Cobham Releases First-Half Results, Reviews Wireless, AvComm Businesses
Friday, August 18, 2017 | Comments

U.K. company Cobham, which owns test unit Cobham AvComm, released its first half results in line with expectations and said it will conduct a strategic review of its wireless and AvComm businesses.

The company reported broadly flat organic revenue, with headline revenue up 9 percent driven by favorable currency translation. The firm reported reduced underlying operating profit driven primarily by advanced electronic solutions (anticipated increased costs), aviation services (reduced natural resources flying and repricing of Qantas contract) and increased IT amortization.

Cobham’s order intake was 4 percent higher at constant currency, excluding a multiyear Qantas extension received in 2016. The company said its full-year outlook is unchanged, but there are a wide range of potential outcomes for 2017.

"We have been working hard to build the foundations for our future success, but we are in the early stages of implementing a challenging turnaround in the group's performance,” said CEO David Lockwood. “Cobham has a number of high-quality businesses with differentiated technologies and know-how and leading positions in a number of attractive markets. This gives us confidence in Cobham's future."

Following a review of its portfolio of businesses, the company concluded that Cobham is best placed to generate value when it focuses on its defense and commercial aerospace markets. Executives therefore decided to commence a strategic review of the group's wireless and AvComm business units, both part of the communications and connectivity sector, comprising circa 10 percent of the group's revenue.

“These businesses have strong technology and/or market positions, and we will investigate how to optimize shareholder value,” a statement said.

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