Engineering firm Senior has become the latest company to warn that margins in its operations will take a hit following the crisis surrounding the grounding of Boeing 737 Max aircraft around the world.
Senior, which makes components for commercial and military jets, is impacted by Boeing's decision to cut its monthly production of 737 Max jets from 52 to 42, following March's Ethiopian Airlines crash.
“This is one business in particular that is unlikely to be able to fully mitigate this impact of a cut to rate 42 instead of gearing up for an increase to rate 57,” Senior said in a statement.
Boeing has seen the grounding of its 737 Max aircraft impact its business with the company posting its revenue was down by $1 billion in the first quarter of 2019. Boeing has not disclosed how long its anticipates operating at a reduced schedule.
