19th Apr 2016 06:36
LONDON (Alliance News) - Aerospace and defence components company Meggitt PLC on Tuesday said trading in the first quarter met its expectations, with solid performance in its civil aerospace and defence arms offset by weakness in its energy unit.
The FTSE 250-listed company said group revenue grew 1.0% in the quarter to the end of March on an organic basis, which strips out the effect of acquisitions and currency movements.
Civil aerospace organic revenue grew 6.0%, helped by 7.0% growth in aftermarket sales, while military revenue increased 1.0%.
Energy revenue, however, declined 15% amid the ongoing pressures on the oil and gas industry.
Meggitt said it made progress on cutting costs in the quarter and is confident it will hit its target of trimming 400 staff by the end of the first half.
Meggitt said its expects low-single-digit organic revenue growth for 2016, though its reported revenue growth will benefit from the strength of the US dollar against sterling.
By Sam Unsted; [email protected]; @SamUAtAlliance
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