Meggitt PLC (MGGT) - Interim management statement
RNS Number : 1582Q
02 November 2012
2 November 2012
Interim management statement
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 issues the following Interim Management
Statement. This statement covers the period from 1 July 2012 to 1 November
2012 and constitutes Meggitt's second 2012 Interim Management Statement as
required by the UK Listing Authority's Disclosure and Transparency Rules.
Ongoing strong growth in our energy businesses, driven by excellent levels of
order intake over the last 12 months, more than offset the continued softness
in civil aerospace aftermarket revenues. We are also now starting to see the
anticipated effects of the drawdown from Iraq and Afghanistan impacting our
military revenues. Against this backdrop we were pleased that our third
quarter organic revenues (excluding M&A and at constant currency) were in line
with our exceptionally strong performance in the same period last year.
Civil aerospace end market indicators remain very encouraging, with large jet
original equipment deliveries at record levels, and aircraft utilisation
continuing to increase underpinned by strong load factors across the
industry. These indicators give us confidence in a resumption of aftermarket
growth during 2013.
Following the acquisition of PacSci in April 2011, the Group remains very
confident in delivering the increased cost synergy run rate of $22.5m by the
end of 2014, and savings are occurring at a faster rate than initially
During the third quarter, the Group disposed of an environmental control
systems business in North America which had revenues of c$20m in 2011.
The financial position of the Group remains strong, driven by a good operating
cashflow performance in the first half which has accelerated during the third
We continue to expect revenue growth in 2012 to be circa 10% including the
full year effect of PacSci and the disposal of the environmental control
systems business mentioned above, with operating margins broadly in line with
last year despite the ongoing aftermarket softness and the currency headwind
as a result of the appreciation of the Swiss Franc.
Based on current projections, and notwithstanding the uncertainty in military
end markets, the Group expects to see percentage revenue growth in the mid
single digits in 2013.
Meggitt PLC - +44(0)1202 597597
Richard Cashin, Group Head of Investor Relations
Buchanan Communications - +44(0)20 7466 5000
Charles Ryland, Jeremy Garcia or Louise Hadcocks
This Interim Management Statement, including information included or
incorporated by reference in this Interim Management Statement, 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 Interim Management Statement. 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 company news service from the London Stock Exchange
IMSEAXFFEFPAFFF -0- Nov/02/2012 07:00 GMT
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