Meggitt profit surge fuelled by aerospace

City A.M. Reporter
British aircraft parts supplier Meggitt posted a forecast beating 26 per cent rise in full-year profit, helped by growing demand for commercial aircraft.

The company, which supplies flight displays and wheels to planemakers Airbus and Boeing, reported a 2011 pre-tax profit of £323m on sales 25 per cent higher at £1.45bn.

The FTSE 100 group increased the full-year dividend by 14 per cent to 10.50 pence and said it expects revenues to grow by an average of around 7 percent over the next five years.

Its civil aerospace unit, which accounts for 45 percent of group revenue, grew sales by 16 percent during the year and the company expects this trend to continue in 2012.

Suppliers to the civil aerospace sector have been boosted by order book growth at Airbus and Boeing, who expect combined deliveries for 2012 to be 15 percent ahead of last year.

"With deliveries of large jets by Airbus and Boeing growing ... we are confident in the continued growth outlook for original equipment (in civil aerospace)," the company said in a statement.

"Deliveries are expected to grow strongly in 2012, trending upwards over the medium term."