July 10, 2020 / 6:41 AM / a month ago

Aerospace supplier Senior cuts more jobs as production rates tumble

(Reuters) - British engineer Senior Plc (SNR.L) forecast a steep drop in first-half revenue on Friday and laid off another 12% of its staff as it deals with a downturn in the aerospace industry.

The company, which supplies parts to U.S. planemaker Boeing Co (BA.N) among others, said it was expecting a sharp drop in production rates in its civil aerospace unit to continue into the second half of the year and 2021.

“The coronavirus pandemic has had a profound effect on our markets and customers since March and the impact will be with us for some time to come,” Chief Executive Officer David Squires said in a statement.

Senior, which has been struggling with excess capacity ever since Boeing’s 737 MAX crisis, has been restructuring its operations since November last year.

Senior makes parts for original equipment manufacturers (OEMs) in the aerospace, defence, land vehicle and power and energy markets.

It said weakness was seen in most of its markets, except for defence, semi-conductor equipment and medical, which remained “healthy”.

Senior, which expects a 30% fall in first-half revenue, said its net cash inflow was around 3 million pounds ($3.77 million) during the period.

($1 = 0.7948 pounds)

Reporting by Yadarisa Shabong in Bengaluru; Editing by Anil D'Silva

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