Strategic progress against our core objectives
Mike Turner CBE Chairman We have a clear strategy which is serving us well. Our overarching strategic objective is to sustain growth above the market and the Board continues to shape the Group’s strategic activities with a view to delivering that objective. During the year, we approved the acquisition of Fokker Technologies Group B.V. and the associated debt and equity funding. The acquisition of Fokker will add more than 20% to GKN Aerospace’s sales and is closely aligned to our strategic objectives: it strengthens our leadership position in aerostructures to number two, allows us to access new technologies and extends our global footprint in aerospace with sites in China, Turkey, Mexico and the Netherlands. The successful integration of Fokker will be an important objective for GKN Aerospace in 2016 but our people are experienced in this area. I am con dent that our enlarged GKN Aerospace division is well positioned for success. During the year, GKN Aerospace won new business with a total contract value of more than $3.5 billion and strengthened both its position with Boeing and its relationship with Airbus. GKN Driveline secured some £880 million of additional annualised sales in new and replacement business on important global automotive platforms, achieved a 5% organic increase in sales and maintained its pro t margin above 8%. GKN Powder Metallurgy increased its margin to 12% and entered into an agreement to form a joint venture in China, a key step towards becoming the rst Chinese supplier of international grade powdered metal. GKN Land Systems showed determination and had a reasonable year given di cult markets.
While economic uncertainty continues, our business proved to be resilient with a pleasing set of results. GKN Aerospace’s acquisition of Fokker and the outperformance of our automotive businesses against their markets helped ensure continued progress against our strategic objectives.
GKN plc Annual Report and Accounts