BUSINESS NEWS
19 Dec 07. Cobham said 2007 has seen strong organic growth and trading profit will be ahead of 2006, despite adverse currency translation effects. The group said the performance of the Air Refuelling and Auxiliary Mission Equipment division has been exceptionally strong, with an upsurge in order intake in the second half of the year. Cobham intends to restructure into four divisions next year. The four divisions will be:
• Cobham Avionics and Surveillance
• Cobham Defence Electronics Systems
• Cobham Mission Systems
• Cobham Aviation Services
Cobham Defence Electronic Systems will absorb the military business of Cobham Antennas, while the latter’s commercial business will be integrated into Cobham Avionics & Surveillance.
The Cobham Mission Systems will comprise the current Life Support and Air Refuelling & Auxiliary Mission Equipment businesses and will focus on electro mechanical equipment.
Cobham Aviation Services is the new name for Cobham Flight Operations and Services and will have the responsibility for managing Cobham’s involvement in the FSTA programme.
The 2007 results will be reported in a way that reflects the proposed new structure. The group has a strong order book of about £1.7bn and a healthy balance sheet. The board remains confident the group is well positioned for continuing profitable growth. (Source: Google)
15 Dec 07. Japanese shipbuilder and heavy machinery maker IHI Corp. said its
net loss widened for the first half ended Sept. 30 compared with the year-ago period, due to ballooning costs at its energy and plant business. The company, which manufactures parts for engines including some used in Boeing Co. jetliners, reported a net loss of 37.26bn yen ($332m), compared with a year-earlier loss of 10.1bn yen. Group sales rose 5.6% to 546.40bn yen from 517.53bn yen. IHI in September cut its earnings outlook for this fiscal year ending March because it underestimated costs in its energy and plant business. Lax cost controls also prompted the company recently to restate its earnings for last fiscal year, pushing it into an operating loss. IHI said Friday that it had a net loss of 4.59bn yen for the year ended March, rather than the earlier reported 15.83bn yen profit. The restatement underscored problems with the firm’s cost controls, especially on overseas construction work, amid competition for orders. (Source: WSJ)