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BUSINESS NEWS

24 Nov 08. GKN on Monday issued its second profit warning in four weeks, predicting that annual profits could now be as much as 40 per cent lower because of significant cutbacks in production among global carmakers. The automotive and aerospace-parts supplier, which makes drivetrains for cars and generates two thirds of its revenues from the sector, said it expected annual pre-tax profits to fall within a range of £150m to £170m, down from £255m last year. Performance at the higher end was “largely dependent on no further reductions in automotive schedules”. (Source: FT.com)

24 Nov 08. L-3 Communications (NYSE: LLL) has entered into an agreement to acquire Chesapeake Sciences Corporation (CSC). Terms were not disclosed. CSC is a developer and manufacturer of anti-submarine warfare (ASW) systems based in Millersville, Md. The business is expected to generate approximately $70m of sales for the year ending December 31, 2009. The acquisition is anticipated to be completed by March 2009, subject to standard regulatory approvals, and to be accretive to L-3’s 2009 earnings. CSC is a high technology company that specializes in the development, test and integration of towed sonar arrays for use onboard submarines and surface ship combatants. The unit complements L-3’s current product line of undersea and airborne acoustic sensors, sonar systems and mine warfare systems and expands the company’s ASW capability. “CSC’s demonstrated ability to deliver advanced sensor systems involving telemetry, signal processing and ocean sciences is impressive and will be a welcome addition to L-3’s portfolio of undersea products,” said Steve Kantor, president of the Marine and Power Systems Group. (Source: ASD Network)

26 Nov 08. QinetiQ Group plc Interim Results Announcement Six months ended 30 September 2008. Financial Highlights:
Good first half performance with Group revenue up 13.9% to £727.4m (2007: £638.8m) and organic growth[*1] of 8.6%;
Underlying operating profit up 19.8% to £55.1m (2007: £46.0m);
Underlying profit before tax up 22.1% to £45.9m (2007: £37.6m);
Profit before tax up 41.3% to £36.6m (2007: £25.9m);
Strong underlying operating cash conversion of 125% (2007: 159%);
Net cash flow from operations before reorganisation costs of £89.2m (2007: £90.9m);
Underlying earnings per share increased 20.7% to 5.6p (2007: 4.6p per share);
Basic earnings per share up 28.6% to 4.3p (2007:3.4p per share); and
Interim dividend per share increased 12.8% to 1.50p (2007:1.33p) [*1] Organic growth is calculated at constant foreign exchange rates, adjusting the comparatives to incorporate the results of acquired entities for the same duration of ownership as the current period. See Glossary section on page 28 for definitions of Non GAAP terms used throughout this statement. Underlying financial measures are presented as the Board believes these provide a better representation of the Group’s long-term performance trends. Commenting on the results, Graham Love, Chief Executive Officer, said: “The Group produced a strong performance in the first six months, reflecting the broad strength and resilience of our operations. Our North American operations performed well with 19% organic revenue growth, and following its reorganisation, our EMEA business is better focused with a lower cost base. We remain well placed in areas expected to be key priorities of the new US Administration and expect continued double digit growth in QNA into the medium term. In the UK we are both well positioned through our technology insertion expertise to respond to changing customer demand and to continue to support existing military operations. In addition our business is underpinned by a number of long term managed service contracts. There remains a strong pipeline of acquisition opportunities and we will be selective in pursuing those that complement and grow our capabilities and provide access to new markets. We plan to undertake the disposal of

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