Meggitt says Q1 in line with expectations as revenue up 9%

Aerospace components maker Meggitt said first quarter training had been in line with expectations, with reported revenue growth of 9% including the effects of foreign exchange and the disposal of the company's Target Systems unit.

On an organic basis, revenue declined by 1%, consistent with the company's expectation that revenue and earnings will be weighted towards the second half of the year.

Meggitt said it still expected 2%-4% organic revenue growth for the year.

It added that civil aerospace revenue grew 3% organically, original equipment revenues were up 3%, with strong growth in large jets partly offset by continued softness in business jet and civil rotorcraft.

Organic aftermarket revenues also grew 3%, with good growth in business jets but lower demand for regional jet spares.

Military revenues fell 5% organically with the continuing resolution in the US (the mechanism which funds defence) affecting demand in the quarter, “despite the positive outlook for medium-term budget growth”.

“Energy revenues declined as expected, with a further reduction in Heatric compared to the first half of 2016,” Meggitt said.