Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Cobham Slips 4% on Disappointing Half-Year

LONDON -- Cobham (LSE: COB.L  ) -- the aerospace and defense systems company -- is currently down 4% following the release of disappointing half-year results.

Revenues were 5% lower at 843 million pounds from 892 million pounds, with a 21% decrease in order intake, which was down to 768 million pounds from 969 million pounds. Underlying pre-tax profits dipped 4% to 142 million pounds, compared to 2011's 149 million pounds.

Underlying earnings per share, however, grew by 9%, underpinned by a share buy-back and lower tax rate. In addition, Cobham increased its interim dividend by 33% to 2.4p per share.

Cobham Chief Executive Bob Murphy said:

We have made progress in the first half delivering organic revenue growth, earnings per share up 9%, and a further step in rebalancing the portfolio towards our commercial markets.

We remain positive on the outlook for our commercial and non U.S. defense/security businesses which now represent 60% of revenue. The outlook for the U.S. defense/security market for the end of 2012 and 2013 is particularly uncertain due to the upcoming U.S. elections and the lack of political consensus on U.S. government budgets.

Given the uncertainties referred to, we are approaching 2013 with caution and building flexibility into the operating model including preparations for appropriate cost management in response to differing U.S. government budgetary outcomes.

The poor results mean that Cobham's share price continues its choppy progress -- up almost 38% from its end-of-2011 low of 167 pence, but down almost 17% on its April 2010 high of 275 pence.

If you're looking for steadier returns in your portfolio, you ought to know that ace stock-picker Neil Woodford has delivered an impressive 347% total return -- and thrashed the wider market -- during the 15 years to 31 December 2011.

What's more, you can discover the shares he now holds -- and which losers he's avoided -- within "8 Shares Held By Britain's Super Investor."

You can download this free Fool report about market legend Neil Woodford today. But hurry, the report is available for a limited time only.

Are you looking to profit from this uncertain economy? "Ten Steps To Making A Million In The Market" is the very latest Motley Fool guide to help Britain invest. Better. We urge you to read the report today -- it's free.

Further Motley Fool investment opportunities:

Jon Wallis doesn't own shares in Cobham. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1977203, ~/Articles/ArticleHandler.aspx, 10/27/2016 7:08:14 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes