerospace Engine Systems (formerly Volvo Aero)
Sales increased 12%, up 2% on an organic basis
Management trading (operating) profit up 10%
Trading margin of 8.3%, after incurring £25 million of previously announced restructuring charges
Profit before tax up 5%
Reported profit before tax of £134 million (2012: £279 million) lower, primarily due to foreign exchange rate changes impacting the mark to market value of foreign exchange contracts
Earnings per share 3% lower due to the higher tax rate of 20%, as previously guided, and the additional shares issued to finance the acquisition of GKN Aerospace Engine Systems
Return on average invested capital reduced to 16.6% (2012: 17.2%), excluding GKN Aerospace Engine Systems
Positive free cash flow of £77 million (2012: £28 million)
Net debt of £928 million (31 December 2012: £871 million)
"GKN has continued to make good progress against our strategy to grow a market-leading global engineering business. Although some of our end markets remained challenging, we continued to outperform and are reporting good underlying financial results with further benefit from last year's acquisition, GKN Aerospace Engine Systems (formerly Volvo Aero), which is performing well. The first half met our expectations and, with planned restructuring costs now behind us, we expect a stronger second half performance and to deliver good progress in 2013."
