Falcon 5X cancellation and launch of successor
Released : 14 Dec 2017 07:00
RNS Number : 3033Z
Meggitt PLC
14 December 2017
14 December 2017
Meggitt PLC
Falcon 5X cancellation and launch of successor
Meggitt notes the announcement by Dassault Aviation of the cancellation of the Falcon 5X programme and the launch of a new Falcon programme featuring the same cross section, powered by Pratt & Whitney Canada engines, with an expected entry into service of 2022.
Dassault has indicated that it expects to reuse a maximum of work undertaken to date on the Falcon 5X and that it intends to work with Meggitt on the successor Falcon programme. Meggitt expects to have further discussions with Dassault Aviation in the coming weeks. Additionally, Meggitt has good content on the Pratt & Whitney PW800 engine anticipated to be used in the successor aircraft.
However, it remains possible that the cancellation of the Falcon 5X programme could lead to a noncash impairment of some or all of the capitalised work undertaken to date. Meggitt currently has £50 million of assets relating specifically to the 5X programme, and a further £11 million of assets relating to the Silvercrest engine on its balance sheet.
Meggitt will update the market on further developments as required.
Enquiries
Meggitt PLC
+44 (0)1202 597 597
Doug Webb, Chief Financial Officer
Adrian Bunn, Vice President Strategy and Investor Relations
FTI Consulting
+44 (0)20 3727 1000
Deborah Scott, Senior Managing Director Nick Hasell, Managing Director
Cautionary statement
This trading update, including information included or incorporated by reference in this trading update, may contain forwardlooking statements concerning Meggitt PLC or its group. Generally, the words "will", "may", "should", "continue", "believes", "expects", "intends", "anticipates" or similar expressions identify forwardlooking statements. Such forwardlooking statements involve risks, uncertainties and other important factors which could cause the actual results, performance or achievements of the Meggitt group or the market and economies in which the Meggitt group operates to be materially different from those expressed or implied by such forwardlooking statements. Many of these risks and uncertainties relate to factors that are beyond the ability of Meggitt PLC or its directors to control or estimate precisely, such as future market conditions and the behaviours of other market participants, and therefore undue reliance should not be placed on such statements, which speak only as at the date of this trading update. Neither Meggitt PLC, nor any of its group undertakings, nor the directors of any of them, assumes any obligations to, and do not intend to, update these forwardlooking statements, except as required pursuant to applicable law.
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Meggitt plc published this content on 14 December 2017 and is solely responsible for the information contained herein.
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