MEGGITT BUOYED BY IMPROVING CONDITIONS

Meggitt has been buoyed by strengthening market conditions during its first quarter, although it noted that the recovery in civil aerospace “continues to be uneven”. The group added that its proposed £6.3bn takeover by Parker-Hannifin Corporation is still expected to complete later this year.

Group civil order intake during the quarter was up 116 per cent, reflecting the civil recovery and a weak comparator in Q1 2021.

Original equipment was up 54 per cent and aftermarket 176 per cent, including a “strong performance” from braking systems across large, regional and business jets.

Overall, group revenue was up 5 per cent on an organic basis against the comparative period in 2021. Civil aerospace and energy turnover increased by 25 per cent and 27 per cent respectively, with defence dipping by 16 per cent.

Meggitt said: “We are pleased with the strengthening of conditions in the quarter.

“However, the recovery in civil aerospace continues to be uneven, demonstrated by the lingering effects of the pandemic and extended lockdowns in China and continued labour and supply disruption.

“We have taken a series of steps to support and engage with our supply chain and have plans in place, which we will continue to adapt as the situation evolves.”

Earlier this month, the European Commission cleared the proposed acquisition of Meggitt by Parker-Hannifin, conditional on full compliance with commitments offered by Parker, including divestment of its aircraft wheel and brake division.

Meggitt confirmed that the transaction is still expected to complete in the third quarter of 2022.