Meggitt's revenue growth to be minimal in 2016

7th Dec 2015 07:05

(ShareCast News) - FTSE 100 engineering company Meggitt has revealed it expects full year 2016 organic growth to be in the "low-single-digits", continuing on from this year's second half weakness.The company said updated the market on the short and medium term trends, as well as providing guidance for the 2016 financial year.It noted that next year there will be low-to-mid single digit revenue growth in civil OE, civil aftermarket and military.There is also expected to a decline in energy, reflecting weakness in the broader energy market."These will aggregate to a group organic growth rate in low-single-digits," the company said, "with reported revenue growth benefitting from the effect of the acquisitions announced earlier this year."The news comes after the company warned in October that full year profits will be well below forecasts after the aerospace and industrial components supplier endured softer trading in the third quarter.Trading in the months since that update has been consistent with that guidance and it warned that the negative mix effects in the second half of 2015 will continue into the following year.However the company believed it will be broadly offset by previously announced cost reduction activities.