Senior Regulatory News (SNR)

24 Apr 2008 07:00

Senior PLC24 April 2008 Senior plc ("Senior" or "the Group"), an international manufacturer of hightechnology components and systems, principally for the aerospace, diesel-engineand energy markets, issues this interim management statement for the three-monthperiod ended 31 March 2008, ahead of its Annual General Meeting to be heldtomorrow, 25 April 2008. Aerospace The wide-bodied commercial aerospace market (43% of aerospace divisional sales)has remained strong with combined deliveries of Boeing and Airbus up 8% to 238aircraft for the first three months of 2008 (221 aircraft for the first threemonths of 2007). Total net order intake for Boeing and Airbus over the sameperiod amounted to 683 aircraft, nearly three times the level of deliveries.Consequently, their combined order book increased to 7,293 aircraft at the endof March 2008 (6,848 aircraft at the end of December 2007). This represents anorder book of over seven years at current build rates. Senior's AerospaceDivision is currently seeing higher than expected volumes on a number ofprogrammes which should offset the effect, during 2008, of lower thananticipated B787 volumes, following Boeing's announcement that delivery of theaircraft will now not commence until Q3 2009. Elsewhere, Bombardier and Embraer reported significantly increased deliveries ofregional jets (a combined 67 aircraft against 41 in Q1 2007) and order intakenearly twice the level of deliveries, therefore increasing their order books.The business jet market also remains very healthy whilst Senior's militaryvolumes were modestly ahead, with the first quarter of 2008 seeing improved USGovernment spares activity. Absolute Manufacturing and Capo Industries, which were acquired by Senior inDecember 2007 and January 2008 respectively, both performed in line withexpectations during the first quarter of 2008. Flexonics The main industrial markets in which Senior operates (oil and gas, powergeneration and chemical processing) were stronger than expected with one of theGroup's US subsidiaries, Senior Flexonics Pathway, being a particularbeneficiary. The financial contribution of the North American heavy-duty diesel-engineproducts continued to improve, as the benefits of the Group's operationalimprovement initiatives were increasingly realised. Development activity remainshigh in emission-related products, for heavy-duty diesel vehicles, in bothEurope and North America. Production of flexible exhaust connectors forcommercial vehicles increased and quotation activity for new programmes washealthy, ahead of the tightening of emission legislation in North America in2010. Overall, volumes in the passenger vehicle market were largely as expected,with the markets outside North America and Europe the healthiest. Board As previously announced, Simon Nicholls will join the Board on 1 May 2008, asGroup Finance Director. Senior plc is also pleased to announce the appointment of Michael Steel as a NonExecutive Director. Michael recently retired from GE Aviation Systems (formerlySmiths Aerospace) where he had worked for 17 years in various senior commercialand operational roles. He will join the Board with effect from 1 May 2008. Michael Steel has not previously acted as a director of a publicly quotedcompany. No further information is required to be disclosed pursuant to ListingRule 9.6.13. Outlook Trading in the Aerospace and Flexonics' Divisions has been strong with theGroup's adjusted profit before tax, for the first three months of 2008,comfortably ahead of the Board's expectations. Following the acquisition of CapoIndustries in January 2008, the Group's net debt at the end of March was, asexpected, around £142m. Boeing and Airbus have record order books and, as a consequence, demand in thewide-bodied commercial aerospace market is expected to remain healthy for theforeseeable future. New programmes, such as the B787 and A380 will provideadditional benefits as their production rates increase over the coming years. Regional and business jet demand is also expected to remain strong and militaryvolumes to continue at satisfactory levels. The North American heavy-duty diesel products continue, as expected, to improvetheir contribution with a number of new opportunities currently being worked onahead of the implementation of tighter emission regulations in 2010. Thepassenger vehicle markets are anticipated to remain competitive. Senior's keyindustrial markets, such as oil and gas, power generation and chemicalprocessing, are buoyant and currently show no signs of slowing down. Consequently, the outlook for the Group remains very encouraging. The results for the six-month period to 30 June 2008 will be announced on Monday4 August 2008. Further information Mark Rollins, Group Chief Executive, Senior plc +44 (0) 1923 714738Adrian Howard, PR advisor, Finsbury Group +44 (0) 20 7251 3801 About Senior Senior is an international manufacturing group with operations in 11 countries.It is listed on the main market of the London Stock Exchange (symbol SNR).Senior designs, manufactures and markets high technology components and systemsfor the principal original equipment producers in the worldwide aerospace,diesel-engine, exhaust system and energy markets. It employs over 5,800 peopleworldwide. Further information on Senior plc, may be found at: www.seniorplc.com Cautionary Statement This announcement contains certain forward-looking statements. Such statementsare made by the Directors in good faith based on the information available tothem at the time of the announcement and they should be treated with caution dueto the inherent uncertainties underlying any such forward-looking information. This information is provided by RNS The company news service from the London Stock Exchange