15th Jan 2021 08:08
(Alliance News) - Aerospace and defence firm Meggitt PLC on Friday backed a 2021 recovery for the civil aerospace sector, though added that it will take some time for passenger numbers and aftermarket activity to rebound.
For Covid-19-battered 2020, Meggitt expects revenue to fall by a quarter to GBP1.7 billion from GBP2.28 billion in 2019.
Underlying operating profit is expected to land in the middle of a GBP180 million and GBP200 million range, so less than half the GBP402.8 million from 2019.
The aerospace industry has been hit by air travel restrictions. Carriers suffered but so too did aftermarket service providers such as Meggitt.
Promisingly however for Meggitt, net debt is expected to be below the GBP911.2 million level reported as of the end of 2019.
Meggitt added: "Trading across our end markets in the final quarter was broadly in line with the trends experienced in October, with group performance lower than our September base case, which assumed a progressive improvement in Civil Aerospace in the fourth quarter.
"The recent launch and roll-out of vaccines, coupled with pent-up demand for air travel, provides a supportive backdrop for the recovery in civil aerospace in 2021."
It may take time for the boost from vaccines to drip down to passenger numbers and the aftermarket sector, Meggitt added, due to the "logistical challenges" of rolling out the jabs globally.
"As a result of the work we have done in 2020 to reposition the group and our diverse end market exposure across civil aerospace, defence and energy, we remain well-placed for the recovery," Meggitt said.
Shares in the company were 2.4% higher at 437.80 pence each in early dealings on Friday in London.
By Eric Cunha; [email protected]
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