(Reuters) - GKN (LON:GKN) Automotive owner Dowlais Group on Thursday forecasted current-year revenue to be similar to 2023 levels, citing expectations of a slight decline in global light vehicle production and its current order book.
Dowlais, spun-off from aerospace company Melrose Industries (LON:MRON) last April, reported adjusted revenue of 5.49 billion pounds ($7.03 billion) for the year ended Dec. 31, 2023, compared with 5.25 billion pounds reported in 2022.
GKN Automotive, which makes the lion's share of the group revenue, benefited from a nearly 10% increase in the global production of light vehicles fuelled by easing chip supply constraints, strong export growth from China, inventory restocking and steady consumer demand, the company said.
The unit supplies drive system technologies to the likes of Ford, General Motors (NYSE:GM) and Toyota.
However, current industry forecasts imply a slight decline in global light vehicle production in 2024, Dowlais CEO Liam Butterworth said.
The company expects a modest reduction in first-half revenue and sees an improvement in the second half on the back of new programme launches, Butterworth added.
Dowlais also announced a 50 million pound share buyback over 12 months starting April, and declared a final dividend of 2.8 pence per share on Thursday.
($1 = 0.7813 pounds)