The parent company of GKN Automotive, Dowlais Group, anticipates that its annual revenue for the current year will be comparable to the levels observed in 2023. This projection is predicated on the company’s expectation of a slight decrease in global light vehicle production and existing orders in its backlog.
Following its spin-off from aerospace firm Melrose Industries in April of last year, Dowlais Group reported an adjusted revenue of 5.49 billion pounds for the year ending on December 31, 2023, compared with 5.25 billion pounds reported in 2022, with a significant portion of this revenue being attributed to GKN Automotive.
The automotive division experienced a surge in revenue as a result of an almost 10% rise in global production of light vehicles, driven by improvements in chip supply, robust export growth from China, inventory restocking, and consistent consumer demand. GKN Automotive supplies drive system technologies to major industry players such as Ford, General Motors, and Toyota.
Nevertheless, CEO Liam Butterworth highlighted that current industry forecasts indicate a slight decline in global light vehicle production for 2024. Consequently, the company is expecting a modest decrease in first-half revenue, with an anticipated improvement in the second half due to the launch of new programmes.
Additionally, Dowlais Group has announced a 50 million pound share buyback over 12 months commencing in April, and declared a final dividend of 2.8 pence per share on Thursday.
In summary, Dowlais Group is preparing to face a demanding year in terms of global light vehicle production, but remains sanguine about its ability to maintain stable revenue levels.
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