LONDON Aug 6 British aircraft parts supplier
Meggitt posted a forecast beating 7 percent rise in
first half profit, underpinned by the ramp-up of civil aerospace
programmes and a recovery in aftermarket sales.
The FTSE-100 firm, which supplies flight displays and wheels
to Airbus and Boeing, on Tuesday reported a
pretax profit of 182 million pounds ($279 million) in the six
months to the end of June, ahead of the average analyst forecast
of 173 million pounds, according to Thomson Reuters data.
The company, which raised its interim dividend by 10 percent
to 3.95 pence, said revenues grew 4 percent to 810 million
Its civil aerospace business delivered a 15 percent rise in
revenues during the period as as rival planemakers Airbus and
Boeing ramped-up production to record levels.
Global airlines will buy $3.5 trillion of aircraft over the
next 20 years to meet demand for travel to and from emerging
markets and renew ageing fleets with more fuel-efficient planes,
according to the world's two biggest planemakers, helping
suppliers such as Meggitt.
"Deliveries of large jets by Airbus and Boeing are
underpinned by a firm order backlog stretching out for a number
of years, which gives us confidence in the continued growth
outlook for (civil aero) equipment," said chief excecutive
"Deliveries are expected to continue to grow strongly for
the remainder of 2013 and 2014, trending upwards over the medium
Meggitt, which also announced new contract wins on Sikorsky
helicopters and Irkut jets, said it expects to make further good
progress in 2013, delivering mid-single-digit revenue growth.
Revenues at its military unit were down 1 percent due to the
impact of defence spending cuts, especially in the U.S.
Rival plane parts maker GKN last week posted a
better-than-expected 5 percent rise in first-half profit, led by
a strong performance from the group's expanding aerospace
Shares in Meggitt, which have risen 17 percent so far this
year, closed at 554.5 pence on Monday, valuing the group at
around 4.4 billion pounds.