Meggitt PLC Falcon 5X cancellation and launch of successor (3033Z)

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RNS Number : 3033Z

Meggitt PLC

14 December 2017

14 December 2017

Meggitt PLC

Falcon 5X cancellation and launch of successor

Meggitt notes the announcement by Dassault Aviation of the cancellation of the Falcon 5X programme and the launch of a new Falcon programme featuring the same cross section, powered by Pratt & Whitney Canada engines, with an expected entry into service of 2022.

Dassault has indicated that it expects to re-use a maximum of work undertaken to date on the Falcon 5X and that it intends to work with Meggitt on the successor Falcon programme. Meggitt expects to have further discussions with Dassault Aviation in the coming weeks. Additionally, Meggitt has good content on the Pratt & Whitney PW800 engine anticipated to be used in the successor aircraft.

However, it remains possible that the cancellation of the Falcon 5X programme could lead to a non-cash impairment of some or all of the capitalised work undertaken to date. Meggitt currently has GBP50 million of assets relating specifically to the 5X programme, and a further GBP11 million of assets relating to the Silvercrest engine on its balance sheet.

Meggitt will update the market on further developments as required.

Enquiries

Meggitt PLC [phone]

Doug Webb, Chief Financial Officer

Adrian Bunn, Vice President Strategy and Investor Relations

FTI Consulting [phone]

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

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December 14, 2017 02:01 ET (07:01 GMT)