UPDATE: Senior Sees 2010 Profit At Top End Of Expectations
19 Ottobre 2010 - 12:26PM
Dow Jones News
U.K. aerospace engineer Senior PLC (SNR.LN) Tuesday said it
expects 2010 profit to be at the top end of market expectations
following a better-than-expected performance at its Flexonics
division during the third quarter.
Senior said Flexonics, which primarily makes parts for cars and
trucks and accounted for 41% of first-half sales, benefited from an
improvement in demand for heavy trucks in Europe and North
America.
Rickmansworth, England-based Senior added production of large
commercial aircraft remained healthy during the quarter and
construction rates are picking up.
Senior makes parts for the nacelles, body and Rolls-Royce Group
PLC (RR.LN) engines for Boeing Co.'s (BA) 787 Dreamliner and parts
for aircraft made by Boeing's European rival Airbus, a unit of
European Aeronautic Defence & Space Co. EADS N.V. (EAD.FR).
The two companies have received 824 aircraft orders so far this
year and delivered 726 to customers during the first nine
months.
"This renewed market strength has led Boeing and Airbus to
announce future build-rate increases for many of Senior's key
aircraft programs," the company said.
Senior added it also benefited from a strong market for military
aircraft like United Technologies Corp.'s (UTX) Sikorsky Black Hawk
helicopter but said demand for regional jets and large business
jets weakened.
Senior said its outlook for the final quarter of the year is
solid and it expects 2010 pretax profit, excluding items including
acquisition costs and amortization, to be at the top end of
expectations of between GBP59.2 million to GBP63 million.
It added its net debt at the end of September was lower than the
GBP87.4 million it reported at the end of June as property sales
offset the August acquisition of WahlcoMetroFlex Inc., a maker of
systems for handling hot gases used in chemical plants and
refineries.
Brokerage KBC Peel Hunt, which rates the stock at "buy", said
Senior is its preferred aerospace component supplier and maintained
its 150 pence price target.
Shares in Senior declined, however, and were down 3.5 pence, or
2.5%, at 137.9 pence at 0949 GMT, underperforming a 0.3% higher Dow
Jones U.K. Smaller Companies index.
KBC Peel Hunt analyst Dominic Convey said the stock has had a
strong run in recent weeks.
Senior shares have gained 84% since the start of the year and
have more than doubled compared to year-ago levels.
-By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268;
tommy.stubbington@dowjones.com