5th Nov 2008 07:00
RNS Number : 4601H
Cobham PLC
05 November 2008
5 November 2008
Ref: 0266
INTERIM MANAGEMENT STATEMENT
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.
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ENQUIRIES
Allan Cook, Chief Executive +44 (0)1202 882020
Warren Tucker, Chief Financial Officer +44 (0)1202 882020
Julian Wais, Director of Investor Relations +44 (0)1202 857998
Weber Shandwick Financial
Susan Ellis +44 (0)20 7067 0700
NOTES
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.
Forward-looking statements are sometimes but not always identified by their use of a date in the future or such words as ‘anticipates’, ‘aims’, ‘due’, ‘could’, ‘may’, ‘should’, ‘expects’, ‘believes’, ‘intends’, ‘plans’, ‘targets’, ‘goal’, or ‘estimates’. By their very nature, forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that may or will occur in the future.
There are various factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, changes in the economies, political situations and markets in which the Group operates; changes in government priorities due to programme reviews or revisions to strategic objectives; changes in the regulatory or competition frameworks in which the Group operates; the impact of legal or other proceedings against or which affect the Group; changes to or delays in programmes in which the Group is involved; the completion of acquisitions and divestitures and changes in exchange rates.
All written or verbal forward-looking statements, made in this document or made subsequently, which are attributable to Cobham or any other member of the Group or persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. Cobham does not intend to update these forward-looking statements.
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