Profits at Cobham (LSE: COB) dip 4%, but raised dividend provides solace.
Cobham plc (LSE: COB) -- the aerospace and defence systems company -- is currently down 4% following the release of disappointing half-year results.
Revenues were 5% lower at £843 million from £892 million, with a 21% decrease in order intake, which was down to £768 million from £969 million. Underlying pre-tax profits dipped 4% to £142 million, compared to 2011's £149 million.
Underlying earnings per share, however, grew by 9%, underpinned by a share buy-back and lower tax rate. In addition, Cobham increased its interim dividend by 33% to 2.4p per share.
Bob Murphy, Cobham chief executive, said:
"We have made progress in the first half delivering organic revenue growth, earnings per share up 9% and a further step in rebalancing the portfolio towards our commercial markets."
"We remain positive on the outlook for our commercial and non US defence/security businesses which now represent 60% of revenue. The outlook for the US defence/security market for the end of 2012 and 2013 is particularly uncertain due to the upcoming US elections and the lack of political consensus on US Government budgets."
"Given the uncertainties referred to we are approaching 2013 with caution and building flexibility into the operating model including preparations for appropriate cost management in response to differing US Government budgetary outcomes."
The poor results mean that Cobham's share price continues its choppy progress -- up almost 38% from its end-of-2011 low of 167p, but down almost 17% on its April 2010 high of 275p.
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> Jon Wallis doesn't own shares in Cobham.