INTERVIEW: Senior Expects Flexonics Margin Decline In 2H

2nd Aug 2010 10:34

By Jason Douglas Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Aerospace engineer Senior PLC (SNR.LN) Monday said it expects to maintain improved margins at its aerospace unit but anticipates margins at its Flexonics business will decline in the second half of this year. Senior said its aerospace unit's operating margin improved to 14.9% during the first six months of 2010 compared with 13% a year earlier. Operating margin at Flexonics, which makes parts for cars and trucks, rose to 12.9% from 9.5%. Senior said margins benefited from cost savings like layoffs made in the nine months to June 2009, and higher revenue. Group Chief Executive Mark Rollins told Dow Jones Newswires Senior expects to maintain the higher operating margin at its aerospace business, where accelerating orders for aircraft like Boeing Co.'s (BA) 787 Dreamliner are boosting revenue. Senior makes parts for the aircraft body and nacelles, as well as parts for the plane's Rolls-Royce Group PLC (RR.LN) engines. Rollins said Senior expects operating margin to decline at its Flexonics business during the second half of 2010 although it should remain in double digits. The company anticipates sales of cars and trucks in Europe will be hurt by government austerity measures and the end of incentive schemes designed to encourage consumers to buy new vehicles, Rollins said. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [email protected] (END) Dow Jones Newswires August 02, 2010 05:34 ET (09:34 GMT)