Aerospace and automotive group GKN said it expects full-year pre-tax profits before financing to meet the market consensus and 2008 should be another year of progress.
The Redditch-based firm said group profit in the 11 months to November improved solidly over last year, with its Driveline, aerospace and off-highway businesses all ahead.
It said year-to-date performance in its powder metallurgy division was marginally below 2006 due to higher raw material costs and operational disruption from the completion of restructuring measures in the second half.
The further weakening of the US dollar has been partially offset by the recent strengthening of the euro and other currencies.
The adverse translational impact of currency in the second half is anticipated to be lower than the £5 million reported in the six months to June.
"Our strategic restructuring programme remains on track for completion around the end of the year and we will enter 2008 with strong order books in all major businesses," GKN said in a trading statement ahead of its full year results on February 28. "Whilst economic conditions in some markets are uncertain, the strength of our order book gives us confidence 2008 will be another year of solid progress."
It said market conditions in the second half had been much as anticipated.
Whilst car and light vehicle production in North America is currently forecast to be fractionally lower than expected, Western Europe, China and India are all slightly higher. Agricultural markets in Europe and North America remained firm and, although US light construction demand eased, mining and heavy construction sectors remained sound. Demand continues to be strong in civil and military aerospace. The firm will report its 2007 results on February 28.
Shares closed down 27.25p at 285.25p.
