23rd Apr 2015 06:20
LONDON (Alliance News) - Meggitt PLC Thursday reiterated that it expects its organic revenue to rise by low-to-mid-single digits in 2015, after organic revenue grew 4% in the first quarter, and it's also still expecting to get a revenue boost from the rise in the dollar against sterling as well as from its acquisition of Precision Engine Controls Corp.
In a trading update ahead of the company's annual general meeting, the aerospace engineer said some of the boost from the stronger dollar will be offset by the weakening of the euro against the pound.
It said trading in the first quarter was in line with expectations, with organic revenue, which excludes the impact of exchange rate movements and any acquisitions and disposals, growing at mid-single-digit rates in its civil original equipment and civil aftermarket businesses. It added that stronger-than-expected growth in military revenue was partially offset by a decline in energy.
Meggitt also said it is on track to achieve a net debt to earnings before interest, tax, depreciation and amortisation ratio at or slightly above 1.5 times by the end of 2015. It said the ratio at the end of the first half is likely to exceed this reflecting the seasonality of its cashflow.
Meggitt bought Precision Engine Controls Corp for GBP28.3 million from United Technologies Corp in January, and said it expected the acquisition to immediately boost its earnings. Precision Engine Controls Corp is a supplier of actuation systems and fuel metering valves to manufacturers of small-frame gas turbines used predominantly in the oil and gas and power generation industries.
By Steve McGrath; [email protected]; @stevemcgrath1
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