Meggitt PLC Trading Update (4748D)
April 27 2017 - 1:01AM
UK Regulatory
TIDMMGGT
RNS Number : 4748D
Meggitt PLC
27 April 2017
27 April 2017
Meggitt PLC
Trading update
Meggitt PLC ("Meggitt" or "the Group"), a leading international
company specialising in high performance components and sub-systems
for the aerospace, defence and energy markets, today issues a
trading update.
Trading during the first quarter of 2017 has been in line with
expectations, with reported revenue growth of 9% including the
effects of foreign exchange and the disposal of Meggitt Target
Systems. On an organic basis, revenue declined by 1%, consistent
with our expectation that revenue and earnings will be weighted
towards the second half of the year.
Civil aerospace revenue grew 3% organically. Original equipment
revenues grew 3%, with strong growth in large jets partly offset by
continued softness in business jet and civil rotorcraft. Organic
aftermarket revenues also grew 3%, with good growth in business
jets but lower demand for regional jet spares.
Military revenues declined by 5% organically with the Continuing
Resolution in the US affecting demand in the quarter, despite the
positive outlook for medium-term budget growth. Energy revenues
declined as expected, with a further reduction in Heatric compared
to the first half of 2016.
During the first quarter, Meggitt completed the acquisition of
Miami-based Elite Aerospace, a leader in the test, repair and
overhaul of heat transfer, pneumatic, hydraulic and avionic
components for both commercial and military aircraft. The
acquisition of Elite, which generated revenue of GBP14 million in
2016, will provide increased market access for our Customer
Services & Support (CSS) organisation and broaden the range of
solutions we offer our customers.
Looking forward, the Group continues to expect 2-4% organic
revenue growth for the year, in line with guidance issued with the
2016 full-year results in February.
We continue to make good progress on our key strategic
initiatives and further detail will be provided on these at a
Capital Markets Day on 16 May 2017.
Meggitt's Annual General Meeting will commence today at 11:00
and is being held at the offices of Clifford Chance LLP, 10 Upper
Bank Street, London E14 5JJ.
Enquiries:
Meggitt PLC +44(0) 1202 597597
Doug Webb, Chief Financial Officer
Adrian Bunn, Vice President, Strategy & Investor
Relations
FTI Consulting +44(0) 2037 271340
Deborah Scott, Senior Managing Director
Nick Hasell, Managing Director
Cautionary statement
This trading update, including information included or
incorporated by reference in this trading update, may contain
forward-looking statements concerning Meggitt PLC or its group.
Generally, the words "will", "may", "should", "continue",
"believes", "expects", "intends", "anticipates" or similar
expressions identify forward-looking statements. Such
forward-looking statements involve risks, uncertainties and other
important factors which could cause the actual results, performance
or achievements of the Meggitt group or the market and economies in
which the Meggitt group operates to be materially different from
those expressed or implied by such forward-looking statements. Many
of these risks and uncertainties relate to factors that are beyond
the ability of Meggitt PLC or its directors to control or estimate
precisely, such as future market conditions and the behaviours of
other market participants, and therefore undue reliance should not
be placed on such statements, which speak only as at the date of
this trading update. Neither Meggitt PLC, nor any of its group
undertakings, nor the directors of any of them, assumes any
obligations to, and do not intend to, update these forward-looking
statements, except as required pursuant to applicable law.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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