Meggitt drops on US warning
Wednesday 25 January 1995
The company said full-year profits, due in March, would be no more than £15m, although it would maintain its final dividend at 2.63p per share.
In September analysts downgraded profit forecasts from £25m to £18m after Meggitt reported a fall in interim profits and warned of weak aerospace markets.
Nigel McCorkell, managing director, said that management at the company's troubled US plastic fabricating division had been replaced and the hope was for better trading in 1995.
However, the disruption to the business and the subsequent loss of orders meant that the operation was unlikely to return to profit in the next year.
Meggitt would have to take a "significant write-off'' in the second half, but, as the company's problems were confined to one operation, it could justify maintaining the dividend.
During the second half the rest of the group had traded in line with expectations, and electronics continued to be the bright spot, the company said. Immediate prospects within the aerospace sector remained uncertain but there had been a recent improvement in industrial markets, Mr McCorkell said.
Cuts in civil aerospace programmes have hit volumes and put pressure on Meggitt's margins, and the company is still facing weak trading in its key German market.
- 1 Caitlyn Jenner car crash: Driver who died in collision sued by surviving passengers for $18.5m
- 2 Pictures show young Palestinian girl biting Israeli soldier trying to detain boy during West Bank protests
- 3 Watch the Supermoon live: How to see the brightest Moon of the year tonight
- 4 Hulk Hogan wants to be Donald Trump's running mate in the US Presidential election
- 5 Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
Caitlyn Jenner car crash: Driver who died in collision sued by surviving passengers for $18.5m
Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
Watch the Supermoon live: How to see the brightest Moon of the year tonight
Hulk Hogan wants to be Donald Trump's running mate in the US Presidential election
Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Stock up on canned food for stock market crash, warns former Gordon Brown adviser
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...