Meggitt PLC Update on Q3 trading and 2019 guidance (0380T)
12 Novembre 2019 - 8:00AM
UK Regulatory
TIDMMGGT
RNS Number : 0380T
Meggitt PLC
12 November 2019
12 November 2019
Meggitt PLC
Update on Q3 trading and 2019 guidance
Meggitt PLC ("Meggitt" or "the Group"), a leading international
company specialising in high performance components and sub-systems
for the aerospace, defence and energy markets, today announces its
third quarter trading update and an upgrade to its revenue guidance
for the year to 31 December 2019.
Trading in the third quarter was stronger than previously
anticipated, with overall organic revenue growth of 11%, driven by
all end market segments and a particularly strong performance in
Defence.
In Civil Aerospace, Original Equipment (OE) revenues grew by 4%
in the third quarter, driven by good growth in regional and
business jets with revenue from large jets slightly ahead of the
comparative period. The Group is maintaining its full year guidance
of 5 to 7% reflecting our expectation of continued growth in
aircraft deliveries to year end.
Civil Aftermarket revenues grew by 4% in the third quarter,
where we delivered good growth in large jets against a backdrop of
lower air traffic growth and ongoing delays in the delivery of
initial provisioning spares for the 737MAX. Growth in large jets
and a good performance in business jets were partially offset by a
softer quarter in regional jets. The Group continues to expect full
year civil aftermarket organic revenue growth of 3 to 5%.
In Defence, revenues grew by 20% in the third quarter, with
strong growth in both OE and the aftermarket reflecting our
significant platform and fleet positions and a continuation of
upgrade and retrofit activity in the US. The Group now expects full
year organic revenue growth of 9 to 11% (up from previous guidance
of 6 to 8%).
In Energy, revenues grew by 26% in the third quarter, driven by
a strong performance in our Heatric business. The project-driven
nature of this division means that performance can be unevenly
distributed across the year. The Group therefore continues to
expect full year organic revenue growth of 0 to 5%.
Strategic initiatives
During the quarter, we continued to see the benefit of our
strategic initiatives including improving operational performance
in Engine Composites, reflecting the investment we have made to
increase capacity and capability in this business.
We have also delivered further savings in purchase costs and
continued to make good progress on consolidating our global
footprint, notably on the construction of our new facility at Ansty
Park, UK where we are on track to commence the progressive
transition of four existing UK sites in 2020.
In our Services and Support division, we further strengthened
our relationships with customers securing a number of new SMART
Support(TM) contracts during the period.
Revenue upgrade and outlook for the full year 2019
As a result of the Group's strong revenue performance in the
quarter, we are upgrading guidance for organic revenue growth for
the Group for the full year to 6 to 7% (up from 4 to 6%
previously).
While we expect good top line growth for the full year, margin
progression will be constrained by mix effects, the grounding of
the 737MAX and, as discussed at the half year, pressures across our
internal and external supply chain driven by the unprecedented ramp
up in new aircraft production. As a result, full year operating
margin is expected to be towards the lower end of our guidance
range of 17.7% to 18.2%.
With exposure to some of the fastest growing platforms and
hardest working fleets across both civil aerospace and defence, and
continued progress on our strategic initiatives, the Group remains
well positioned for the future and we look forward to delivering
another year of profitable growth.
A conference call for analysts and investors will be held at
8.30am this morning. The dial in details are as follows:
Dial-in number: 08003589473
Access code: 24590938#
URL for international dial-in numbers:
http://events.arkadin.com/ev/docs/NE_W2_TF_Events_International_Access_List.pdf
Enquiries:
Louisa Burdett, Chief Financial Officer
Mathew Wootton, Vice President, Strategy & Investor
Relations
Meggitt PLC
Tel: +44 1202 597597
Nick Hasell, Managing Director
Dwight Burden, Managing Director
Alex Le May, Managing Director
FTI Consulting
Tel: +44 203 727 1340
Cautionary Statement
This Results Announcement contains forward looking statements
with respect to the financial condition, results of operations and
businesses of Meggitt PLC and its strategy, plans and objectives.
These statements are made in good faith based on the information
available at the time this announcement was approved. It is
believed that the expectations reflected in these statements are
reasonable but they may be affected by a number of risks and
uncertainties that are inherent in any forward-looking statement
and which could cause actual results to differ materially from
those currently anticipated. Meggitt does not intend to update
these forward-looking statements. Nothing in this document should
be regarded as a profit forecast. This report is intended solely to
provide information to shareholders and neither Meggitt PLC nor its
directors accept liability to any other person, save as would arise
under English law.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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