GKN overcomes Japan woes to lift profits

CAR and aircraft parts maker GKN lifted half-year profits yesterday as it overcame a £12 million dent to its orders caused by the Japanese earthquake and tsunami in March.

The firm, which makes driveshafts for almost half of all new cars, had previously warned that it expected serious disruption and knock-on effects from the problems experienced in Japan.

These were most keenly felt in the United States, as production there was cut back after component supplies were restricted.

In Japan itself, the firm was helped by it being a supplier to Mitsubishi and Nissan, which have plants away from the area directly affected by the disaster, and the assistance given to exports during the aftermath.

The group said direct supplies to Japan had recovered but are still picking up in other areas such as the US, where it supplies Toyota and Honda.

Car production will rise by 6 per cent over the remainder of the year as normal output resumes, it estimates, with global car production overall tipped to increase by 4 per cent in 2011 against 1.5 per cent in the first six months.

GKN's total sales rose by 11 per cent to 3 billion in the six months to June with underlying profits up 22 per cent to 247m.