(Alliance News) - Meggitt PLC on Thursday said its first quarter revenue climbed, though it remains below pre-pandemic levels amid a bumpy recovery in the civil aerospace market.
The Coventry, England-based aerospace components maker said revenue in the first quarter of 2022 climbed 5% annually on an organic basis. Compared to three years earlier, however, so before the onset of the pandemic, revenue was down 23% organically.
Civil order intake doubled annually in the quarter, though this was against a "weak" comparative. Original equipment orders surged 76%, while aftermarket orders were up almost three-fold.
"In civil aerospace, revenue grew 25% with original equipment and aftermarket revenue up 11% and 37% respectively. Within civil aftermarket, regional jet revenue was up 65%, with large and business jets up 40% and 13% respectively," Meggitt explained.
Defence revenue, meanwhile, was 16% lower, as Meggitt grapples with the effects of inventory destocking and weaker aftermarket ordering from the US Defence Logistics Agency.
Energy revenue, meanwhile, climbed 27% annually.
Meggitt added: "We are pleased with the strengthening of conditions in the quarter. However, the recovery in civil aerospace continues to be uneven, demonstrated by the lingering effects of the pandemic and extended lockdowns in China and continued labour and supply disruption. We have taken a series of steps to support and engage with our supply chain and have plans in place, which we will continue to adapt as the situation evolves."
Meggitt is not providing financial guidance for 2022, as it is under an offer period.
Earlier in April, suitor Parker-Hannifin Corp said its proposed GBP6.3 billion takeover of Meggitt was cleared by European regulatory authorities.
In late September, Meggitt shareholders had backed the deal almost unanimously.
Parker expects the acquisition to complete in the third quarter of this year.
Meggitt shares were largely flat at 769.20 pence each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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