UK aerospace firm Senior dives after profit alert on delivery delaysComments Off on UK aerospace firm Senior dives after profit alert on delivery delays
A VOLATILE mix of plane delivery delays and price disputes sent UK aerospace engineer Senior into a tailspin today.
The group issued a shock profit warning due to slower-than-expected sales of planes like the A320neo made by French giant Airbus — Senior is a key supplier — plus other customers baulking at planned price hikes.
Adjusted profit before tax since the start of the year fell 18% to £58.5 million due a slowdown in the third quarter.
With no signs of a pick-up in the final quarter, full-year performance will be worse than the City expects, sending the shares down 20%.
Chief executive David Squires said the group was holding “sensitive” talks with clients about price increases to “get the proper price that we need” but added: “We would never hold a gun to our customer’s head.”
Contractor Keller also issued a profit warning, with earnings set to be 15% below expectations. The shares fell 25%.