Interim Management Statement

RNS Number : 0864C

Senior PLC

26 April 2012

 



Senior plc

Interim Management Statement

Ahead of its Annual General Meeting on Friday 27 April, Senior plc ("Senior" or "the Group"), an international manufacturer of high technology components and systems, principally for the worldwide aerospace, defence, land vehicle and energy markets, issues this Interim Management Statement for the period since 1 January 2012 (the "period").

Trading and Financial Position

As anticipated, overall trading conditions remained positive in both the Aerospace and Flexonics Divisions during the period, with the Group's adjusted profit before tax⁽¹⁾ slightly ahead of the Board's expectations for the first three months of 2012.  Net debt at the end of March was at a similar level to that at the start of the year.

Markets and Operations

In the Aerospace Division (60% of 2011 Group sales), production of large commercial aircraft, the Group's most important market, increased at the anticipated healthy rate.  Boeing and Airbus delivered a combined 268 aircraft in the first three months of 2012, up 20% on the 223 aircraft delivered in the same period of 2011.  The combined net order in-take for Boeing and Airbus was well ahead of deliveries in the first quarter, with Boeing booking orders for over 300 of their newly launched 737-MAX.  Consequently, their combined order book at the end of March, of 8,441 aircraft, now represents an eight year order book at current build rates, which bodes well for the future.  Elsewhere in the Aerospace Division, build rates for the Group's main defence programmes, such as the Black Hawk helicopter and C-130J military transport aircraft, remained healthy whilst volumes in the regional and business jet markets were largely as anticipated, with Embraer delivering more regional jets than Bombardier.  The two Weston businesses, acquired at the end of November 2011, have been successfully integrated into the Group and made a solid contribution in the first quarter.

The Flexonics Division (40% of 2011 Group sales) performed well in the period.  In land vehicle markets, increased volumes of products for North American heavy trucks and improved manufacturing efficiencies more than offset the effect of a continued softening in demand for non-premium passenger vehicles in Europe and Brazil.  The Group's principal industrial operations performed broadly as anticipated in the first quarter with the solid order book of the Group's key expansion joint business in Texas helping to underpin the anticipated performance of the Division for the remainder of 2012.

The Board

As previously announced, after eleven years on the Board of Senior and five years as its Chairman, Martin Clark is to retire from the Board at the conclusion of tomorrow's Annual General Meeting, with Charles Berry assuming the Chairman role thereafter.  During his tenure as Chairman, Senior has made significant progress and the Board would like to extend its thanks to Martin for his strong leadership and dedicated service on behalf of Senior over the years and to wish him well for the future.

Outlook

Senior has started the year strongly, slightly ahead of expectations, and the outlook for Senior's markets remains consistent with the overall positive view described in its 27 February preliminary results announcement.  Mindful of the continuing macro-economic uncertainty and the potential for future volatility in the Group's land vehicle markets, the Board's expectation for 2012 full year adjusted profit before tax⁽¹⁾ remains unchanged.

Other

The results for the six-month period to 30 June 2012 will be announced on Monday 23 July 2012, slightly earlier than historically.

Note:
1.	Adjusted profit before tax is before loss/profit on sale of fixed assets, acquisition costs and amortisation of intangible assets arising on acquisitions.

Further information

Mark Rollins	Group Chief Executive, Senior plc	[phone]
Simon Nicholls	Group Finance Director, Senior plc	[phone]
Philip Walters	Finsbury Group	[phone]

About Senior

Senior is an international manufacturing group with operations in 12 countries.  It is listed on the main market of the London Stock Exchange (symbol SNR).  Senior designs, manufactures and markets high technology components and systems for the principal original equipment producers in the worldwide aerospace, defence, land-vehicle and energy markets.  Further information on Senior plc, may be found at: www.seniorplc.com

Cautionary Statement

This announcement contains certain forward-looking statements.  Such statements are made by the Directors in good faith based on the information available to them at the time of the announcement and they should be treated with caution due to the inherent uncertainties underlying any such forward-looking information.

 

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