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AIR - Airbus SE News Story

€103.68 0.8  0.8%

Last Trade - 16/04/21

Sector
Industrials
Size
Large Cap
Market Cap £70.40bn
Enterprise Value £74.04bn
Revenue £43.25bn
Position in Universe 13th / 847

UPDATE 1-UK's Meggitt eyes return to growth after pandemic slump

Thu 4th March, 2021 7:57am
(Adds detail, background)
    LONDON, March 4 (Reuters) - British engineer Meggitt
 MGGT.L  said that it could return to profit growth in 2021
provided there are no further lockdowns, after the pandemic
halved profit last year as the travel slump slashed demand
aircraft parts. 
    The company, which supplies jet parts such as braking
systems, sensors and fuel systems, said that the cut in
production rates at Boeing  BA.N , Airbus  AIR.PA  and
engine-makers drove its 2020 underlying operating profit down by
53% to 191 million pounds ($267 million).
    That fall came despite stronger outcomes in its defence and
energy units. 
    For this year, Meggitt said that it expected air traffic to
recover in the second half, and if there were no further
COVID-19 lockdowns, operating profit would rise versus last
year.
    "The roll-out of vaccines, coupled with significant pent-up
demand to travel, provides a supportive backdrop for the
recovery in civil aerospace in 2021," Chief Executive Tony Wood
said in a statement on Thursday.  
    Meggitt last year cut costs by 450 million pounds in
response to the shrinking demand from aviation customers,
including a reduction in staff numbers of 26% in the year. 
    Since announcements on positive trial results for vaccines
in November, shares in Meggitt have recovered some of their
losses over the 12 month period, but they remain down 22%
compared to this time last year. 

($1 = 0.7165 pounds)

 (Reporting by Sarah Young; Editing by Alistair Smout)
 ((sarah.young@thomsonreuters.com; +44 20 7542 1109; Reuters
Messaging: sarah.young.thomsonreuters@reuters.net))
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