Meggitt beats forecasts as aerospace boosts earnings

MEGGITT, the British aircraft parts supplier, has reported an impressive increase in profits as a result of the recovery in the global aerospace industry.

The company outdid analysts’ expectations yesterday when it posted a 27 per cent rise in first-half underlying profits, with statutory pre-tax profit surging 69 per cent to £112.2m in the six months to the end of June.

Its key civil aerospace unit, which accounts for 45 per cent of group revenue, saw sales grow 18 per cent to £267.2m as demand for commercial aircraft soared.

The boom in new aircraft construction has made the original equipment the fastest growing part of its civil aerospace business.

However, Meggitt expects sales growth to soften in the coming years as governments cut defence spending. Meggitt’s shares fell 2.7 per cent on the gloomy outlook.