(Adds analyst comment, share price)
LONDON, Aug 17 (Reuters) - Struggling British aerospace anddefence company Cobham said on Wednesday that ChiefExecutive Bob Murphy would step down by the end of the year andbe succeeded by David Lockwood, current boss of technologycompany Laird.
Cobham's difficult recent performance had prompted mediareports that Murphy could be sacked. The firm said he wasleaving "to pursue other opportunities".
Shares in Cobham rallied on news of the new appointment,standing up 4.2 percent to 167 pence at 0818 GMT. Laird tradeddown 6.1 percent at 311 pence.
Lockwood has been Laird CEO for four years, overseeingaverage organic revenue growth at the company of 7 percent overthe last three years. Before that he worked for BT, GPT(Marconi), BAE Systems and Thales. He will leave Laird on Sept.5 and join Cobham no later than Jan. 1 2017.
After issuing a profit warning in April, Cobham this monthreported a 36 percent drop in first-half profit, leaving itneeding a big improvement in the coming months to meet full-yeartargets and sending its shares sharply lower.
The CEO appointment is not the only change in Cobham's topteam. New chief financial officer David Mellors is due tosucceed Simon Nicholls by the turn of the year.
Jefferies analyst Sandy Morris said making two major changescould be a cause for concern.
"With both CEO and CFO now leaving Cobham in the second halfof the year, we understand concerns about H2 guidance beingachieved," Morris said.
The firm faces execution risks on some of its big programmesin U.S. defence such as the KC-46 air-to-air refuelling system.
Cobham launched a 500-million-pound emergency rights issuein April after it was hit by delayed shipments in its CobhamWireless communications business and due to lower demand fromoil and mining customers for flight services in Australia.
Shares in Cobham have lost a third of their value so farthis year. They closed Tuesday at 160.3 pence, valuing thebusiness at 2.7 billion pounds ($3.52 billion).
Laird said it had appointed CFO Tony Quinlan to take overfrom Lockwood as chief executive on Sept. 5. The companymanufactures antennae, wireless products and other equipmentused in the automotive, healthcare and other sectors.
(Reporting by James Davey, additional reporting by Sarah Young;editing by Paul Sandle and Jason Neely)
