Meggitt shares waver after as it expects more savings in 2016

 
Jessica Morris
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Meggitt has been hurt by energy industry woes (Source: Getty)

Shares in Meggitt rose this morning, after the aerospace and defence group said that although headwinds it experienced this year will continue into 2016, they will be largely mitigated by cost cutting.

Meggitt, which manufactures parts for aerospace, defence and energy companies, expects organic revenue growth to be in the low- to mid-single digits in civil aerospace, civil aftermarket and military. It also forecast a continued decline in energy, reflecting weakness in the broader energy market.

The company said reported revenue for 2016 is likely to benefit from acquisitions announced earlier this year.

Read more: Meggitt to acquire Piezotech for £26.5m

Meanwhile, trading during October and November will be in line with guidance given in a trading update in October.

In October, Meggitt warned full-year underlying operating profit coming in "meaningfully below" its current estimate of £369m.

Meggitt shares were up by 0.6 per cent at 379.8p per the share at the open.

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