Meggitt Plc Sees trading below views, now sees Q3 sales growth in the low single digits. - Underlying trading during the period covered by this statement has been slightly below expectations, principally due to short term production difficulties at Meggitt Sensing Systems and the timing of contract wins and project milestones in one of our energy businesses.Civil aftermarket revenues continued their gradual recovery, up 2% year on year in the third quarter. Encouragingly, military revenues remained flat despite sequestration. - The military outlook remains less certain due to the lack of visibility on sequestration in the USA. Prospects for the energy market remain very encouraging. - Now expects a 2013 revenue growth rate in the low single digits. - The Group continues to expect percentage constant currency revenue growth in the mid-single digits in 2014.
- Raw materials supply issue: the Group has recently identified a raw material supply issue relating to one product type dating back to 2012. A solution is in place, including where necessary the replacement of the relevant parts over the next few years. The cost of this issue is uncertain but we are providing £20m to account for the expected total financial exposure over the coming years. - Source TradeTheNews.com