By Tapan Panchal
LONDON--Meggitt PLC (MGGT.LN) on Tuesday reported a 20% fall in
first-half pretax profit due to weaker-than-expected revenue growth
in its military division, and said that it has therefore decided to
revise its full-year guidance for the division.
"Performance in the first-half was mixed, with very strong
orders but weaker-than-expected military revenue," Chief Executive
Stephen Young said.
"Group revenue was lower due to the well-trailed impacts of
currency, disposals and an unusually high second-half weighting
this year, which also impacted our margin," he added.
For the six months ended June 30, the company reported a pretax
profit of 98.2 million pounds ($165.29 million), down from GBP122.4
million in the year ago period, on a revenue of GBP718.9 million
and GBP810.1 million, respectively. Stripping out exceptional items
and tax, profit for the period declined by 21% to GBP143.8
million.
The FTSE100-listed company has declared a 8% increased dividend
for the period of 4.25 pence per share.
The aerospace equipment engineering company said that is
revising its full-year military guidance to a mid-single digit
decline from a low-single digit decline, driven by a reduction in
the higher margin after-market businesses. It expects full-year
total organic revenue growth to be in the low-single digits.
Meggitt separately said that its safety systems division has
been awarded a contract by Boeing Company (BA) to manufacture and
support the fire protection system for the 737 MAX engine and
auxiliary power unit. It didn't disclose any financial details of
the contract.
-Write to Tapan Panchal at tapan.panchal@wsj.com
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