Meggitt has appointed a former Rolls-Royce executive as chief operating officer to help boost the supplier of aircraft components’ plan to improve performance, as it reported a return to organic growth in the third quarter.
Tony Wood, former president of aerospace at Rolls-Royce, will join Meggitt from the start of next month. Mr Wood left Roll-Royce in a management shakeup last year.
Sir Nigel Rudd, Meggitt chairman, said Mr Wood’s “extensive industry experience will be invaluable as we support our customers with the unprecedented ramp-ups of their new programmes, whilst accelerating the progress of our strategic initiatives.”
Meggitt announced a shake-up of its supply chain to improve efficiency in response to falling profits earlier this year.
The company’s profits have suffered in recent years with pressures on all its business areas. Its military arm, which accounts for around a third of revenues, has struggled with falling US defence spending, while its energy division has been affected by the collapse in offshore oil and gas exploration. Its civil aviation business, meanwhile, has been hit by volatility in the lucrative after-sales market and increasingly cost-conscious carriers using more second-hand parts.
However, today Meggitt said revenues in the third quarter grew by 28 per cent. The numbers were boosted by the weak pound and the impact of acquisitions made last year, but the company also said revenue was 6 per cent higher than the same period last year excluding these factors.
Meggitt’s energy arm continued to struggle with an eight per cent decline in organic revenue, but civil aerospace and military revenues grew by nine and six per cent respectively.
Stephen Young, Meggitt chief executive, said:
Current trading is in line with our expectations and, having increased shipset content on key growth platforms, we are confident that we are well positioned to deliver organic revenue growth ahead of our end markets over the medium term.
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