Meggitt has what chief executive Terry Twigger describes as "perfect balance". Speaking just before the Paris airshow, Twigger says the Anglo-American-Swiss operation is growing rapidly but evenly across the sectors it supports.
The company's booth at Le Bourget (Hall 2B, K14) pays testimony to that. Its new military flight deck systems, aerial and ground-based targetry systems and towed countermeasures, new silicon dioxide cable applications, on-engine condition monitoring and intelligent fire and smoke - and bleed air leak - detection systems are among the many products and systems in focus.
"It has been one of the busiest periods in the group's history," says Twigger. Although company revenues have flattened, Twigger is "cautiously optimistic" that a recovery in 2005 will see it benefiting from all the work put in now.
Steady stream
"Our policy is to expand the group by organic growth and by acquisition. We put about 6% of turnover to research and development - that's something like £100 million over the last five years - and we are generating a steady stream of new products," Twigger says.
Since the beginning of 2002, acquisitions have reached new levels. "The new businesses are integrated with existing research and development to enhance our technological skills and problem solving applications. The fruits of these efforts will be there for our stand visitors to see."
Twigger's aim is for long term balance with 40% share each between civil and military operations and the remaining 20% for sensors. He also sees Meggitt's aftermarket activities representing 40% of revenue with original equipment 60%. The aim is a 10% growth evenly divided between organic and acquisition.
"We are developing proprietary technology in niche markets and growing market share. We are working at finding those businesses that will help us widen our niches," Twigger says.
The £15 million purchase of BAE Systems air data computers and data acquisition systems a year ago is now fully integrated into Meggitt Avionics' Fareham UK operation, and has bolstered military sales considerably. In particular, it has enabled Meggitt to supply flight deck systems which limit pilot workload in military aircraft and interface with their digital flight control computers.
The data acquisition products include integrated health and monitoring units for rotorcraft, which, in contrast to competing systems, celebrate over a million operational flying hours, across six helicopter types, operating in 15 countries and in a range of temperatures and climates, further strengthening the scope of the company's position in condition monitoring.
The £16.3 million acquisition of Caswell International was completed in April. The acquisition has enabled Meggitt Defence Systems - market leader in aerial Page countermeasures and targetry for anti-aircraft weapon systems training - to address not only range combat training requirements with ground-based targetry systems but the challenges of 21st Century urban warfare involving military operations and civil law enforcement.
The radio frequency cable product business of Kaman Aerospace, bought for £5.1 million in April 2002, is integrated into Meggitt Safety Systems' product range at Simi Valley, California. The company is now looking at a wide range of applications for its 'fire wire' in extreme, and flight safety critical, environments - Meggitt's specialist silicon dioxide cable is described as the only flexible, lightweight yet rugged, 2000°F-tolerant alternative to organic cable which is destined to become less effective with the rising engine and aircraft temperatures resulting from advancing high performance aerospace technology. This follows success in wire harness replacements for power and signal transmission in military aircraft and nuclear applications. The product conforms to sub-FAR 88 on fuel tank flammability.
Outstanding
Meggitt's £33 million purchase of Lodge's aerospace sensors, transducers and igniter product lines from Smiths Group further strengthened its position in engine sensing products. Lodge, since renamed Vibro-Meter UK to complement Vibro-Meter in Switzerland with its 50-year track record in condition monitoring, has added the parameters of temperature, pressure and speed to Meggitt's sensing portfolio.
Programmes include the world's first comprehensive on-engine monitoring unit (EMU) which Vibro-Meter is developing on Rolls-Royce's Trent 900 engine for the Airbus A380. Vibration, speed, pressure, temperature and oil debris information derived from many Meggitt sensors and combined with data from the FADEC, is linked by Meggitt's electronics, providing the most detailed information on engine condition to date, reducing unnecessary inspection and expensive manual diagnosis.
In March, Meggitt won the contract to provide the EMU for the A380's alternative engine, General Electric's Alliance GP7200, with BAE Systems, North America. Meggitt was also selected as a Tier 1 partner with Goodrich to supply a complete package of sensors to Rolls-Royce, while flight test sensors from Meggitt Electronics company Endevco have been selected by Lockheed Martin for the Joint Strike Fighter.
"We have a consistent record of outstanding financial performance," says Twigger. "We will continue to focus on aerospace, defence and high value sensors; we will continue developing new products for organic growth and complement with selective acquisitions."
Source: Flight Daily News
