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GKN (GKN)

Business description

GKN's business comprises four divisions, Driveline, Powder Metallurgy, Land Systems and Aerospace, which supply components to the automotive, aerospace and Off-Highway markets. These range from powdered and sintered metals to structural and composite components.

Aerostructures: A tale of two cities

Institutional Update | Engineering | 16/02/2015

A visit to two of GKN’s flagship aerospace sites highlighted both positives (skills in complex subassemblies constructed from especially challenging materials, and supply chain management) and negatives (the burden of building up volume and reducing quality problems on the A350 and A400M wing spars). Our key conclusions are that very high levels of work in progress suggest some risk to 2014e cash flow, but this could reverse faster than expected in 2015e. In the near term, we think GKN has its work cut out to address the ongoing quality, rate and production issues at the two sites to Airbus’s full satisfaction, despite that company’s conflicted position as both end-customer and supplier of major components.

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Stock data

Market cap.£4941.3m
Last close288.300p
High / Low (52 weeks)386.0p / 254.6p
Stock market listingLN
Forecast net debt (m)N/A
Forecast gearing ratio (%)N/A
TeamIndustrials
SectorEngineering

Price performance

%1m3m12m
Actual1.4(1.2)(17.3)
Relative *1.95.1(11.7)

* % Relative to local index