17th Dec 2019 12:32
(Alliance News) - Senior PLC noted Tuesday the announcement by key client Boeing Co on Monday that it is suspending production of the troubled Boeing 737 MAX jet, but will provide further clarification in the new year on any potential hit to Senior's own performance as a result in 2020.
Shares in the high-technology component manufacturer were down 9.2% in London on Tuesday at 169.12 pence each.
Senior said it continues to "work closely" with Boeing as the aerospace manufacturer seeks regulatory approval for returning its best-selling plane to the skies following a pair of fatal accidents.
"Senior will provide a further update on the potential implications to its 2020 performance once it has clarification from its customers," the company added.
Senior continued: "The board's expectations for the group's 2019 performance remains unchanged."
In 2018, Senior's pretax profit rose 17% to GBP61.3 million from GBP52.2 million the year prior, as revenue rose 5.9% to GBP1.08 billion from GBP1.02 billion the year before.
Senior is implementing a restructuring programme to drive improved results, as the company is dealing with some challenges in Flexonomic and Aerospace markets.
On Monday, Boeing said it will temporarily suspend production of its globally grounded 737 MAX jets next month as safety regulators delay the aircraft's return to the skies after two fatal crashes in Africa and South East Asia.
The Federal Aviation Administration said on Wednesday last week it could not approve the jet's return to service before 2020, even though Boeing had long said it planned to get officials' green light before the end of this year.
Boeing and the FAA have been under intense scrutiny for their responses to issues with the aircraft, including the flight-handling system involved in both accidents, the Maneuvering Characteristics Augmentation System.
By Paul McGowan; [email protected]
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