Sector movers: GKN expects solid progress in 2008
Engineering group GKN said it expects 2008 to be another year of solid progress with performance in line with its earlier expectations.
First quarter sales and profits have shown good growth against last year, it said.
"During the period we have continued to make good progress in our discussions with Airbus regarding the acquisition of the wing structures manufacturing facility at Filton and a potential significant work package award for the A350," said the group.
The group said underlying sales growth has been delivered in Driveline, Aerospace and
OffHighway with trading profits improving in all three divisions as benefits of currency translation offset unrecovered input cost increases.
Powder Metallurgy in the US has been held back by increases in scrap steel prices and plant shut downs as a result of the American Axle strike. Prices for scrap steel have risen to record levels in recent months and look likely to remain both high and volatile throughout the year.
The European business has continued to perform strongly. Overall sales and profits for the division in the quarter are slightly ahead of the 2007 equivalent period, it said.
"Looking forward for the year as a whole, market conditions remain generally supportive and our order books are strong," said the group.
Furniture retailer Galiform is up as it saw sales at its main Howden Joinery division rise by 11%, or 5.9% on a same-deposit basis, in the first four periods of the year ending 19 April.
However, the sector as a whole is down thanks to share price weakness among the DIY retailers. Home Retail Group gives back some of yesterday's gains while fellow Kingfisher is laid low by a downgrade from Goldman Sachs. The US bank now rates Kingfisher shares as a "sell" having previously been neutral on the stock, and has cut its price target by a fifth to 110p.
Top performing sectors so far today
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Automobiles & Parts 4,647.30 +3.33%
Health Care Equipment & Services 3,993.80 +1.93%
Mining 26,579.30 +1.39%
Software & Computer Services 441.00 +1.05%
Oil & Gas Producers 8,595.70 +0.43%
Bottom performing sectors so far today
Technology Hardware & Equipment 211.60 -6.16%
Mobile Telecommunications 3,583.10 -1.59%
Household Goods 6,285.60 -1.41%
Fixed Line Telecommunications 2,856.40 -1.34%
General Retailers 1,555.40 -1.28%
