Senior Plc (LSE:SNR)
Historical Stock Chart
3 Years : From May 2010 to May 2013
U.K. aerospace engineer Senior PLC (SNR.LN) Monday said it expects 2010 profit to beat market forecasts now production rates for major new aircraft like Boeing Co.'s (BA) 787 Dreamliner are beginning to take off.
Boeing and European rival Airbus took 233 orders for new aircraft, net of cancellations, at this year's Farnborough Air Show in England, adding to 268 orders already received in the first half of 2010.
Mark Rollins, Group Chief Executive of Rickmansworth, England-based Senior, told Dow Jones Newswires the market for new planes is picking up as airlines reinvest in their fleets. Senior makes parts for the nacelles, body and Rolls-Royce Group PLC (RR.LN) engines on the Dreamliner, as well as components for military aircraft like United Technologies Corp.'s (UTX) Sikorsky Black Hawk helicopter, which are also in demand.
Senior said increasing revenue at its aerospace unit during the second half will offset weaker trading at its Flexonics business, which primarily makes parts for cars and trucks.
The company, which raised its dividend 11% to 1 pence a share, said it expects 2010 pretax profit, excluding certain items, to be ahead of consensus forecasts of GBP55.6 million.
Brokerage Investec said it expects to raise its 2010 earnings forecasts for Senior by between 10% and 15%, while analysts at brokerage Brewin Dolphin said they expect to raise theirs by 10%.
"The commercial aircraft market is as strong as it has been for some years and gives increasing confidence in the medium-term outlook," said Brewin Dolphin.
At 1418 GMT, shares in Senior were 5.1 pence or 4% higher at 132.6 pence, outperforming a 0.6% higher Dow Jones U.K. Smaller Companies index.
Senior Monday reported a 43% rise in pretax profit to GBP30.2 million for the six months to June 30, compared with a profit of GBP21.1 million a year earlier.
Revenue increased 4.3% to GBP287.7 million, driven by higher income in aerospace and a sharp rebound in demand for cars and trucks. Rollins said sales of cars and trucks were aided by government incentive programs and Senior expects trading at its Flexonics unit to get tougher during the second half.
Net debt decreased by 15% during the first six months of the year to stand at GBP87.4 million at June 30 and Rollins said this provides the company with extra firepower to make acquisitions if needed. Senior is scouting for businesses to buy but no deal is imminent just now, said Rollins.
-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; firstname.lastname@example.org
Order free Annual Report for Senior plc
Visit http://djnweurope.ar.wilink.com/?ticker=GB0007958233 or call +44 (0)208 391 6028