26th Apr 2018 09:26
LONDON (Alliance News) - Meggitt PLC had a strong first quarter, the company said on Thursday, with a "robust" performance in the civil aftermarket and energy end markets.
Meggitt, which makes components and systems for the aerospace, defence, and energy industries, posted organic revenue of 6% for the first three months of 2018, excluding foreign exchange and disposals.
In its Civil Aerospace arm, revenue grew 4% organically. Regional jets weakness and reduced large jet revenue offset business jets growth leading to a decline in original equipment revenue of 2%.
Aftermarket revenue rose by 8% with good performance in large jets and modest growth in regional jets, which made up for softness in business jet trading, which Meggitt said also had a strong comparative period a year ago.
In Military, Meggitt's revenue increased 2% on an organic basis, with the firm reporting strong growth on fighter jet platforms.
Order intake from the fourth quarter of last year has provided momentum for polymers & composites as well as control systems, though delayed fighter jet and transport aircraft brakes has hit its aircraft braking systems business.
Regarding the recovery plan for polymers & composites, Meggitt said it was making good progress and is "encouraged" by initial operational improvements.
Meggitt Energy revenue climbed 39% organically, which it said was due to a weak comparator and the conversion of a strong organic order book.
Following on from this quarter, Meggitt has reaffirmed its guidance for 2% to 4% organic revenue growth in 2018 as a whole.
Shares were up 2.0% on Thursday at a price of 469.45 pence each.
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