Meggitt returns to profit despite fall in military orders

AEROPLANE parts supplier Meggitt said in a third quarter update it had returned to sales growth, driven by a strong performance from its civil aerospace arm, and stronger order volumes.

Meggitt, which supplies products such as flight displays and wheels to aircraft manufacturers such as Airbus and Boeing said revenues grew one per cent year-on-year in the third quarter after having fallen 10 per cent in the first quarter and two per cent in the second quarter.

It said civil aviation equipment, maintenance and energy revenues grew in the quarter driven by a 17 per cent increase in order intake on last year but that military revenues were down.

Order intake for the last nine months was seven per cent ahead of the same period last year. Civil aviation orders were up more than 25 per cent but military orders were down eight per cent as a result of multi-year orders received last year.

“Revenues grew, continuing an improving trend and, together with the healthy order intake, gives us confidence that we will see further revenue growth in the fourth quarter and modest growth for the year,” the company said in a statement.