Meggitt PLC Q3 trading update and upgrade to revenue guidance (1146E)
October 16 2018 - 2:00AM
UK Regulatory
TIDMMGGT
RNS Number : 1146E
Meggitt PLC
16 October 2018
16 October 2018
Meggitt PLC
This announcement contains inside information. The person
responsible for arranging the release of this announcement on
behalf of Meggitt is Marina Thomas, Company Secretary.
Q3 trading update and upgrade to 2018 revenue 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 2018.
Trading in the third quarter has been stronger than previously
anticipated, with overall organic revenue growth of 6% driven by
continued strong performance across the Group's Civil Aerospace and
Defence market segments. As a result of the improving end market
conditions, the Group now expects total organic revenue growth in
2018 of 7 to 8% (up from 4 to 6%).
In Civil Aerospace, Original Equipment ('OE') revenues grew by
5% in the third quarter, as a result of growing demand for business
jets and the new large jets where we have excellent content across
engines and airframes. The Group now anticipates full year organic
revenue growth of 6 to 8% in Civil OE (up from previous guidance of
2 to 4%), reflecting expectations of continued growth in deliveries
of new aircraft.
Civil Aftermarket revenues grew by 9% in the third quarter as a
result of further growth in air traffic and low levels of aircraft
retirements which have increased demand for our spare parts. The
Group now anticipates full year organic revenue growth of 7 to 9%
in civil aftermarket (up from previous guidance of 4 to 6%).
In Defence, strong growth on new platforms together with
continued demand for retrofit fuel tanks contributed to growth of
8% in the third quarter. As a result of the continued positive
outlook for defence spending in the US, following the agreement of
the FY19 Defense Budget in September, the Group now anticipates
full year organic revenue growth of 7 to 9% (up from previous
guidance of 6 to 8%).
In Energy, organic revenue declined by 9% in the third quarter,
with declining revenue in power generation OE and declining revenue
at Heatric compared to a relatively strong prior year period. This
was partially offset by further growth serving end-users of
industrial gas turbines. The Group continues to anticipate full
year organic revenue growth in excess of 5% in its energy
markets.
Guidance for operating margins remains unchanged and is expected
to be towards the lower end of the range of 17.7% to 18.0%.
2018 organic revenue Q1 Q2 Q3 YTD
growth
Civil OE (2%) 9% 5% 4%
----- ---- ----- ----
Civil aftermarket 8% 14% 9% 10%
----- ---- ----- ----
Defence 1% 14% 8% 8%
----- ---- ----- ----
Energy 39% 24% (9%) 17%
----- ---- ----- ----
Group 5% 13% 6% 8%
----- ---- ----- ----
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: 96870131#
URL for international dial-in numbers:
http://events.arkadin.com/ev/docs/NE_W2_TF_Events_International_Access_List.pdf
Enquiries
Meggitt PLC +44 (0)1202 597 597
Doug Webb, Chief Financial Officer
Adrian Bunn, Vice President Strategy and Investor Relations
FTI Consulting +44 (0)20 3727 1000
Deborah Scott, Senior Managing Director
Nick Hasell, Managing Director
Cautionary statement
This trading update, including information included or
incorporated by reference in this trading update, may contain
forward-looking statements concerning Meggitt PLC or its group.
Generally, the words "will", "may", "should", "continue",
"believes", "expects", "intends", "anticipates" or similar
expressions identify forward-looking statements. Such
forward-looking statements involve risks, uncertainties and other
important factors which could cause the actual results, performance
or achievements of the Meggitt group or the market and economies in
which the Meggitt group operates to be materially different from
those expressed or implied by such forward-looking statements. Many
of these risks and uncertainties relate to factors that are beyond
the ability of Meggitt PLC or its directors to control or estimate
precisely, such as future market conditions and the behaviours of
other market participants, and therefore undue reliance should not
be placed on such statements, which speak only as at the date of
this trading update. Neither Meggitt PLC, nor any of its group
undertakings, nor the directors of any of them, assumes any
obligations to, and do not intend to, update these forward-looking
statements, except as required pursuant to applicable 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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