Supplying parts for the huge aerospace programmes under way at Boeing and Airbus is what Meggitt (MGGT) does, and sales started to take off in the first half. Its small energy business is expanding fast, too, and underlying pre-tax profit rose 7 per cent to £182.4m. With little detail on US military spending, the company still expects percentage sales growth in mid-single-digits this year.
Underlying revenue from the big aircraft manufacturers grew 15 per cent to £152.5m, and bullish forecasts look justified. Repair work has been slack for over a year now as airlines run down inventories, and first-half aftermarket sales were flat. However, destocking cycles have typically lasted 12-18 months, and modest growth in the second quarter is a start. City analysts also expect a return to growth at the regional and business jets operation this year, although a cloud still hangs over the military division. Revenue only nudged down to £305m, but when US state spending cuts take effect, Meggitt predicts a 2 per cent drop in military sales both this year and next offset, perhaps, by extra demand for spares as defence chiefs squeeze more out of existing fleets. Elsewhere, spectacular growth from energy products, principally printed circuit heat exchangers, is unlikely to be repeated in the second half following a strong end to last year.