31st Oct 2008 07:00
Immediate Release
31 October 2008
Meggitt PLC ("Meggitt" or "the Group")
Interim Management Statement
Meggitt PLC, a leading international company employing over 8,000 people specialising in aerospace equipment, sensing and defence systems, today issues the following Interim Management Statement.
This statement covers the period from 1 July 2008 to 31 October 2008 and constitutes Meggitt's second 2008 Interim Management Statement as required by the UK Listing Authority's Disclosure and Transparency Rules.
Meggitt continues to make good progress in 2008 and has seen little impact so far from the anticipated slow down in civil aerospace. The order books for new aircraft continue to grow and delivery schedules of original equipment remain strong, although deliveries to Boeing slowed due to industrial action by Boeing machinists.
Civil passenger fleet utilisation, measured in Available Seat Kilometres, continues to grow although the rate of growth has slowed. Announced capacity reductions to date in the civil fleet would potentially affect Meggitt's sales of spares and repairs by around £15m per annum from the fourth quarter of 2008, representing less than 2% of total Group sales.
During the period, the Group announced further significant civil aerospace contract wins, which over the life of the programmes will equate to hundreds of millions of dollars of new revenue. These wins include braking systems for the Gulfstream G250, Embraer Legacy 450 and 500 and Hawker Beechcraft Premier II aircraft, pneumatic bleed air system for the Embraer Legacy 450 and 500 programmes and providing the Advanced Airborne Vibration Monitor on all new Boeing 737 Next-Generation aircraft.
Meggitt's military business continues to trade in line with expectations, on the back of excellent multi-year orders received in 2007. As anticipated, the Group's Defence Systems business returned to growth in the third quarter.
Several military contracts were received during the period, including the first $29.5m increment of a $64.8m multi-year contract for M1A2SEP Abrams thermal management systems and another 80 automatic 105 mm ammunition replenisher systems for the Stryker Mobile Gun System, valued at $11.5 million. Both contracts were from General Dynamics.
K&F continues to perform very well, with increased synergies of £22m per annum expected by 2010.
The financial position of the Group is strong and is substantially unchanged since the Interim results announced on 5 August. Meggitt has recently renegotiated the terms of a $500m bank facility, extending the maturity from May 2010 to May 2013, following which no new financing will be required before March 2012. The profit impact of the reduction in the civil fleet and of the Boeing strike will be largely mitigated by the recent strengthening of the US dollar.
The Board is confident of delivering further growth in the second half of 2008 and reiterates that Meggitt remains on track to deliver full year results in line with its expectations.
For further information, please contact:
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Meggitt PLC
Terry Twigger, Chief Executive
Stephen Young, Group Finance Director
Andy Mann, Investor Relations
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Tel: 01202 597597
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Buchanan Communications
Charles Ryland / Jeremy Garcia / Jennie Spivey
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Tel: 020 7466 5000
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