In a trading update, the FTSE 250 engineer said it was “now evident” that the production rate of the MAX will be below assumptions made in a trading update in November, and that the firm had exposure to the stoppage through several customers.
As a result, Senior predicted revenues for the Aerospace division would fall in the coming year before returning to growth in 2021, with the impact only “partially mitigated” by savings from its ongoing restructuring efforts. Margins for the division are also expected to be lower year-on-year.
Boeing is struggling through a crisis stemming from two crashes of its 737 Max that killed all 346 people aboard the flights. The company this month suspended production of the planes, which regulators grounded in March after the second of the two fatal flights. It is not yet known when or if production of the aircraft will restart.
However, Senior said its full-year results for 2019, due on 2 March, are expected to be in line with expectations with adjusted earnings per share ahead of previous forecasts due to “ one-off benefits from lower central costs and a reduction in the effective tax rate”.
The shares moved 3.1% higher to 172.1p in early trading on Friday.