Meggitt wins trio of contracts

Meggitt, the engineering group specialising in 'extreme environment' components, announced three mammoth contracts on Monday morning.

The first is a deal to provide components for seven Hamilton Sundstrand thermal management packages on Pratt & Whitney PurePower geared turbofan engines, which will power aircraft such as the new Bombardier C-Series regional jet, Mitsubishi Regional Jet and Airbus A320neo aircraft.

Meggitt expects this to be worth around $1bn over the lifetime of the engine and aircraft programmes.

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"These contract wins are on highly innovative engines for equally innovative aircraft, attracting multiple orders.We look forward to working with Hamilton Sundstrand and Pratt & Whitney on these programmes which could last up to 40 years," according to Meggitt's Chief Executive Officer Terry Twigger.

The company has also been selected by Snecma (a subsidiary of French conglomerate Safran) to supply sensor products for the LEAP engine, a new baseline turbofan engine that will power the next generation of single-aisle commercial jets. This agreement will generate gross sales of more than $200m over the life of these engines.

The third contract is with planes and trains giant Bombardier and will see Meggitt provide its fire protection system for the Global 7000 and Global 8000 business jets. No financial information was regarding this contract.

Meggitt's shares have performed well over the last few months, gaining over 10% in the year-to-date. The stock reached its current 52-week high of 400.1p on Friday.

BC