UK engineering group unveils warning from Boeing’s 737 Max grounding
UK engineering group Senior said in its half year report that the grounding of Boeing’s 737 Max planes will hit its margins.
The group, which is one of the largest 250 companies in Britain and makes high-tech components for equipment manufacturers in aerospace and defence, said it will be hit by the prolonged grounding of the air fleet.
“Trading at the Group level in the first half of 2019 has been in line with expectations. Notwithstanding the reported 737 MAX production rate cuts and the ongoing uncertainty around the current geopolitical and macro-economic backdrop, overall the Board expects to meet current expectations for 2019,” said David Squires, Group CEO of Senior.
“Looking ahead, the Group is working to minimise the impact of the risk associated with the challenges described, with a renewed focus on cost and efficiencies. The Group is well-positioned, operating in attractive end markets and is financially robust. The Board remains confident of improving performance and returns for our shareholders.”
Boeing’s (BA) 737 Max fleet of jets was grounded after two fatal crashes involving the types of planes led to the death of 350 people. Recently, Boeing’s programme manager for its 737 Max fleet announced his retirement. The US giant is now trying to get its best-selling 737 Max model back in the air.
Today, Senior posted a 16% drop in pre-tax profit for the six months to June this year. Operating profits were up 3% at constant currency.