Meggitt cautious over markets direction

4th Aug 2009 11:25

Aerospace and defence systems group Meggitt has upped its savings target for 2009 from £20m to £25m, with its markets still uncertain overall.Underlying profits in the six months to June rose by 2% to £122.3m. Revenues rose by 11% to £586m. Stated pre-tax profit rose by 32% to £100.1m. The dividend is unchanged at 2.7p.Deliveries and utilisation of Meggitt-equipped aircraft broadly in line with the group's expectations - some impact in first half through destocking and rescheduling of deliveries within civil aerospace. Savings of £10m were achieved in first half, it said. "The outlook remains uncertain but military revenues remain robust and industry data concerning the delivery of new civil aircraft and utilisation of existing aircraft suggest that underlying demand for our products will continue in line with the group's expectations. Although the impact of destocking looks to be slightly higher than we had anticipated, the impact on 2009 profit will be substantially mitigated through additional cost savings," chief executive Terry Twigger added.