GKN ‘encouraged’ by start to year, but still cautious

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FTSE 100 engineering company GKN has warned that its “good” start to the year could prove fleeting.

In a trading update on Wednesday, the group said its aerospace business had proven somewhat more sluggish than it had expected in the opening months of 2017, but the automotive market was brighter than it had predicted. Currency shifts continued to help, it added.

CEO Nigel Stein said:

The encouraging growth rate achieved to date may not be sustained as the year progresses and comparators get tougher, nevertheless we expect 2017 to be another year of growth.

The group announced plans to shut its Somerset helicopter factory late last year.

First-half results are due in July.

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