The withdrawal of western troops from Iraq and Afghanistan has hit sales of military targeting and ammunition systems at FTSE 100 engineer Meggitt.
In a trading statement today, Meggitt said the hit on its military revenue and lower spending on maintaining brakes and wheels on old aircraft, has been offset by increased sales in its energy division. Also, customers are still spending on new jets.
Meggitt, which traces its history back to mid-19th-century London, is expecting revenue growth of around 10% this year. However, this is likely to halve in 2013. The group’s diversification into energy was best demonstrated by a $100 million (£62 million) deal with Petrobras in August. Meggitt will provide heat exchanges for the Brazilian oil giant.
Shares in Meggitt have rebounded this year from lows of 340p last December. But they slipped marginally to 383p as investors mulled the potential impact of the Government’s crackdown on defence spending.
