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Meggitt trims revenue growth forecast after tough quarter

LONDON, Nov 1 (Reuters) - British aircraft parts supplier Meggitt lowered its full-year revenue guidance after trading over the last four months had been slightly below its expectations.

The supplier of avionics and wheels to planemakers including Airbus and Boeing, said on Friday it now expects to report 2013 revenue growth in the low single digits. In August Meggitt said it expected to deliver mid-single-digit revenue growth for the year.

Prior to Friday's statement Meggitt had on average been expected to report revenue of 1.69 billion pounds ($2.72 billion) this year, according to a Thomson Reuters poll of 14 analysts.

But the company said trading in the four months to Oct. 31 had fallen "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."

It added that the strengthening of sterling against the U.S. dollar in the second half of the year had also had a negative impact.

Meggitt also said it had recently identified a raw material supply issue relating to one product type dating back to 2012. It said a solution was 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 20 million pounds to account for the expected total financial exposure over the coming years," the company said.

Civil aerospace after-market revenues continued their gradual recovery, rising 2 percent year-on-year in the third quarter, while military revenues were flat, it said.

The civil aerospace market remains strong, said Meggitt, adding that the military outlook was still uncertain due to the lack of visibility on sequestration in the U.S.

Meggitt said its 2011 acquisition of PacSci had achieved total synergies of $25 million, against its original target of $18 million.