Meggitt-USA is the bridge between the US and its UK mothership Meggitt plc. Meggitt has four divisions: Aircraft Braking Systems (MABS; brakes, brake controls), Control Systems (valves, pumps, fans, motors), Polymers & Composites (aircraft seals, flexible fuel tanks, coatings, composite structures), and Sensing Systems (test, measurement). Meggitt-USA designs and manufactures original equipment (OE) and aftermarket equipment used in civil aerospace and military defense applications -- for air, land, and sea. Non-military markets include automotive, energy, transportation, industrial, and medical. Meggitt's Equipment division makes aircraft fire protection, avionics, combat systems, and training systems.
Meggitt-USA makes electronics and aerospace products, including flight displays and avionics instruments, unmanned aerial vehicles ducting and sealing products, and aerospace fire detection systems Meggitt has equipment on more than 20,000 aircraft and a variety of ground vehicles, naval vessels, and training installations worldwide
Sales and Marketing
The company serves aerospace/aeronautics, engineering, electronics, law enforcement, civil aviation, medical, oil, automotive, petrochemical, marine, and government industries. The US Department of Defense (DoD) is its #1 customer. Other blue chip customers include Boeing, General Electric, General Dynamics, Honeywell, Lockheed Martin, and United Technologies, to name a few.
Military orders account for 38% of parent Meggitt's revenues. In 2013, 61% of military revenue came from US customers; 23% from Europe; and 16% from other regions.
The US defense budget is very important to Meggitt and its overall success. DoD funding has been at the mercy of cutbacks ordered by the Obama administration, which has turned its head away from more traditional combat weaponry, and toward programs and products that increase the military's speed, flexibility, and precision. Budget priorities favor electronic sensor and cyber warfare technology that supports ISR (intelligence, surveillance, and reconnaissance) missions, and C3I (command, control, communication, and intelligence) requirements.
Good news for Meggitt-USA is that the vast majority of its OE programs will continue to be funded. With aircraft representing 70% of its sales -- driven by Joint Strike Fighters, F16s, F18s, Typhoons, C130s, Apaches, and Black Hawks -- the company believes that this area will increase due to the sale of aftermarket parts, which represents 40% of its military revenue. Meggitt-USA has positioned itself for retrofit programs, which will mitigate for a slowdown in OE programs. Some of these aftermarket products include blast-proof fuel tanks, thermal management of electronics, and composite-made aerostructures.