(Recasts, adds background, share price)
LONDON, Nov 10 (Reuters) - British engineer Meggitt
said weakening demand from airlines for spare parts continued to
hurt its performance, as new lockdowns put paid to the
improvement it expected to see in the fourth quarter.
The company, which supplies jet parts such as braking
systems, sensors and fuel systems, said however its defence and
energy businesses continued to grow and it was on track to make
cost savings in line with its targets.
Meggitt said the pandemic would cut its profit by as much as
55% this year. It expected to make underlying operating profit
of between 180 million pounds and 200 million pounds for 2020,
compared to a consensus forecast of 205 million pounds.
The pandemic hammered its aerospace unit as lockdowns and
travel restrictions meant airlines slashed their flying
schedules, resulting in much lower demand for parts and
maintenance services that Meggitt provides.
Earlier in the year, it said it would cut costs by 400
million pounds to 450 million pounds for 2020, reduce staff
numbers by 1,800 and axe its dividend.
Shares in the company were flat at 374 pence at 0853 GMT.
The stock had closed up 28% on Monday, boosted by positive news
about a vaccine.
"While we remain alive to the challenges which COVID-19
continues to pose, we are encouraged by recent news on vaccine
development and the positive implications for air travel,"
Meggitt's CEO Tony Wood said on Tuesday.
(Reporting by Sarah Young, editing by Estelle Shirbon and Paul
Sandle)
