21st Jun 2016 06:26
LONDON (Alliance News) - Components and systems manufacturer Senior PLC on Tuesday said its Aerospace arm is trading in line with expectations, but its Flexonics business is continuing to face tough market conditions.
Senior said the Aerospace business has seen activity increase in line with its forecasts, boosted by additional work on new aircraft. Margins for the unit, however, will be lower in the first half of 2016 as the ramp-up on new aircraft production programmes continues.
For Flexonics, which makes expansion joints, flexible metal and teflon hoses and cryogenic equipment for pressure and piping systems, trading has continued to be weighed down by weak conditions in the truck and off-highway sector and ongoing softness in the oil and gas market.
First half margins for Flexonics will be weaker than anticipated, Senior said, due to a reduction in volumes and a change in the revenue mix compared to 2015.
Senior said the Aerospace arm is set to deliver stronger second half profit, helped by higher revenue and benefits from operational improvements. Flexonics, meanwhile, is set to see revenue in the second half sink further and be weaker than the first half. The group said it will continue to focus on cost-cutting at Flexonics, and these actions should help prop up profit in the unit.
By Sam Unsted; [email protected]; @SamUAtAlliance
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