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Meggit enjoys robust demand in first quarter
(WebFG News) - Industrial component maker Meggitt grew organic revenue 6% in the first quarter thanks to a "robust" demand from civil aerospace aftermarket and energy end-markets.
Following first quarter trading, the FTSE 250 group reaffirmed its guidance of 2-4% organic revenue growth for the full year.
Civil aerospace revenue was up 4% excluding the effects of foreign exchange and disposals, as original equipment revenue declined 2% due to reduced revenue on large jet platforms and continued weakness in regional jets.
Aftermarket revenue grew 8% amid strength in large jets programmes such as the Boeing 737 Next Generation and Airbus A380 and modest growth in regional jets. There was some softness in business jets compared to a strong quarter last year.
Military revenue increased 2%, with strong growth on fighter jets such as the F/A-18 and F-35 after order intake in the fourth quarter of last year provided "good momentum" for military revenue in the Polymers & Composites (MPC) and Control Systems units but continued delays on fighter jet and transport aircraft brakes were a challenge for the MABS aircraft braking arm in the quarter. There was "good progress" reported on the recovery and initial operational improvements at MPC after the challenges in the second half of last year.
Energy revenues grew 39% against a weak quarter last year and processing of 2017's expanded order book, with "substantial growth" from the Heatric head-exchange unit due to increasing expenditure in the oil and gas sector and the timing of contract deliveries. The sensing and controls businesses were also on the up thanks to their exposure to industrial gas turbines.
Three non-core disposals were completed during the quarter, with planning permission granted for the proposed UK 'super site' at Ansty Park as part of the factory 'rationalisation' programme.