Senior Share News (SNR)

A subdued Senior cautioned of slower production rates of new Airbus aeroplanes and but said that this was being offset by an accelerating trucks market and stronger dollar.Overall, the FTSE 250 technology component maker said profits in the first quarter were on target and that expectations for full-year adjusted profit before tax remained unchanged at current exchange rates, "although more second half weighted than historically".Adjusted PBT for the first three months of the year met forecasts despite several short-term challenges being offset by further strengthening of the US dollar against sterling.In the core aerospace division, Boeing and Airbus delivered a healthy 318 aircraft in the period, 5% up on the same period last year.However, as well as the Airbus A350 build rate ramp-up being slower than management expected but management admitted that the decline in the build rate of Airbus's A330 was likely to hit the group sooner than originally anticipated.Furthermore, the cheapness of oil has affected the rate of conversion to natural gas engines in North America, while other negatives included softer agricultural and mining end markets.Offsetting these issues, the US truck market has overtaken the prior year and recent foreign exchange movements have been beneficial, Senior said.Peering further ahead, Boeing and Airbus are scheduled to increase aircraft build rates shortly."Senior's global footprint is providing encouraging opportunities to increase market share and improvements in operational efficiency can be expected as production rates regularise," it added."Accordingly, the group remains well positioned to make further progress in 2016 and beyond."Shares in the company down 5.7% to 323p after an hour's trading.Investec said the larger than normal second-half weighting "increases the risk of further disappointments although the board has not changed its full-year guidance" and downgraded its full year adjusted PBT by £2.2m to £112m in line with Bloomberg's consensus to reflect the lower A350 and A330 build rates and slower mining, oil & gas and agricultural volumes, partially offset by adjusting its USD/GBP assumptions to 1.51.