logo-loader

Meggitt sounds upbeat note despite aerospace industry woe

Published: 07:45 07 Dec 2015 GMT

StormShadow_takeoff_Warton1-001
Meggitt expects full-year revenue to rise in the low- to mid-single digits

Aerospace and defence group Meggitt (LON:MGGT) gave an upbeat view of its medium-term prospects despite turmoil in the industry.

Meggitt said it was well-placed to increase organic revenue ahead of the markets in which it operates, replacing previous revenue guidance.

It said it expected full-year revenue to rise in the low- to mid-single digits in civil equipment sales, spares and maintenance and defence, and a continued decline in energy.

"These will aggregate to a group organic growth rate in low-single-digits, with reported revenue growth benefitting from the effect of the acquisitions announced earlier this year," Meggitt said in a trading update.

It also said previously announced cost cuts would broadly offset negative factors in the second half of 2015, which it expects to continue into 2016.

In October, Meggitt reported worse-than-expected third quarter trading due to issues that have also affected jet engine maker Rolls-Royce (LON:RR.).

Meggitt said weaker-than-expected trading in civil aerospace spares and maintenance business had more than offset increases in sales of new equipment.

Declines in the energy market, which has suffered as oil prices sparked cuts in investment and jobs in the oil and gas industry, have also hit the company.

At the time, Meggitt, which makes aircraft under-carriages, warned on annual profits and said it was considering shedding 300 jobs.

Chesnara reports strong 2023 results with improved cash generation and...

Chesnara PLC (LSE:CSN) chief executive Steve Murray discusses the company's full-year results for 2023 with Proactive's Stephen Gunnion, describing them as strong and particularly highlighting £53 million in commercial cash generation and a dividend coverage of around 150%. The company has...

48 minutes ago