(Alliance News) - Meggitt PLC on Thursday reported a sharp increase in half-year revenue, due to a good performance by its Civil Original Equipment and Energy business.
In addition, it said that its takeover by Parker-Hannifin Corp remains on track.
The Coventry, England-based aerospace components maker swung to a pretax loss of GBP6.5 million in the first half of 2022, from a profit of GBP33.6 million a year before.
Operating costs totalled GBP271.1 million, up 48% from GBP183.2 million.
More positively, revenue grew 21% to GBP821.0 million from GBP680.0 million.
The company cited organic revenue growth of 11%, due to "strong" growth in the civil aftermarket and its Civil Original Equipment and Energy businesses.
Orders rose 48% to GBP996.9 million from GBP671.4 million.
The FTSE 100 company did not recommend an interim dividend, unchanged from last year.
The company explained that it is skipping its payout, in light of the proposed transaction by Parker-Hannifin.
Cleveland, Ohio-based Parker-Hannifin makes engineered products for the aerospace, automotive and manufacturing industries.
In August 2021, Meggitt said it had accepted a GBP6.3 billion takeover offer from Parker-Hannifin Corp. Meggitt and Parker-Hannifin have agreed to offer legally binding commitments to the UK government as part of the deal.
Meggitt said it is not providing financial guidance, as it is still in an offer period under the UK Takeover Code.
The acquisition remains on track for completion in the third quarter of this year.
Nonetheless, it forecasted that the recovery in the civil aerospace markets will continue.
Further, it stated that the outlook for defence markets is stable.
"Combined with our recent investments in facilities and the ongoing development of our engineering and manufacturing capabilities, the group remains well positioned for the future. However, we are mindful of the challenges that our industry continues to face with availability across the supply chain and continued cost inflation on materials and labour. We remain focused on mitigating these effects and the Group is well placed to do so," Chief Executive Tony Wood said.
Meggitt shares were trading 0.1% higher at 790.60 pence each on Thursday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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