Shares of Meggitt PLC (LON: MGGT) fell more than 4% on Tuesday after the firm said it is suspending its interim dividend as the first-half profit tumbled as much as 37%. Revenue fell 14% £917 million from £1.07 billion.
Therefore, the company swung to a pretax loss of £368.4 million for the six months ending June 30, compared to a profit of £72.6 million profit reported a year ago. Sales fell 27% in the aerospace business.
Meggitt, which produces aerospace components, has suffered immensely as the pandemic created havoc in the airline industry. The company slashed 1,800 jobs in April.
“We are still working through a difficult and uncertain COVID-19 environment, and 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,” said Tony Wood, the chief executive of Meggitt.
The order book fell 26% to £882 million from £1.19 billion.
Meggitt share price fell 4% despite logging a 1-month high at 315.8p earlier in the morning.