Cobham cuts profit guidance as satellite and wireless lag

(ShareCast News) - Softer conditions in the wireless and satellite communications (satcom) markets have led Cobham to issue a profit warning.Although management expects an improvement in the fourth quarter, it said the overall full year outcome was likely to be below its initial estimates and cut its trading profit guidance to £255-275m, which includes favourable currency impacts. Cobham said demand for maritime satcom products "continued to be subdued" and that the new management team in wireless was making "good progress" but at a slower pace than expected, with some revenue being deferred and higher costs. There were also some extra costs and deferred revenue in the Integrated Electronic Solutions unit, which have stemmed from previously reported technical issues on a small number of space related development programmes. "However, these have largely been resolved in the third quarter," the company said.With chief executive Bob Murphy having stepped down in August, the FTSE 250 company, which brought its trading statement forward from Wednesday due to the disappointing news, assured that new CEO David Lockwood would have his feet under the desk "no later than 1 January", with the same said for new finance chief David Mellors.-- More to follow --