U.K. aerospace engineer Senior PLC (SNR.LN) Tuesday said it expects 2010 profit to be at the top end of market expectations following a better-than-expected performance at its Flexonics division during the third quarter.

Senior said Flexonics, which primarily makes parts for cars and trucks and accounted for 41% of first-half sales, benefited from an improvement in demand for heavy trucks in Europe and North America.

Rickmansworth, England-based Senior added production of large commercial aircraft remained healthy during the quarter and construction rates are picking up.

Senior makes parts for the nacelles, body and Rolls-Royce Group PLC (RR.LN) engines for Boeing Co.'s (BA) 787 Dreamliner and parts for aircraft made by Boeing's European rival Airbus, a unit of European Aeronautic Defence & Space Co. EADS N.V. (EAD.FR).

The two companies have received 824 aircraft orders so far this year and delivered 726 to customers during the first nine months.

"This renewed market strength has led Boeing and Airbus to announce future build-rate increases for many of Senior's key aircraft programs," the company said.

Senior added it also benefited from a strong market for military aircraft like United Technologies Corp.'s (UTX) Sikorsky Black Hawk helicopter but said demand for regional jets and large business jets weakened.

Senior said its outlook for the final quarter of the year is solid and it expects 2010 pretax profit, excluding items including acquisition costs and amortization, to be at the top end of expectations of between GBP59.2 million to GBP63 million.

It added its net debt at the end of September was lower than the GBP87.4 million it reported at the end of June as property sales offset the August acquisition of WahlcoMetroFlex Inc., a maker of systems for handling hot gases used in chemical plants and refineries.

Brokerage KBC Peel Hunt, which rates the stock at "buy", said Senior is its preferred aerospace component supplier and maintained its 150 pence price target.

Shares in Senior declined, however, and were down 3.5 pence, or 2.5%, at 137.9 pence at 0949 GMT, underperforming a 0.3% higher Dow Jones U.K. Smaller Companies index.

KBC Peel Hunt analyst Dominic Convey said the stock has had a strong run in recent weeks.

Senior shares have gained 84% since the start of the year and have more than doubled compared to year-ago levels.

-By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; tommy.stubbington@dowjones.com