Cobham backs FY expectations as it makes progress on turnaround

FTSE 250 aerospace and defence group Cobham said on Wednesday that it performed as expected in the first 10 months of the year, as it backed its overall expectations for 2018.

In an update for the period from 1 January to the end of October, the company said it continues to make progress in executing its turnaround programme.

Underlying operating profit in Mission Systems and Communications and Connectivity has been stronger than in the previous year, offsetting weaker performances in Advanced Electronic Solutions and Aviation Services.

Meanwhile, on the KC-46 progamme, Cobham had delivered a total of 18 production standard Centerline Drogue Systems by the end of October. t said qualification of the wing aerial refuelling pods remains in its early stages with risks relating to schedule and cost. Discussions with Boeing have continued regarding its unquantified damages assertions and payment withhold, the company said.

"Overall, the board's expectations for the full year 2018 remain unchanged from those set out in the interim results on 3 August 2018. As in prior years, there remains significant trading activity in the final two months of the year."

At 0807 GMT, the shares were down 0.8% to 104.05p.