Senior on track despite defence market woes

Aerospace technology manufacturer Senior said it was on track to hit 2012 profit expectations despite a deterioration in some markets.

In the period since the start of July it said cash generation remained strong, with net debt at the end of September of £68m being £25m lower than at the start of the year.

The firm said the large commercial aircraft market, Senior's most important segment, was strong and shipments of industrial expansion joints were at healthy levels.

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It noted Airbus and Boeing had delivered a combined 841 aircraft in the first nine months of 2012, an increase of 16% on the same period last year.

However, the aerospace military and defence, European passenger vehicle and North American truck markets has become more challenging during the period, it said.

The company blamed governmental budgetary constraints for a fall in the level of shipments for some of the group's military and defence programmes, such as the Black Hawk helicopter.

The outlook for other programmes, such as the C130J military transport aircraft, had begun to soften, it added.

"With market conditions largely as anticipated, although increasingly challenging in some areas, the Board continues to expect 2012 adjusted profit before tax to be in line with its previous expectations," the management statement said.

"Assuming no further deterioration in market conditions, the board believes the group is positioned to make further progress in 2013 and beyond."

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