Meggitt shares hit turbulence after hold-ups in production

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The Independent Online

Shares in Meggitt went into a tailspin yesterday, dropping 11 per cent after the aerospace engineer admitted production problems would hit revenues this year.

Meggitt, which supplies wheels and other aviation parts to plane-makers Airbus and Boeing, now expects revenues this year to be up by "low single digits", down from an August prediction of "mid single digits".

City analysts had expected the FTSE 100-listed engineer to report sales of £1.69bn this year, but the company said trading since July "had been slightly below expectations".

It is mostly due to production difficulties at the group's sensing systems division, which makes devices that measure conditions in extreme environments.

The shares fell 63.5p to 509p.