Meggitt ups dividend as year profit rises 3 pct

LONDON, March 4 (Reuters) - British aircraft parts supplier Meggitt (Other OTC: MEGGF - news) reported a 3 percent rise in annual profits, in line with forecasts, and said it would hike its dividend by 8 percent as a sign of confidence in its prospects for this year.

The company, which supplies flight displays and wheels to planemakers Airbus and Boeing (NYSE: BA - news) , on Tuesday posted underlying pretax profit of 377.8 million pounds ($631.6 million) in 2013, in line with a company supplied forecast of 375 million pounds.

"As a sign of our continuing confidence in the prospects for the group, we are recommending an increase in the full-year dividend of 8 percent," chief executive Stephen Young said in a statement.

The company said it planned to payout a total of 12.75 pence for 2013.

Annual revenue of 1.64 billion pounds, represented growth of 2 percent, in line with Meggitt's downgraded forecast for the year.

Last November the firm had guided to revenue growth in the low single digits, behind the mid-single digit percent revenue growth it had estimated in August, blaming production problems in the U.S.