Trading Statement (3148J)
June 29 2011 - 2:00AM
UK Regulatory
TIDMSNR
RNS Number : 3148J
Senior PLC
29 June 2011
Senior plc
Pre-Close Period Statement
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 trading update for the six-month period to 30 June 2011
(the "first half").
Trading
The Group continued to trade strongly in the second quarter and
the Board now expects adjusted profit before tax(1) for the first
half of 2011 to be ahead of its previous expectations. Cash
generation has been healthy, but net debt is expected to be
slightly higher at the end of the first half than the GBP63.7m
level reported at the end of 2010, principally due to the
acquisition of Damar Aerosystems ("Damar") for GBP15.3m at the end
of March.
Markets and Operations
First half revenues are running marginally higher than
anticipated with the recovery in the global truck markets
benefiting Senior's North American and German Flexonics operations
and the acquisition of Damar, together with increased production of
the C130J military transport aircraft and the Boeing 787,
benefiting the Group's Aerospace Division. Elsewhere, demand has
been broadly in line with expectations, except for the European car
market which has been slightly weaker. The overall revenue
increase, and the Group's ongoing focus on operational excellence,
is expected to result in first half operating margins for both
Divisions being ahead of those reported for the first half of
2010.
2011 has seen further positive news for the large commercial
aerospace market (the most significant market segment for Senior),
with Boeing and Airbus announcing further increases in the build
rates for their main platforms, such that they now jointly
anticipate delivering over 40% more aircraft in 2014 than they did
in 2010. Their confidence is underpinned by order books of nearly
seven years and strong order intake in the first half, as evidenced
by announcements at last week's Paris Airshow.
Outlook
The Group's strong first half performance, together with a
generally healthy outlook for the remainder of the year, now leads
the Board to expect 2011 full year adjusted profit before tax(1) to
be ahead of its previous expectations.
Looking further ahead, the underlying fundamentals of the
business remain healthy. The large commercial aerospace industry is
anticipated to be strong for a number of years with Boeing and
Airbus increasing build rates and the Boeing 787 due to be
delivered to customers starting in the third quarter of this year.
Elsewhere across the Group, the outlook appears generally positive
with the regional and business jet manufacturers forecasting build
rates to gradually improve from the current low levels, Senior's
main military platforms expected to remain relatively solid and the
North American truck market showing some signs of recovery. Whilst
the macro economic outlook remains uncertain, the Group's
industrial businesses are well positioned to benefit from growth in
their end markets when this occurs.
Overall, the outlook for Senior remains encouraging for the
remainder of the year and over the long term.
2011 First Half Results
The results for the six-month period to 30 June 2011 will be
announced on Monday 1 August 2011.
Note:
1. Adjusted profit before tax is before loss/profit on sale
of fixed assets, amortisation of intangible assets arising
on acquisitions and acquisition costs.
Further information
Group Chief Executive,
Mark Rollins Senior plc +44 (0) 1923 714 738
Group Finance Director,
Simon Nicholls Senior plc +44 (0) 1923 714 722
James Murgatroyd 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
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