UK's Senior interim profit rises as Airbus contracts help mitigate Boeing concerns
H1 profit up 10%
Sees mitigating lower Boeing sales in FY
Declares interim dividend of 0.75p
Rewrites with quotes from CEO call on Airbus, analysts comments, shares
By Prerna Bedi
Aug 5 (Reuters) - British engineering firm Senior Plc SNR.L posted a 10% rise in first-half profit on Monday as new and extended contracts with Airbus AIR.PA offset production issues with the Boeing BA.N 737 MAX.
A combination of business with Airbus, Spirit AerosystemsSPR.N, Rolls-RoyceRR.L and other aerospace firms helped Senior in the first half, CEO David Squires told Reuters in an interview.
Aerospace and defence firms have been benefiting from increased demand for airplanes as flying hours reach the pre-pandemic levels, offsetting production caps at Boeing.
"We'll be able to continue to mitigate any issues with lower sales of Boeing with other sales," Squires added while retaining Senior's annual outlook.
"Senior (is) very well-positioned to benefit from a recovery in a number of its key end markets over the next few years," analysts at Jefferies said in a statement.
Under itsFlexonics division, the downstream oil & gas and nuclear businesses helped offset normalising in theupstream unit where customersreduced inventory levels.
The Flexonics unit makes fluid conveyance and thermal management components for vehicles and power and energy applications.
Senior, a supplier to both Boeing and Airbus, reported adjusted operating profit of 25.1 million pounds ($31.9 million), up from 22.9 million pounds last year.
The London-listed firm declared an interim dividend of 0.75 pence apiece, up 25% year-on-year.
Shares in the firm were down 3.3% at 152.4 pence by 0712 GMT, while the midcaps.FTMC index was trading at 3.4% in red.
($1 = 0.7857 pounds)
Reporting by Prerna Bedi in Bengaluru; Editing by Sherry Jacob-Phillips and Sharon Singleton
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
