TIDMSNR 
 
RNS Number : 5108K 
Senior PLC 
21 April 2010 
 

 
Senior plc 
Interim Management Statement for the three months ended 31 March 2010 
Ahead of its Annual General Meeting on Friday 23 April, Senior plc ("Senior" or 
"the Group"), an international manufacturer of high technology components and 
systems, for the worldwide aerospace, defence, land vehicle and energy markets, 
issues this Interim Management Statement for the three-month period ended 31 
March 2010 (the "quarter"). 
Trading 
Trading during the three month period to 31 March 2010 was ahead of the Board's 
expectations.  Underlying revenue was slightly better than anticipated and the 
Group's revenue and profit benefited from more favourable foreign exchange 
movements than expected.  Operating margins were also stronger, as cost control 
and operating efficiency improvements continued to be realised.  The Group's 
operating cash flow remained healthy with net debt falling to GBP96.6m at the 
end of the quarter (31 December 2009: GBP102.3m), despite the adverse effect the 
stronger US dollar had on the Group's reported debt. 
Markets and Operations 
Within the Aerospace Division (59% of Group sales in 2009), production of large 
commercial aircraft, the Group's largest market sector, remained healthy with 
Boeing and Airbus delivering a combined 230 aircraft in the quarter (Q1 2009: 
237 aircraft).  Their combined net order in-take was 143 aircraft (160 less 17 
cancellations) for the three month period, a marked improvement from the 4 
aircraft (50 less 46 cancellations) ordered in the first quarter of 2009. 
Demonstrating their confidence in the future, Boeing and Airbus both recently 
reiterated their positive outlook and announced planned increases in 2011 build 
rates for their respective 777 and A320 aircraft.  Importantly for Senior, given 
the significant content the Group has on the aircraft, the flight test programme 
for Boeing's 787 aircraft is making good progress with Boeing stating that they 
expect to begin deliveries to customers, as scheduled, in the fourth quarter of 
this year.  Elsewhere in the Aerospace Division, markets were broadly as 
anticipated.  Demand in the business jet market continued to stabilise but build 
rates of regional jets at Bombardier and Embraer weakened.  Sales to the 
military and defence market were strong, with the Group benefiting from 
increasing production of Lockheed's C130 transport aircraft and Sikorsky's Black 
Hawk helicopter. 
The Flexonics Division accounted for 41% of Group sales in 2009, of which 
approximately half were derived from industrial markets (such as oil and gas, 
coal fired power generation, renewable energy, nuclear and chemical processing) 
and half from land vehicle markets (such as passenger cars, commercial trucks 
and off-highway vehicles).  The first quarter of 2010 saw mixed industrial 
markets, with some product and geographical markets showing increases, as the 
effect of de-stocking eased and economic confidence improved, whilst others 
remained more challenging.  Sales of large expansion joints remained strong, but 
recent order in-take suggests the second half of the year may see lower volumes. 
 Production of passenger vehicles was well ahead of the levels seen in the first 
quarter of 2009 across most of the Group's geographical markets.  As 
anticipated, volumes to the heavy truck market were weaker, following the spike 
seen in the final quarter of 2009 when large numbers of diesel engines were 
manufactured ahead of the implementation of tighter emission legislation. 
Demand for the Group's heavy truck products is expected to stabilise as the year 
progresses.  Overall operating margins for the Division were strong in the 
quarter, due to the improved volumes and the continuing and effective control of 
costs.  However, increasing raw material prices may put some pressure on margins 
later in the year. 
Outlook 
The Group's strong first quarter performance, and the recently improved outlook 
for large commercial aircraft build rates, now leads the Board to expect 2010 
adjusted profit before tax(1) to exceed market expectations(2) and, 
consequently, to be well ahead of the 2009 outcome.  Looking further ahead, 
Senior is expected to benefit from the increasing build rate of the Boeing 787 
aircraft, Airbus and Bombardier bringing their respective A350 and CSeries 
aircraft into service, the North American heavy truck market recovering, 
renewable and nuclear energy markets growing and the Group's increased customer 
focus leading to new opportunities.  Therefore, future prospects for the Group 
remain encouraging for the remainder of the year and over the longer term. 
The results for the six-month period to 30 June 2010 will be announced on Monday 
2 August 2010. 
+-------+--------------------------------------------------------------+ 
| Note: |                                                              | 
+-------+--------------------------------------------------------------+ 
| 1.    | Adjusted profit before tax is before loss/profit on sale of  | 
|       | fixed assets and amortisation of intangible assets arising   | 
|       | on acquisitions.                                             | 
+-------+--------------------------------------------------------------+ 
| 2.    | Market consensus, as reported by Bloomberg prior to release  | 
|       | of this announcement, is for 2010 adjusted profit before tax | 
|       | of GBP48.5m.                                                 | 
+-------+--------------------------------------------------------------+ 
Further information 
+------------+----------------------------+------------------------+ 
| Mark       | Group Chief Executive,     | +44 (0) 1923 714 738   | 
| Rollins    | Senior plc                 |                        | 
+------------+----------------------------+------------------------+ 
| Simon      | Group Finance Director,    | +44 (0) 1923 714 722   | 
| Nicholls   | Senior plc                 |                        | 
+------------+----------------------------+------------------------+ 
| Clare Hunt | Finsbury Group             | +44 (0) 20 7251 3801   | 
+------------+----------------------------+------------------------+ 
About Senior 
Senior is an international manufacturing group with operations in 11 countries. 
It is listed on the main market of the London Stock Exchange (symbol SNR). 
Senior designs, manufactures and markets high technology components and systems 
for the principal original equipment producers in the worldwide aerospace, 
defence, land-vehicle and energy markets.  Further information on Senior plc, 
may be found at: www.seniorplc.com 
Cautionary Statement 
This announcement contains certain forward-looking statements.  Such statements 
are made by the Directors in good faith based on the information available to 
them at the time of the announcement and they should be treated with caution due 
to the inherent uncertainties underlying any such forward-looking information. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IMSPGUMWCUPUGQU
Senior (LSE:SNR)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Senior Charts.
Senior (LSE:SNR)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Senior Charts.