CHIEF EXECUTIVE’S REVIEW
Acquisition of Fokker
Nigel Stein Chief Executive
The most signi cant development was the acquisition of the leading Dutch aerospace company Fokker in October 2015. The acquisition is covered extensively later in this report. The business brings excellent technology which complements our own in aerostructures and gives us capability in new areas such as electrical wiring and landing gear. Fokker has an impressive facility in China that will help boost GKN Aerospace’s activity in this important region, and it has good positions on successful programmes such as the Lockheed Martin F-35 and the Airbus A350 platforms where output is growing. Fokker’s strength is based on the quality of its people who are an excellent addition to the GKN team. I am con dent that Fokker will prove an important complement to the Group. A er extensive planning, the integration process is now under way.
I was pleased with our performance in 2015. We continued to grow and delivered pro t before tax in line with our plans, despite more challenging conditions in some of our markets. We kept our focus on technology and operational excellence which underpin our position as leaders in our markets, at the same time taking some signi cant steps forward in pursuit of our strategy. I am con dent that as we enter 2016, GKN is an even better business than it was a year ago.
Performance against our markets
Our strategy is aimed at outgrowing our markets on an organic basis, and in 2015 GKN Driveline and GKN Powder Metallurgy achieved that, overcoming di cult market conditions in China and Brazil through strong growth in Europe. GKN Driveline’s sales grew by 5% organically, comfortably ahead of the growth in global car production (1.4%), with margins moving slightly ahead. GKN Aerospace is in a period of transition, with some of our newer commercial programmes ramping up and mature military programmes winding down. In 2015, commercial aircra sales increased by 6% while military sales declined 9%. Overall, sales in GKN Aerospace increased 2% organically. The switch from mature to new programmes put
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