Meggitt PLC Trading Update (4748D)

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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                                                              [phone] 

Doug Webb, Chief Financial Officer

Adrian Bunn, Vice President, Strategy & 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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April 27, 2017 02:01 ET (06:01 GMT)