23rd Apr 2015 06:52
LONDON (Alliance News) - Technology components and systems manufacturer Senior PLC on Thursday said trading in the year to date has been broadly in line with its expectations and said its full-year profit estimates are on track as some short-term challenges were offset by beneficial foreign exchange movements.
The company said its Aerospace division was boosted by healthy demand in the large commercial aircraft sector in the year to date, with Boeing and Airbus having delivered a combined 318 aircraft in the first quarter, up 5% year-on-year. The group said progress was made in industrialising new aerospace programmes in the period, though at a slower rate than it had anticipated. Lower aluminium prices in the period also cut its income from machined metal waste year-on-year.
In the Flexonics division, which makes emission control and fuel distribution products for the transport sector along with engineered expansion joints and dampers for industrial process control applications, North American truck volumes were strong, though there was a softening of demand for agricultural and mining vehicles, while industrial activity in Europe and Brazil was also subdued.
Senior said its expectations for adjusted pretax profit for the full year, which excludes loss or profit on sales of fixed assets, acquisition costs and amortisation of intangible assets arising on acquisitions, remain unchanged, though it does expect its earnings to be more second-half weighted than has historically been seen.
Senior said it expects to make further progress over the year, though the decline in build rates for the Airbus A330 is likely to have an impact sooner than anticipated, and the group said a number of new aerospace programmes are taking longer to ramp up build rates. The low oil price is also having an impact on the rate of conversion to natural gas engines in North America, Senior added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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