UK engineer Senior posts loss as pandemic, Boeing's 737 crisis weigh

[LONDON] British engineer Senior Plc shelved its interim dividend on Monday as it swung to a first-half loss, weighed by higher costs and as sales were hammered by coronavirus-led production cuts across the air industry and other manufacturing partners.

The company, which counts planemaker Boeing and heavy equipment maker Caterpillar as some of its biggest customers, has been plagued by back-to-back crises - first, the 737 MAX groundings last year, and then the pandemic-induced slump in global air travel.

Senior has so far laid off employees and furloughed some more to ride out the crisis.

Other Boeing suppliers, including Spirit Aerosystems and France's Safran, have also been hit, while fellow aerospace engineer and GKN-owner Melrose also plans to cut jobs.

"The coronavirus pandemic has had a profound effect on our markets and customers, and we anticipate that the impact will be with us for some time to come," said Senior Chief Executive Officer David Squires.

The company, which supplies parts such as airframes and engine build-up tubes to planemakers, said sales in its aerospace division fell by nearly a third in the six months ended June 30 at constant currency.

The segment is Senior's biggest, accounting for about 73 per cent group revenue in the first half, and consists of 18 operations.

Boeing and Airbus both slashed production of some of their jets, and Caterpillar, considered a bell weather for economic activity, also expects equipment demand to remain weak.

Senior's pretax loss stood at 136.3 million pounds (S$246.37 million), compared with a profit of 26.5 million pounds a year earlier.

REUTERS