GKN cuts Q4 guidance as demand drops
Car and aircraft technology company GKN said Monday that it expects pretax profits for the fourth quarter to be materially below its mid-year guidance as turbulence in the automotive sector deepens.
Unemployment down in 2007 final quarterIn a trading update, the company said that the fourth quarter will be hit by weakness in the automotive industry as well as the Boeing strike, and that it now expects full year pretax profits to fall around 20 percent from 2007.
In response, GKN will shut down plants, introduce short-time working and cut its workforce, it said without specifying further.
For the third quarter, the company said pretax profits fell by 4 million pounds and that, on a constant currency basis, sales were slightly ahead of last year.
(Reporting by Ben Deighton, editing by John Stonestreet)
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