Second-quarter aftermarket recovery lifts Meggitt

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At systems maker Meggitt, a strong first half in original equipment sales and a second-quarter recovery in aftermarket business lifted first half civil-sector sales by 4% to £365 million ($561 million), more than offsetting a 1% decline to £305 million in military sales.

Total aircraft sector sales of 670.4 million, representing 83% of the group total, were up a short 2%.

In aircraft braking systems, revenue gained 7% to £159 million and operating profit 3% to £56.2 million. Control systems revenue was up 3% at £111 million, while profit jumped 11% to £30.1 million.

In line with earlier guidance, Meggitt expects civil OE revenues to grow at an average of 7-8% and civil aftermarket revenues at an average of 8-9% over the medium term, while military revenue - reflecting the uncertainty of budget cuts in the US market, which accounts for 63% of sales - is forecast to show a modest decline in revenues in 2013 and 2014 before a return to growth in the medium term, "underpinned by strong sole-source positions on a broad range of workhorse platforms and a growing installed base".