Civil sales offset military downturn at GKN

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GKN Aerospace continues to ride strong growth in civil aircraft orders, posting a 7% first-half rise in sales, to £770 million ($1.21 billion), with operating profit growing at the same rate, to £86 million, despite slowing build rates on key military programmes.

Higher sales to the Airbus A320, A330, A380 and Boeing 787 programmes, in particular, more than offset lower production on military programmes including Boeing C-17, F-15 and F-18. GKN expects the pattern to be repeated in the second half.

The previously announced SEK6.9 billion ($994 million) acquisition of Volvo Aero is expected to close at the end of the third quarter.

GKN expects the business to turn a trading profit in the fourth quarter but have a negative impact on group profit owing to integration costs and acquisition accounting adjustments.