Engineers’ shares take a hit after warnings

ENGINEERING FIRMS Senior and Keller saw their shares hammered after both firms warned over profits.

Senior, which makes components for Airbus and Bombardier planes, saw shares plunge more than a fifth to their lowest level since the end of 2011 at one stage as it posted an 18 per cent drop in profits for the first nine months of its year and warned over the full-year result.

The group said revenues lifted 7 per cent in the first nine months, but this was largely down to the benefit of the weaker pound on its overseas earnings.

Underlying revenues dropped 4 per cent and profits fell to £58.5m for the year-so-far after lowerthan-expected demand from plane manufacturers and trading woes across North America.

It has also been hit by delays in the ramp-up of production for some planes, as well as “certain supplier issues”, which have impacted its US and UK aerospace operations.

Senior, which employs more than 7,400 staff worldwide, warned full-year profits were now set to be lower than forecast in the market, despite an expected pick-up in trading over the final three months of the year.

Fellow FTSE 250-listed engineer Keller saw more than a quarter of its stock market value wiped off after the group said profits would be around 15 per cent below expectations.

The firm, which employs 10,000 staff across more than 40 countries, said the profits blow was driven by “very difficult” market conditions in Asia-Pacific region, leading to further losses in the division over the third quarter. It said: “The recovery in this division is likely to be more gradual and protracted than previously thought.