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Aerospace

Cobham keeps full-year guidance in place; updates on Boeing dispute

Delays to Cobham’s KC-46 aerial refuelling programme with Boeing has seen the two firms fall out, with the latter withholding payment

Shares in Cobham PLC (LON:COB) headed lower after the defence and aerospace engineer told investors of the “weaker performances” in its Advanced Electronic Solutions and Aviation Services divisions.

But the FTSE 250 group left its full-year guidance in place, with improved trading in the Missions Systems and Communications and Connectivity businesses offsetting the struggles in the other two divisions.

READ: Cobham's KC-46 tanker programme gets messy

Cobham did caveat that by saying there “remains significant trading activity” in the final two months of the year.

The company also updated on its troubled KC-46 aerial refuelling programme with Boeing, delays to which have strained ties between the two firms.

Discussions are ongoing between Cobham and Boeing over the latter’s “unquantified damages assertions and payment withhold”.

Still, Cobham delivered 18 Centerline Drone Systems by the end of October, although the qualification of its Wing Air Refuelling Pods remains in its early stages with risks relating to schedule and cost.

Cobham shares were down 1.1% to 103.7p on Wednesday morning.