Meggitt on Tuesday cancelled its interim dividend to preserve cash as the British aerospace supplier posted a 37% fall in first-half profit after the coronavirus crisis sent the civil aviation industry to a grinding halt.
The COVID-19 pandemic led to a 27% drop in sales at the company’s aerospace business, which supplies aerospace manufacturers, including customers Airbus and Boeing, which have been hit by the collapse of the global industry amid travel restrictions.
Meggitt, which supplies aircraft parts such as braking systems, sensors and fuel systems, and provides follow-on services, has been on a cost-cutting drive. It said in April it would axe about 1,800 jobs before holding back shareholder payments.
“While it’s too early to precisely predict the trajectory of the return to prior levels of activity in civil aerospace, we continue to focus on ensuring that the business is well positioned to benefit from the recovery,” Chief Executive Officer Tony Wood said.
Underlying operating profit fell to 102 million pounds ($134.19 million) in the six months to June, from 161 million pounds a year earlier. Total revenue fell 14%.
The company paid an interim dividend of 5.55 pence last year.
($1 = 0.7601 pounds)
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