Redditch-based defence and automotive engineering group GKN has warned of potential job cuts in the UK as it unveiled an 8% fall in underlying pre-tax profits to £246 million.
The group said it was planning to move about 20% of production in its key Driveline automotive parts business to low-cost economies during the next three years.
GKN said the move would result in "a significant realignment" of Driveline's manufacturing operation, which employs about 1,000 people in Birmingham and a further 19,000 globally.
The firm refused to say how the cuts would affect the business, saying it had still to consult staff.
"It is far too early to go into detail about the impact on individual countries and staff," a spokesman for the group said.
GKN blamed a £17 million increase in its pension deficit charges for the decline in profits in the year to December 31.
The group added that competition in all its markets was expected to remain intense.
Its automotive operation serves major car makers such as VW, BMW, Ford and General Motors, while its aerospace operation supplies parts for military and civil aircraft.
The firm said there was now a more positive outlook for its major markets in contrast to the declines of recent years, with automotive production forecast to increase slightly in North America, while volumes in Europe are expected to be level or marginally ahead of 2003.
