2nd Jul 2018 08:44
LONDON (Alliance News) - FTSE 250-listed Meggitt PLC on Monday upped its full-year earnings guidance after "stronger than anticipated trading" in the second quarter.
Meggitt makes components and sub-systems for the aerospace, defence, and energy markets.
The company said it now expects total organic revenue for 2018 to increase between 4% and 6%. Previously the company's forecast saw revenue up by between 2% to 4%.
However, the group said it expects margins to be towards the lower end of the guidance range set between 17.7% to 18.0%, due to a "slower than anticipated" recovery at Meggitt Polymers & Composites.
By division, Meggitt expects revenue growth of 4% to 6% in Civil Aftermarket, up from previous guidance of 3% to 5%, due to a combination of "strong growth" in air traffic and low levels of aircraft retirements.
In Military, the group upped revenue growth expectations to 6% to 8%, from 3% to 5%.
In Energy, the company expects revenue growth to exceed 5% for a previous between 0% to 5% forecast.
In a separate announcement of Monday, the company said it reorganised its business to "align its divisions more closely with its customer base and support the company's plans to accelerate organic growth".
The company organised its business in four divisions, Airframe Systems, Engine Systems, Energy & Equipment and Services & Support to replace the current structure of "capability-based business units".
The company will announce its half-year results for the six months to June 30 on August 7.
Meggitt shares were trading up 2.7% at 506.40 pence each early Monday morning.
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