Trading Statement

RNS Number : 3020O

Senior PLC

28 June 2010

 



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 2010.

Trading

The Group has traded strongly, with profitability for the first half of 2010 anticipated to be in line with the Board's expectations at the time of the IMS on 21 April 2010 and, consequently, to be significantly ahead of the performance achieved in the first half of 2009.  Cash generation has been healthy with net debt expected to have reduced, from the £102.3m reported at the end of 2009, despite the adverse effect the stronger US$ has had on the Group's reported net debt level.

Markets and Operations

2010 has seen generally positive news for the large commercial aircraft market.  In the first five months of the year, Boeing and Airbus reported a much improved combined net order in-take of 184 aircraft (2009: 21 aircraft).  At the Berlin Airshow in early June, Airbus also announced commitments for an additional 67 aircraft.  In the same five-month period Boeing and Airbus delivered 385 aircraft (2009: 406).  The improved outlook has led both Boeing and Airbus to announce increases in aircraft build rates for future years.  Importantly for Senior, Boeing's 787 flight test programme remains on schedule, with more than 1,000 flying hours now recorded and the first GE powered aircraft joining the existing four Rolls-Royce powered aircraft in the test programme.  Elsewhere in the Aerospace Division, end markets broadly followed the previously reported trends with the Group's main military and defence programmes growing steadily, sales to the business jet market stabilising and those to the regional jet market weakening.

Conditions in the end markets serviced by the Flexonics Division were largely as anticipated, but excellent operational execution and a favourable product mix mean first half margins are now likely to be at the higher end of expectations.  Overall, passenger vehicle markets remained at satisfactory levels whilst the Group's sales to the North American heavy truck market were weaker, as expected, following the surge in demand experienced in the final quarter of last year driven by the introduction of tighter emission legislation.  Industrial markets were mixed, with some markets, such as Germany, seeing some recovery but the global industrial expansion joint market easing, as anticipated, towards the end of the period.

Outlook

The outlook for the large commercial aircraft market, the most important market for Senior, remains positive with increases in aircraft build rates for future years recently announced and Boeing confident that customer deliveries of their 787 aircraft will commence towards the end of 2010.  Senior continues to gain market share in a number of its markets, through excellent operational performance and financial strength, with new and existing customers both offering healthy growth opportunities.  Tightening emission legislation and growth in renewable energy markets can also be expected to provide healthy longer term opportunities for the Group.  Consequently, Senior's future prospects remain encouraging.

The results for the six-month period to 30 June 2010 will be announced on Monday 2 August 2010.

Further information

Mark Rollins	Group Chief Executive, Senior plc	[phone]
Simon Nicholls	Group Finance Director, Senior plc	[phone]
Clare Hunt	Finsbury Group	[phone]

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.

 

END

 

 

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