Asian sales boost Meggitt

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The Independent Online
Sales to new markets helped pre- tax profits at Meggitt, the engineering group, rise 10 per cent to pounds 23.3m in 1993, writes Diane Coyle.

The electronics division improved its profits by 60 per cent to pounds 6.9m. Mr Coates said: 'We are selling electronic components the the Far East, which is very satisfying.' Group sales to the Asia-Pacific region more than doubled to pounds 23m.

The energy arm doubled its profits, to pounds 2.2m, following earlier restructuring, and Meggitt said there was slow improvement in the industrial markets it served.

Aerospace sales still accounted for 37 per cent of the group's pounds 359.7m turnover, and the operating profit of the division was almost flat at pounds 13.9m. Meggitt had improved its market share with new products such as advanced instrumentation and 'smart' sensors for the next generation of missiles. Mr Coates said the company will increase research and development spending for the fourth year in succession. Profits in the controls businesses fell 16 per cent to pounds 5.2m due to reorganisation during the year. Meggitt shares fell 31 2 p to 1051 2 p.