Meggitt reported FY19 results that were slightly better than anticipated, but a couple of headwinds are expected for 2020, which may last, turning to more cautious guidance for 2021. At first, the 737MAX grounding is expected to continue to weigh on the margin in 2020, delaying margin expansion in 2021. Softer traffic in H2 19, expecting to maintain this trend, should result in lower Aftermarket business.
