Aerospace engineer Senior warns of hit from 737 MAX production cuts
April 25 (Reuters) - Aerospace engineer Senior Plc SNR.L on Thursday warned that Boeing Co's BA.N production cuts following the global grounding of its 737 MAX planes will hit margins.
Senior said a part of its structures business in Seattle, Washington, will be hurt after the U.S. plane maker cut its production rate to 42 from 57, as costs related to the ramp up and other production were unlikely to be offset.
Senior makes a wide variety of components used in jets and counts Boeing as one of its top customers. Significantly more work on new airline programmes such as the 777X, 737 MAX and A320NEO, had boosted Senior's revenue and profit last year.
The company, however, forecast only a modest reduction to its expectations as it actively works to cut down costs.
Boeing, the world's largest planemaker, is facing one of its biggest crises following the fatal crashes of 737 MAX planes flown by Lion Air in Indonesia and Ethiopian Airlines.
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Bernard Orr)
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