Senior PLC Trading Statement (7897C)
April 20 2017 - 2:00AM
UK Regulatory
TIDMSNR
RNS Number : 7897C
Senior PLC
20 April 2017
Trading Update
Ahead of its Annual General Meeting on Friday 21 April, Senior
plc ("Senior" or "the Group"), an international manufacturer of
high technology components and systems, principally for the
worldwide aerospace, defence, land vehicle and energy markets,
issues this trading update for the period since 1 January 2017 (the
"Period").
Trading in the Period has been in line with expectations.
Markets & Divisions
In the Aerospace Division, as anticipated, activity in large
commercial aircraft, the Group's most important market, increased,
offset by the expected decreases in regional, business jets and
military. Production volumes on the newer programmes such as the
A320neo and A350 continue to ramp up, while as predicted, volumes
on mature programmes such as A320ceo, A380 and 777 reduced.
The Flexonics Division benefited from strong industrial
aftermarket demand, however underlying market conditions in truck
and industrial markets remain challenging. Per ACT Research, North
American Class 8 truck production declined 20% in the first quarter
of 2017 compared to first quarter of 2016.
Net debt increased, as expected, to GBP219.7m at the end of
March 2017. This was due to the normal seasonal increase in working
capital and continued planned investment in capital expenditure in
support of organic growth.
Outlook
The Board's expectation for 2017 remains consistent with the
position set out in the announcement of 27 February 2017. Whilst we
expect the first half of the year to be impacted by the transition
from more mature aerospace programmes to the new airframe and
engine products, we anticipate improved Aerospace profit in the
second half of the year, driven by increasing revenues and
operational improvements as we continue our cost reduction focus,
particularly on our newer programmes. In Flexonics, we continue to
believe that late 2017 should be an inflexion point as truck and
off-highway markets recover in 2018 and investment in industrial
projects increases. Current trends still suggest Flexonics
performance to be marginally lower in 2017 compared to 2016.
Looking further ahead, Senior expects to make progress from 2018
onwards as new Aerospace and Flexonics programmes and products
enter production and the benefits of our operational improvement
initiatives and cost saving actions are delivered.
The results for the six-month period to 30 June 2017 will be
announced on Monday 31 July 2017.
Conference Call
There will be a call for investors and analysts at 8.30am BST
today. The dial-in details are as follows:
International access number: +44 (0)20 3003 2666
UK toll free number: 0808 109 0700
Password: Senior
Further information
Group Finance Director, +44 (0) 1923
Derek Harding Senior plc 714 722
Director of Investor
Relations & Corporate
Communications, Senior +44 (0) 1923
Bindi Foyle plc 714 725
+44 (0) 20 7251
Philip Walters Finsbury 3801
About Senior
Senior is an international manufacturing group with operations
in 14 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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