Cobham Share Chat (COB)

"Cobham is pleased to support this critical Department of Defense programme to enhance military satellite communications capability by providing the portfolio of RF modules that support additional bandwidth required by the military," said Jill Kale, vice president of Cobham Defence Electronics. "This award reinforces our leadership role in the supply of high reliability cost effective Space qualified hardware."

According to Boeing, the mission of the Wideband Global SATCOM (WGS) is to provide broadband communications connectivity for U.S. and allied warfighters around the world. WGS is the highest-capacity military communications system in the U.S. Department of Defense arsenal, providing a quantum leap in communications capability for the U.S. military.

Long lead time work on the contract started in 2010, and production began in early 2012. Work is expected to be finished in 2013 and takes place at the Lowell, Massachusetts facility, northwest of Boston.

Cobham Awarded $65 Million Contract for Boeing Wideband Global SATCOM Satellite Components

Cobham has been awarded a $65 million contract to supply electronic systems to Boeing's Wideband Global SATCOM satellite programme. The contract funds production on three satellite flight sets, with additional options for three more sets.

Cobham Defence Electronics in Lowell, Massachusetts will supply 1000 modules for the phased array antennas on each satellite. The modules are made up of a complex power amplifier, beamformer and receive amplifier modules. The modules allow the satellite to transmit and receive communications.

OUTLOOK

The Group has 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.

Cobham remains positive on the outlook for commercial and non US defence/security businesses which now represent 60% of revenue. The outlook for the US defence/security market for the end of 2012 and 2013 is particularly uncertain due to the upcoming US elections and the lack of political consensus on US Government budgets.

The July 2012 divestments of the Beacon businesses and the more first half weighted contribution from the 2011 share buy-back will result in full year EPS growth being lower than the first half. The Board therefore expects full year 2012 EPS to be similar to the prior year taking account of the Beacon divestments, assuming any hiatus in US order placement is no more severe than the usual delays in approving US Government budgets.

Given the uncertainties referred to Cobham is approaching 2013 with caution and building flexibility into its operating model including preparations for appropriate cost management in response to differing US Government budgetary outcomes.

Cobham's strategy, together with its strong balance sheet and inherently cash generative characteristics, give the Board confidence that Cobham will continue to make progress over the medium term.

Bob Murphy, Cobham Chief Executive, 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 US defence/security businesses which now represent 60% of revenue. The outlook for the US defence/security market for the end of 2012 and 2013 is particularly uncertain due to the upcoming US elections and the lack of political consensus on US Government budgets.

"The July 2012 divestment of the Beacon businesses and the more first half weighted contribution from the 2011 share buy-back will result in full year EPS growth being lower than the first half. The Board therefore expects full year 2012 EPS to be similar to the prior year taking account of the Beacon divestments, assuming any hiatus in US order placement is no more severe than the usual delays in approving US 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 US Government budgetary outcomes."

· £2.5bn order book with strength in Mission Systems and Aviation Services and good order intake in shorter cycle businesses - Group total affected by Analytic Solutions divestment

· Organic revenue growth of 1.7% in the core businesses - Group total affected by Analytic Solutions divestment

· Underlying EPS growth of 9% underpinned by share buy-back and lower tax rate

· Excellence in Delivery on track to deliver expected £42m of annualised, year-on-year efficiency savings since inception in 2010 to the end of 2012

· £281m Thrane & Thrane acquisition completed; expected to be strongly accretive in 2013 and adds further strength in commercial markets

· Interim dividend increased to 2.40p, rebalancing the full year dividend in line with Group's long standing, progressive dividend policy, after last year's step change

"Cobham's proven experience on military programmes provides Boeing with a high performance product with low technical risk to ensure the best overall value," said Kelly Coffield, president of Cobham Life Support. "Cobham is the world-wide leader in military OBIGGS providing solutions since 1985 on more than 3,000 aircraft flying today, ranging from military transport aircraft and helicopters, to regional and commercial platforms such as the B787, with more than five million flight hours total experience. Cobham's qualified staff can tailor the modular range of proven OBIGGS to fit a wide range of applications."

Cobham is a proud supplier to Boeing on several key systems vital to the KC-46A, with two other subcontracts for the hose and drogue aerial refuelling and body fuel tank systems. All equipment will be manufactured by Cobham Mission Equipment at its site in Davenport, Iowa.

Cobham to Supply Boeing with On-Board Inert Gas Generating System Equipment for US Air Force KC-46 Tanker Programme

DAVENPORT, Iowa - Cobham has been selected by Boeing to provide On-Board Inert Gas Generating System (OBIGGS) equipment for use on the US Air Force's new KC-46A Tanker Aircraft.

The OBIGGS fulfils a critical aircraft safety system role by displacing fuel tank vapours with inert nitrogen gas, reducing the risk of explosion. Cobham will provide the Air Separation Modules, ozone filter and sensor sub-system for the OBIGGS. The Engineering Manufacturing Development (EMD) phase started January 2012 with low-rate and full-rate production through 2028.

The US Air Force plans to initially acquire 179 KC-46A tanker aircraft from Boeing, each of which will carry Cobham-supplied OBIGGS equipment. Work will take place at Cobham Life Support's centre of excellence in Davenport, Iowa.