Cobham reports a 32 percent increase in first-half profits
Company benefits from strategic investments in military and government markets; its work with M/A-COM, which it acquired from Tyco Electronics in September 2008, had resulted in increased technology collaboration and new contract awards
Cobham has reported a 32 percent increase in first-half profits following a number of strategic investments in military and government markets.
The aerospace and defense electronics group saw revenue for the first six months of the year increase by more than 50 percent to £952 million, which it said was boosted by acquisitions and favorable exchange rates. Trading margin rose by 17 percent and the company reported an organic margin improvement of 1.8 percent as a result of ongoing operational efficiencies.
Overall group trading profit increased by 51 percent to £162 million, up from £107 million a year earlier, and basic earnings per share increased from 5.5p to 9.3p. Order intake rose nine per cent to £893 million, resulting in an order book at the end of the period of around £2.4 billion compared with £2.7 billion a year earlier.
The group’s military and government technology business reported good growth with organic revenue up by 7 percent, but revenue from commercial activities fell by 13 percent, resulting in a modest one per cent organic growth in its technology division.
Cobham’s forays into the homeland security market helped. The company said that its work with M/A-COM, which it acquired from Tyco Electronics in September 2008, had resulted in increased technology collaboration and new contract awards. As a result the company is positive about the year ahead.
Allan Cook, Cobham’s chief executive, said:
We have seen good levels of organic growth in our military and government businesses in the first half, although this has been partly offset by the anticipated subdued activity in the defense communications and mission equipment businesses, as well as by the generally unfavorable conditions in our commercial markets.
Our core military and government markets continue to be healthy and revenue from vehicle intercoms should increase in the second half. The board expects to achieve further progress in the full year with increased levels of organic revenue growth from the technology divisions and remains confident of high single-digit organic revenue growth over the medium term.
