Britain's Meggitt says to outperform weak parts market in 2016​

Britain's Meggitt says to outperform weak parts market in 2016​

LONDON (Reuters) – Meggitt , a supplier of wheels, brakes & electronic systems to planemakers, said it would grow underlying revenue in the low to single digits next year, outperforming a weak market that prompted it to warn on this year's profit in October.

The British company said lower demand for spare aircraft parts, the reason for October's downgrade, would continue into 2016 yet it would be broadly offset by its previously announced cost cutting plans.

Shares in the group, which have gained little ground since they plunged 19 percent after the warning, rose 0.5 percent to 379 pence at 0833 GMT on Monday.

Demand for Meggitt's equipment on some older types of planes deteriorated in recent months as more of those planes were taken out of service & broken up, flooding the market with alternative supplies of spare parts.

(Reporting by Sarah Young, Editing by Paul Sandle)

Source: “Reuters”