Aerospace supplier reports 25% hit to revenues
Meggitt, the Ansty company specialising in high performance components and sub-systems for the aerospace, defence and energy markets, says its revenue has dropped by a quarter to £384m during its third quarter to September 30.
The firm says that revenue for the year has fallen by 18% so far to £1.3bn, although the it has been boosted by a strong performance in its defence markets, which grew by 9% during the third quarter.
Meggitt says it now expects to make an underlying operating profit of between £180m and £100m this year.
CEO, Tony Wood said: “”While conditions in the global civil aerospace sector remained weak during the third quarter, our top line performance slightly improved, with revenue down 25% in the period, compared with down 30% in the second quarter, reflecting the breadth of our end markets and the continued strong performance of our defence business and growth in energy. Although expectations of the extent of the recovery in civil aerospace in the important final quarter have softened in recent weeks, our global teams continue to focus on actions within our control, including our cost and cash actions where we have made strong progress.”
“For the full year, we expect to deliver underlying operating profit between £180m and £200m, to be free cash flow positive in the second half, and cash flow neutral for the full year at the top end of the operating profit guidance range.
“While we remain alive to the challenges which COVID-19 continues to pose, we are encouraged by recent news on vaccine development and the positive implications for air travel. With diverse end market exposure, strong market positions, and having taken a range of decisive actions, we remain well placed for the recovery.”
