Meggitt H1 challenging, sees return to growth

21st Apr 2010 07:01

Aerospace and defence systems group Meggitt said trading since the start of the year has been in line with its expectations of a challenging first half followed by a return to growth in the second half of the year.The group said it remains well placed to take advantage of an upturn in the civil aerospace markets which is anticipated to start benefitting the group in the second half of the year. Commercial aircraft utilisation (measured in available seat kilometres (ASKs)) is showing modest early signs of recovery, which is expected to flow through to increased orders in the next few months. Meggitt's military markets got off to a slow start, mainly due to delays in releasing budget funding, but the group remains confident of making further progress in military revenues in 2010. The Energy business traded in line with expectations. "Our guidance that ASKs, including US domestic travel, will rise by around 1% this year, in our view, remains realistic," chairman Sir Colin Terry will say at the group's AGM later today. "With our large installed fleet, spread across both military and civil platforms, the actions we have taken to reduce costs, our ongoing transformation programme and our sound financial position, the group continues to respond effectively to the current challenges and is well positioned for the future."