Cobham Sees Revenue Continuing To Grow In 4th Quarter

By Jonathan Buck Of DOW JONES NEWSWIRES LONDON -(Dow Jones)- Cobham PLC (COB.LN), the defense and commercial aerospace equipment maker, Wednesday said revenue had grown strongly in the first nine months of the year and it expected that trend to continue in the fourth quarter. The company's optimism was based on an order book worth GBP2.5 billion, developments in contracts for the provision of next-generation vehicle-intercom systems and the benefits of continuing efficiencies, including the integration of facilities and procurement savings. "The board expects to achieve its previous outlook of further progress, with the fourth-quarter performance expected to lead to increased levels of organic revenue growth from the technology divisions in the full year," Cobham said in a trading statement. Cobham said its military and government businesses have performed well in continuing healthy market conditions but its commercial businesses have declined in generally unfavorable market conditions, as expected. Its businesses provide services ranging from satellite communications and moving critical information around the digital battlefield to nose-to-tail refueling systems and special mission flight operations. Its net debt increased to GBP468 million from GBP442 million at June 30 primarily due to the July payment of the final dividend, an adverse movement in foreign-exchange rates, as most of Cobham's debt is denominated in U.S. dollars, and net deferred acquisition-related payments, partly offset by good cash generation from operations in the period. The company in August said Chief Operating Officer Andy Stevens will succeed Chief Executive Allan Cook, who is due to retire Dec. 31. Cobham also has begun a search for a successor to Chairman David Turner, who will retire in May, 2010. Cobham Wednesday said that search continued. Its shares Tuesday closed at 222 pence. The stock has gained 10% in value since the start of 2009, while the Dow Jones Stoxx Europe 600 industrial goods and services sector has risen almost 25% during the period. Company Web site: www.cobham.com -By Jonathan Buck, Dow Jones Newswires; +44 (0)207 842 8237; jonathan.buck@dowjones.com