Senior Q1 profit marginally beats expectations

25th Apr 2013 09:05

Aerospace engineer Senior said Thursday that since the start of the year trading has been positive in both the Aerospace and Flexonics divisions, with adjusted profit before tax for the first quarter coming in 'marginally' ahead of the board's expectations. However, net debt increased to £93m as a result of currency movements and the expected effect of increased activity. "Senior has started the year marginally ahead of expectations and the outlook for Senior's markets remains broadly consistent with the overall positive view described in its February 25th preliminary results announcement," the company said. "Consequently, having taken into consideration the continuing macro-economic uncertainty in a number of the group's operating countries and the potential for future volatility in the group's land vehicle markets and exchange rates, the board's expectation for 2013 full year adjusted profit before tax remains unchanged." Divisionally, Aerospace, which accounts for 66% of group sales, increased at an anticipated 'healthy' rate. Boeing and Airbus delivered a combined 281 aircraft in the first three months of 2013, ahead of the 268 aircraft delivered in the same period of 2012, despite Boeing delivering only one B787 aircraft in the period due to its temporary grounding. Build rates for its main defence programmes declined largely as anticipated, whilst overall volumes in the regional and business jet markets were relatively stable.The Flexonics division performed well, with the effect of a continued softening in demand for passenger vehicles in Europe offset by healthy volumes of Senior's products for North American heavy trucks and improved manufacturing efficiencies. The group said overall its principal industrial operations performed broadly as anticipated in the first quarter, with sales of large expansion joints and fuel cell products ahead of expectation but its business in Brazil was affected by delays in order-placement. NR