Meggitt, aircraft equipment manufacturer, has issued a warning that its full year profits could fall meaningfully" below expectations, following weak demand across its civil and military aviation markets and a slump in its energy operations. Meggitt’s shares fell 22% on the news. During the third quarter, the company reported trading down well below management expectations.
Although Meggitt has been enjoying continued growth in its civil aviation unit, this has been offset by a lacklustre preformance in the civil aftermarket business, military and energy operations. As a result, underlying sales dropped by 1%. Lower than anticipated demand for spare parts for older civil and military aircraft, subdued volume growth and a number of programme deferrals from customers hit margins and impacted the engineer's profitability.