UPDATE 1-Senior expects higher demand from Airbus, Boeing in 2014

March 3 (Reuters) - Senior Plc, a maker of aircraft parts and auto components, said it expects higher demand in 2014, as big customers Airbus Group NV and Boeing Co look to ramp-up production.

Airbus, earlier known as EADS, said last month that it intends to increase production of its jetliners - in stride with arch-rival Boeing's plans.

Senior, which makes hydraulic components, seal assemblies and aircraft wall panels, said it expects an increase market share helped by contracts won by its Thailand operations for parts to be used in the Airbus A350 XWB and the Boeing 787.

However, the company, which gets more than half its revenue from the United States, warned that strengthening of the sterling would continue to hurt profit in 2014.

The sterling has gained 1.5 percent against the dollar this year and is expected to rise further as the British manufacturing sector grows at a fast clip.

Shares in Senior fell nearly 4 percent in morning trading on the London Stock Exchange on Monday.

"I think once it (the result) is digested the stock will recover," N+1 Singer Capital Markets analyst Jon Lienard said.

Senior's adjusted pretax profit rose to 98.1 million pounds ($164.4 million) in the year ended Dec. 31 from 91.1 million pounds a year earlier.

Revenue increased 6 percent to 775.1 million pounds. The company said 36 percent of its sales came from large commercial aircraft makers.

Stocks across the industry were down on Monday due to heightened tensions in Ukraine, Lienard said.

The FTSE-250 Midcap Index, of which Senior is a component, was down nearly 2 percent at 16408.62 at 1036 GMT. Airbus shares were down 2.4 percent on the Paris Stock Exchange.

Ukraine has been in political turmoil since last week, when its pro-Russia president was overthrown. Russia has said it would invade the country, despite Western countries threatening to slap sanctions on the world's largest oil producer.

Hertfordshire-based Senior's shares were down 1 percent at 284.6 pence at 1031 GMT. The stock has gained nearly 20 percent in the year up to Friday's close.