Business News

GKN Driveline ups sales by a third, but profit down

Ljubljana, 04 August (STA) - GKN Driveline, a British-owned car industry supplier based in Zreče (NE), increased its production by almost a third last year to generate EUR 107 million in revenue, up 30% compared to 2017. On the other hand, net profit was down by 17% to EUR 4.8 million, the company said in the annual report.

The subsidiary of the British multinational GKN Industries producing constant-velocity joints, tripod joints and drive shafts for car industry increased sales mostly on account of sales outside the group.

These sales approached EUR 50 million, which is almost double of that in 2017, with sales to Renault, Suzuki, Ford, Magna Steyr and Jaguar increasing significantly. On the other hand, sales to the Fiat plant in Serbia were down.

Sales within the group were up by more than EUR 5 million, and were mostly generated on EU markets. Sales to GKN Industries plants in Turkey, the US and Malaysia dropped due to a lower demand.

On the domestic market, GKN Driveline generated slightly less than EUR 8 million in sales revenue, on a par with the result in 2017.

The company, which had almost 450 employees at the end of last year, plans to further increase sales this year, but extreme growth like last year's is not expected.

The growth in 2018 is a consequence of new projects in cooperation with Mercedes, Volvo, Jaguar and Land Rover starting in the second half of 2017.

The financial plan for 2019 envisages sales of EUR 108 million, which amounts to the daily production of 21,000 constant-velocity joints, 15,800 tripod joints and 6,700 drive shafts.

The actual sales in the first months of the year is above plans, so is the profit, the company said.

The Zreče-based company plans to spend EUR 3 million on investment, mostly in machines and in overhauling the warehouse and a part of the production hall.

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