Wednesday, November 5, 2008


5 November 2008
Ref: 0266

The Group has experienced strong organic growth in the first nine months of 2008, consistent with the Board’s expectations. Acquisitions completed in the period to date and in the prior year have contributed additional growth and there has been a modest beneficial impact from the translation of the Group’s earnings in foreign currency.

Since the end of the first half of 2008, there have been a number of important new business developments:

§ At the end of September, the acquisition of M/A-COM was completed for US$425 million, with an effective price of US$380 million after an allowable tax expense relating to goodwill amortisation. The process for the sale of M/A-COM Technology Solutions is underway, with significant interest being shown by potential acquirers.

Also, in early October the acquisition of GMS was completed for US$26 million;

§ The Group’s recently acquired Defence Systems Division business unit, Sensor and Antenna Systems, Lansdale, was awarded contracts in July and October with the US Navy worth US$77 million in aggregate to produce Low Band Transmitter/Antenna Groups and spare parts;

§ In August, Cobham announced it is to provide the Radio and Audio Integrated Management System for the Airbus A350 XWB, which is anticipated to be worth US$200 million over the life of the contract; and

§ Jeremy Wensinger was appointed to the position of President Designate of Defence Systems, Cobham’s largest operating Division, with effect from 15 September 2008.

Cobham’s net debt was £475 million at the end of the third quarter, after the completion of the acquisitions of M/A-COM and GMS and the impact of a stronger US dollar spot rate on Cobham’s dollar denominated debt, which is matched against dollar denominated assets.

The continuing strong growth and the robust order book, which increased to £2.5 billion at the end of the third quarter, enables the Board to remain confident of its previous outlook.

Cobham’s preliminary results for the year ended 31 December 2008 will be announced on 5 March 2009.
- ends -

1. Cobham plc is an international company engaged in the development, delivery and support of advanced aerospace and defence systems for land, sea and air platforms.

The Company specialises in the provision of components, subsystems and services that keep people safe, improve communications and enhance the capability of aerospace and defence platforms.
2. This document contains ‘forward-looking statements’ with respect to the financial condition, results of operations and business of Cobham and to certain of Cobham’s plans and objectives with respect to these items.

Technorati Tags:

No comments: