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GKN PLC (GKN)

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Monday 12 December, 2005

GKN PLC

Trading Statement


                  GKN plc - Trading Update 12 December, 2005                   

After eleven months trading, the Group continues to make steady progress and is
on track to achieve the expected Trading outcome for 2005.

Automotive demand in the second half has been somewhat lower than expected
although Driveline's customer and model mix has limited its exposure to the
sharp volume declines seen on some large North American SUVs. Aerospace demand
has remained strong. After a strong start to the year, OffHighway markets have
weakened slightly in the second half.

High raw material and energy prices continue to impact performance and steel
surcharges, which had fallen in the first half, increased slightly thereafter.

The restructuring programmes continue to run to plan with charges for the year
expected to fall within the range previously indicated. Powder Metallurgy has
continued to improve productivity enabling us to extend the previously
announced plant consolidation programme to further accelerate recovery. This
will result in asset write-downs of around £25m in 2005 and a similar level of
additional restructuring costs being charged in 2006. A move of production to
low cost regions is also expected to lead to further asset write-downs and
impairment charges of some £20m in 2005 in other automotive businesses.

The Group's Preliminary Results announcement will be on 28th February, 2006.

For further information

GKN Corporate Communications

+44 (0)20 7463 2354