Meggitt says FY revenue to fall on supply chain issues, weaker defence mkt

Aerospace engineer Meggitt said annual revenues would fall by 5% due to supply chain issues and a weaker defence market.

The company on Thursday said it expected to deliver full-year underlying operating profit of £170m - £190m and positive cash flow.

“While we are pleased to see signs of the civil recovery across our business, the supply chain disruption and the softer defence trends we have experienced in the third quarter are expected to continue throughout our historically strongest, fourth quarter,” the company said in a trading update.

Revenue for the three months to September 30 grew 5% year-on-year and 4% sequentially.

Civil aerospace revenue grew by 29% in the period, but defence revenue fell 12% lower, reflecting a reduction in orders from the US Defense Logistics Agency and longer lead times in the supply chain.