GKN on Monday issued its second profit warning in four weeks, predicting that annual profits could now be as much as 40 per cent lower because of significant cutbacks in production among global carmakers.

The automotive and aerospace-parts supplier, which makes drivetrains for cars and generates two thirds of its revenues from the sector, said it expected annual pre-tax profits to fall within a range of £150m to £170m, down from £255m last year. Performance at the higher end was “largely dependent on no further reductions in automotive schedules”.