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Extra restructuring costs to plunge senior deeper into the red
StockMarketWire.com
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Aero-engineer Senior has warned that full-year profits and cash will be hit by a decision to extend restructuring plans as the aerospace and aviation industries remain under enormous pressure from the pandemic.
Savings of circa £35 million this year are still expected but restructuring charges from the creation of a single aerospace division and relocation of some European operations will amount to around £37 million this year.
That will mean worsening cash outflows which are now predicted to be around £20 million in 2020 with another £8 million outlay expected in 2021.
Aerospace sales in the third quarter were 45% lower than the same period last year on a constant currency basis, worsening from the 40% decline in the second quarter and 22% in the first. Demand has been significantly reduced as a result of the ongoing impact of Covid-19 on air travel and Boeing's issues with its 737 MAX plane.
'It is likely to be 2022 before we see a meaningful recovery in group revenues', said CEO David Squires
At 10:12am: (LON:SNR) Senior PLC share price was +0.35p at 55.85p
Story provided by StockMarketWire.com
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