GKN (LON:GKN) saw profits fall 16 percent in 2017, after a review charge and costs from its North American Aerospace division impacted on full year figures.
The group reported underlying profits before tax of £572 million, down 16 percent from a year ago, while organic sales grew 6 percent to £10.4 billion.
However, profits took a £145 million hit over the year, primarily due to a £112 million balance sheet review charge in its North American Aerospace division and further claims of £38 million.
The group confirmed a full year dividend of 9.3p per share, up 5 percent on a year previously, and added that full year expectations for 2018 would remain unchanged.GKN added that its expects the separation of its aerospace and driveline businesses to be completed in the middle of 2019.
The results come at a difficult time for the engineering group, who have recently fought off a takeover offer from corporate turnaround company Melrose. These latest results could prompt another offer from Melrose, which GKN management would be firmly against. Mike Turner, GKN’s chairman, said in a letter to shareholders this week: “[We believe] that Melrose is more focused on financial engineering than real engineering.”
Shares in GKN (LON:GKN) are currently trading down 0.30 percent at 428.72 (0908GMT).
