Aerospace And Defence Company Meggitt Posts $287.7M Profit In 2019

Meggitt PLC MEGGF has released its annual results for 2019, showing growth across all verticals.

What Happened

Meggitt specializes in components and sub-systems for aerospace, defense, and select energy markets. 

The company released its annual results on Tuesday and reported a net profit of 222.6 million pounds or $287.7 million. 

Meggitt’s profits beat market expectations of a 174.1 million pound profit for 2019. In 2018, the company had generated 179 million pounds in profits. 

According to the company, it saw organic growth of 10% in orders. The group’s organic revenue growth stood at 8%. 

Tony Wood, Chief Executive of Meggitt, commented, "We delivered another strong set of results in 2019, with organic revenue growth of 8%, ahead of our raised guidance, and good performance across all end markets, particularly Defence." He pointed out that despite headwinds, Meggitt managed to increase its underlying operating profit of 10% to 403 million pounds.

What It Means

Meggitt has projected organic revenue to be in the range of 2-4% in 2020. The underlying operating margins would increase by 30 to 50 basis points. 

Production halt of Boeing Co.’s BA 737 Max planes, supply chain disruption due to Covid-19, and the macroeconomic impact of the epidemic in the short-term were all cited as reasons for lower revenue projects in 2020.

Meggitt announced that Chairman Nigel Rudd would not stand for reelection in 2021 at the annual general meeting. 

Price Action

Meggitt shares traded 2.25% lower at $7.54 in London on Tuesday at press time. The shares closed 2.35% lower at $7.90 in the OTC market on Monday.

Photo Credit: Courtesy of Meggitt.