UK engineer Senior lifts forecast on recovery in aerospace, oil & gas
(Reuters) – British jet and auto parts supplier Senior Plc on Friday forecast 2021 performance to be slightly ahead of its previous expectations, encouraged by “clear signs of recovery” in the aerospace and the oil and gas sectors.
The engineering firm, which supplies equipment to planemakers including Boeing, Airbus and heavy equipment maker Caterpillar, said trading in six months to June had been ahead of management expectations and sales were likely to fall 13%.
While the aerospace industry is still reeling from a pandemic hit, Senior pointed to updates from Airbus and Boeing in recent weeks, saying some production rates picking up towards the end of this year and into 2022 support its outlook raise.
Parts suppliers such as Senior are facing a turbulent time, with production cuts from automakers due to chip shortages adding to woes of a demand slump from planemakers. The industry had already weathered Boeing‘s 737 MAX crisis reut.rs/2Vep6kV since 2019.
London-listed Senior also said on Friday it ended the period with a net cash inflow of 61 million pounds ($84 million), while net debt was expected to be around 71 million pounds.
In the past weeks, the company has managed to fend off a $1.2 billion takeover bid from private equity firm Lone Star Global.
($1 = 0.7261 pounds)
Reporting by Yadarisa Shabong and Pushkala Aripaka in Bengaluru; Editing by Rashmi Aich