Morningstar | Cobham Updates on KC-46 Programme and Announces GBP 40 Million Cash Charge
Cobham, the most technically advanced supplier of aerial refueling systems, has announced completion of qualification testing of the Centerline Drogue System, or CDS, on the Boeing KC-46 tanker programme. The firm indicated that the certification process has started, as the Wing Aerial Refuelling Pods, or WARP, for the KC-46 have been delivered. Although we are happy with the progress on the challenging KC-46 programme, the increased cost to complete the development schedule would fall largely on Cobham’s shoulders, as Boeing is withholding payment for KC-46 CDS and WARP invoices. Cobham is disputing Boeing's assertions. The reduced profitability, which stems from the decreased recovery from customers of increased costs of GBP 40 million to complete fixed-price contracts, supports our no-moat rating for the firm. At this stage, we are revising our fair value estimate of GBX 130, and this development could result in a modest change to our fair value estimate. Cobham will publish its first-half 2018 result on Aug. 3, and the firm expects to announce no change to full-year 2018 profit guidance.Cobham provides technologies and services across its defense, aerospace and space markets. Co. has four sectors: Communications and Connectivity, which provides equipment and solutions to enable connectivity across a range of environments in aerospace, avionics, satellite and radio, wireless and mobile connectivity markets; Mission Systems, which provides safety and survival systems, aerial refueling systems and wing-tip to wing-tip mission systems; Advanced Electronic Solutions, which provides solutions for communication on land, sea, in the air and in space through off-the-shelf and customized products; and Aviation Services, which provides outsourced aviation services.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.