Flat structures and lean principles contribute to successful Senior moment
1 min read
Senior plc, the British-based international aerospace and automotive sector manufacturing group announced today (2 August) that it now expects its 2010 profits to be comfortably ahead of market expectations of around £55.6m, adding that a flat organisational structure and lean manufacturing principles were contributing to its success.
Senior – which has operations in 11 countries and designs and manufactures high technology components and systems for the big original equipment manufacturers (OEMs) in the worldwide aerospace, defence, land vehicle and energy markets – is largely dependent on market drivers like the build rates of commercial aircraft, the US military aerospace programme, car sales in North America, Europe and Brazil, heavy duty truck sales in North America and capital project spending in the global petrochemical, power generation and renewable energy industries.
In these respects, Senior said its longer-term outlook remained encouraging. In aerospace, Boeing and Airbus were increasing their aircraft build rates with the Boeing 787, an important programme for Senior, expected to be delivered to customers starting in early 2011; and a range of other new platforms, such as Lockheed Martin's Joint Strike Fighter (pictured) and Bombardier's CSeries, were scheduled to go into production over the coming years.
Meanwhile, the company's Flexonics division was expected to benefit from a recovery in demand, from the current low levels, for heavy duty trucks in North America and from the opportunities arising from tightening emissions legislation and the growth in renewable energy markets. Many of Senior's products are used to satisfy the growing need for emission control and environmental solutions in the Group's principal end markets.
Commenting on half year results, that saw revenues rise 4% to £287.7m and pre-tax profits 43% up at £30.2m, chairman Martin Clark said the benefits of increased volumes, combined with the effects of cost reduction measures and an improved product mix, had enabled Senior to deliver the improvements.
Senior is an organisation that boasts an organisational structure that has only one layer of management between the Group CEO and local operational management and a culture based around empowerment of its autonomous operations, including a strong commitment to Lean manufacturing principles. Its major customers include Boeing, Airbus, Rolls-Royce, Bombardier, Goodrich, GKN, Cummins, Ford and GM.
