Higher profit as Boeing, Airbus ramp up build rates

Boeing and Airbus have a backlog of over 8 000 aircraft, enough to keep them busy for the next six years. (Gallo)

Boeing and Airbus have a backlog of over 8 000 aircraft, enough to keep them busy for the next six years. (Gallo)

The company raised its interim dividend 20% to 1.38 pence per share.

"Demand levels in the group's key aerospace markets during the six-month period were slightly ahead of expectation, driven principally by increasing build rates in large commercial aircraft programmes," Senior said.

The company's adjusted pre-tax profit rose to £45.5-million for January-June from £38-million a year earlier.

Revenue rose 20% to £377.2-million. Despite a subdued level of new orders,

Boeing and Airbus have a backlog of over 8 000 aircraft, enough to keep them busy for the next six years.

The onus will be on suppliers like Senior to help plane makers meet the order backlog.

The suppliers' ability to put the necessary processes in place and what plane makers can do to help them were among the main topics of discussion at the Farnborough air show earlier this month.

"The large commercial aerospace industry is anticipated to be strong for a number of years, with Boeing and Airbus increasing build rates, the Boeing 787 scheduled to ramp-up to full production by the end of 2013, and the Airbus A350 due to be delivered to its first customer in mid-2014," Senior said.

Shares of the company, which also counts Rolls-Royce and Bombardier among its customers, closed at 184.5 pence on Friday on the London Stock Exchange. – Reuters

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