Meggitt Falls as Outlook Hit by Defense Slowdown, Supplier SnagsChristopher Jasper
Meggitt Plc fell the most in nine months as the U.K. supplier of plane wheels and brakes reported a drop in first-half earnings and trimmed its full-year outlook amid a decline in military sales and issues with a supplier.
Shares of Meggitt slumped as much as 9 percent, the sharpest intraday decline since Nov. 1, and were trading 7 percent lower at 468.50 pence as of 8:39 a.m. in London, taking their slide this year to almost 12 percent.
Meggitt’s pretax profit fell 21 percent to 143.8 million pounds ($242 million) in the six months as sales tumbled 11 percent, with both measures down even excluding the impact of currency fluctuations. Revenue of as much as 30 million pounds has been deferred until next year after a supplier in Brazil filed for insolvency, the Bournemouth-based company said.
“Order growth in the civil business in particular gives us confidence in the second half,” Chief Executive Officer Stephen Young said in an interview. The company now predicts full-year “organic” sales growth in low single digits, down from the mid-single-digit gains forecast previously.