Volvo Aero acquisition boosts GKN profits

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GKN Aerospace's October 2012 acquisition of engine components maker Volvo Aero "is performing well against plan" and "made a strong financial contribution" during the first quarter, says the UK manufacturer.

Quarterly trading profit rise 50% to £54 million ($83 million) as sales rose 47% to £544 million, including 3% organic growth.

An interim management statement says the ramp-up of commercial programmes more than offset the decline in military sales.

Organically, trading profit was down by £1 million, largely due to the phasing of sales on new commercial programmes. The former Volvo Aero business, now called GKN Aerospace Engine Systems, generated sales of £161 million, trading profit of £19 million and trading margin of 11.8%.