Meggitt wins new engine-component order

Meggitt has been selected by Snecma, part of the Safran Group, to provide a package of sensor products for engines that power the Boeing 737MAX.

The group, which provides high performance components and sub-systems for the aerospace, defence and energy markets, said that Snecma (through a 50/50 joint company with GE) has already secured orders for LEAP-1B engines to power over 1,000 aircraft.

Meggitt said that the contract will generate revenues (including original equipment, spares and repairs) of over $300m over the life of the engine.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

As part of the contract, Meggitt is to supply a suite of sensing products to measure vibration, shaft speed, critical temperatures and oil level.

While the company has already won engine sensor packages on the LEAP-1A and 1C in January 2012, this new contract win takes the value of Meggitt's sensors on LEAP family engines to some $500m over the lifetime of the Boeing, Airbus (A320 neo) and COMAC (C919) aircraft.

"This contract underscores our belief that delivery and quality improvements will drive the group's long-term organic growth potential," according to Meggitt's Chief Executive Terry Twigger.

"We are delighted that Snecma has demonstrated continued confidence in our business and look forward to strengthening our relationship further."