LONDON, April 26 (Reuters) - British engineering companyCobham proposed a 500 million pounds ($724.80 million)rights issue to strengthen its balance sheet after profitplunged in its first quarter, pushing it to reduce its debt.
Cobham, which specialises in aerial refuelling equipment,said on Tuesday that it would start a cost-cutting programmeafter first quarter profit fell by 70 percent to 15 millionpounds, impacted by delayed shipments and cost increases.
Across the full-year, Cobham said its profit would be hit by15 million pounds, and it would rebase its dividend to pay outthe same amount in 2016 as last year.
($1 = 0.6898 pounds) (Reporting by Sarah Young; editing by Kate Holton)
