Cobham brushes off Asian fallout

Aerospace engineer Cobham’s interim figures came in at the top end of City forecasts last week despite some fallout from the Asian crisis. It produced pre-tax profits for the six months to the end of June of £30m, up from £24.9m last time. The company’s turnover was also up, from £151.1m to £176.7m. Cobham said […]

Aerospace engineer Cobham’s interim figures came in at the top end of City forecasts last week despite some fallout from the Asian crisis.

It produced pre-tax profits for the six months to the end of June of £30m, up from £24.9m last time.

The company’s turnover was also up, from £151.1m to £176.7m.

Cobham said it remained confident about the economic outlook despite some pressure from the Far East. The company revealed an advance order book worth a total of £722m.

Market difficulties had taken their toll on its avionics business, affecting both Westwind, its air bearing spindles subsidiary, and Continental Microwave.

Order cancellations and rescheduling had an adverse impact on Westwind, and Continental was stung by the loss of business associated with the Asian downturn, according to chairman Sir Michael Knight.

He said cancellations would amount to £4m of lost business this year.

‘It is not yet possible to forecast a return to more normal levels of business, but new products are being developed which show promise for the future,’ Knight added.

Manufacturing profits as a whole jumped from £11.2m to £19.8m, though the increase in avionics was more modest profits for the division climbed from £8.8m to £9.4m.