Meggitt, which specialises in high performance components and sub-systems for the aerospace, defence and energy markets, has reported strong trading during the first quarter of 2018, with organic revenue growth of 6% excluding the effects of foreign exchange and disposals. This reflects a robust performance in the civil aftermarket and energy end markets.
Civil aerospace revenue grew 4% organically, says the trading update. Original equipment revenue declined by 2%, with good growth in business jets more than offset by continued weakness in regional jets and reduced revenue on large jet platforms, which reflects lower demand for our composite radomes that grew strongly throughout 2017. Aftermarket revenue grew by 8%, with good performance in large jets (737NG, A380) and modest growth in regional jets offset by softness in business jets, which had a strong comparator.
Military revenue increased by 2% organically, with strong growth on fighter jet platforms (most notably F/A-18 and F-35). Energy revenues grew by 39% organically, reflecting a weak comparator and the ongoing conversion of the 13% organic order book growth reported for 2017.
Meggitt states that, following the challenges faced by the company during the six months to December 2017, it has “made good progress” on its recovery plan and states that it is “encouraged by the initial operational improvements”.
The Group has continued to accelerate progress on its key strategic priorities. In the first quarter, the Group has completed three further non-core disposals and advanced its factory rationalisation programme, with planning permission granted in March for the proposed UK super site at Ansty Park.
Following first quarter trading, the Group reaffirms its guidance of 2-4% organic revenue growth for the year.