Engineering news
The Dorset-based company reported that its revenue had increased 21% to £1.99 billion boosted by acquisitions and foreign currency movements. Strong organic growth, including multi-year orders in civil aftermarket and military, offset declines in civil original equipment and energy, it said.
The company said it had made progress with strategic initiatives. During the year, it closed three sites in Kassel, Germany; Rugby, UK; and Louisville, US, and plans to close another site in Corona in California in 2017. The company sold Meggitt Target Systems to QinetiQ for £57.5 million in December, and is achieving “significant inventory and productivity improvement” through its lean Meggitt Production System.
The company added that it has benefitted from foreign currency movements and the composites acquisitions completed in late 2015.
Meggitt said 2016 trading was in line with its expectations and the stronger second half performance gives it good momentum going into 2017.
"We are past the peak of engineering investment on the many new aircraft programmes that have recently entered, or are entering, into service. Our increased content on new programmes will drive higher revenue in the coming years,” said Meggitt chief executive Stephen Young.
"We are now focusing our resources to accelerate progress on our key operational initiatives which we expect will deliver significant improvement in operating margin and cash conversion by 2021."
The company’s share price rose more than 11% this morning on the news.
Meggitt employs more than 10,500 people in facilities across Asia, Europe and the Americas. The company has equipment on more than 60,000 aircraft, numerous ground vehicles and energy applications worldwide.