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Immediate release                                                                                                            30 October 2009

Meggitt PLC ("Meggitt" or "the Group")

Interim Management Statement

Meggitt PLC, a leading international company specialising in aerospace equipment, sensing and defence systems, today issues the following Interim Management Statement.

This statement covers the period from 1 July 2009 to 30 October 2009 and constitutes Meggitt's second 2009 Interim Management Statement as required by the UK Listing Authority's Disclosure and Transparency Rules.  

In the last four months we have seen signs of stabilisation in the key macro drivers of our civil aftermarket, namely, air traffic (measured in available seat kilometres (ASKs)) and the number of landings made by the business jet fleet. Most external commentators now expect air traffic in general to recover during 2010. Production deliveries for large jets have been sustained at higher levels than many had anticipated, a trend which now looks set to continue in 2010. Destocking by our civil aerospace customers continued but at a reduced level in the period.  

The outlook for our military business remains healthy while demand for our energy products is mixed, with industrial/power generation relatively robust but offshore gas-related demand remaining weak due to depressed gas prices.

We continue to run ahead of schedule on our cost reduction programme, which aims to achieve a run rate of £50m pa of savings by the end of 2010. Headcount has been reduced by 12% since the July 2008 peak and we are on track to achieve 2009's increased target savings of £25m. These savings will mitigate substantially the impact of the civil downturn and resultant destocking on margins.

The financial position of the Group remains strong and is substantially unchanged since the Interim Results in August. There is good forward visibility of financing and significant bank facility headroom, while Meggitt remains well within its bank covenants and debt has continued to reduce.  A strong uptake on the scrip dividend suggests that 2009 cash generation will be better than we had anticipated.  There was no acquisition or disposal activity during the third quarter of 2009.

SUMMARY AND OUTLOOK

In summary, the outlook for our military markets remains healthy and the macro civil market demand drivers are showing signs of stabilisation.  Although our civil customers continue to destock, better than expected progress in our cost reduction programmes has mitigated substantially the impact of the civil downturn on margins. The lower cost base, together with our large installed fleet, sole source positions and sound financial position, leave us well placed to benefit when economic conditions improve.  Trading in the current year continues in line with the Board's expectations.

For further information, please contact:

Meggitt PLC

Terry Twigger, Chief Executive                01202 597597

Stephen Young, Group Finance Director

Andy Mann, Investor Relations

Buchanan Communications

Charles Ryland                                         020 7466 5000

Jeremy Garcia

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