Export prospects boosted for GKN
Friday 10 March 1995
GKN believes the Government's decision to award a £500m helicopter order to its Westland division should earn it milllions from export markets around the world.
Analysts, who were yesterday revising their GKN profit forecasts, estimated that Westland could sell 700 of its EH101 helicopters over 30 years.
Despite objections from the RAF, which favoured the rival Chinook helicopter made by Boeing, the Government is ordering 22 of the Westland helicopters. Eight Chinooks have been ordered.
"Our fear was that the EH101 would be difficult to sell if our own government rejected it,'' a spokesman said.
GKN, which yesterday reported a doubling of pre-tax profits to £200m, saw only an average performance from Westland, which it bought last March.
Westland made operating profits of £19m, in line with expectations, having suffered from order cancellations in a weak civil aerospace market.
GKN said revenue from the EH101 order should begin to feed into Westland this year, although the first profits could be a couple of years away.
Westland is expected to tender for a helicopter order from the Italian government, and the US Navy is reviewing its requirements. The most lucrative markets, however, are in the Middle and Far East. Yesterday's deal will give GKN a boost for a forthcoming defence equipment exhibition in Kuwait.
One analyst estimated that the EH101 could achieve additional sales of around £2bn in the medium term, plus valuable after-market maintenance contracts.
GKN yesterday reported a 61 per cent rise in operating profits to £122m in its automotive and engineered products division. The company saw an upturn in most of its main automotive markets, particularly in Continental Europe. British and North American automotive markets remained reasonably strong.
One analyst raised his forecast for 1995 pre-tax profits to £274m from £255m due to strong demand from the US car market.
Turnover rose 17 per cent to £3.09bn. The final dividend of 13.5p makes 21.5p for the year, up 1p. Shares, up 18p at one stage, closed 14p up at 579p.
- 1 California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
- 3 Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
- 5 We have six months to save the world, says leading economist
California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
Sepp Blatter resigns: FBI are investigating outgoing Fifa president, claims report
Alton Towers crash: Four seriously injured and 16 guests trapped as Smiler ride carriages collide
Gay teenager 'forced to have sex with his own mother' to 'cure' his homosexuality, campaigners in India say
Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...