Senior Q1 profit marginally beats expectations

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.

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

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
James Ferguson: How bad data is driving fear of a second wave of Covid-19
UK Economy

James Ferguson: How bad data is driving fear of a second wave of Covid-19

Merryn and John talk to MoneyWeek regular James Ferguson about the rise in infections in coronavirus and what the data is really telling us.
17 Sep 2020