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Cobham (LSE:COB) announced this morning that it had secured a $39 million contract with the US Navy. The announcement did not seem to affect Cobham’s share price on the LSE, as it remained fairly steady at 227.90. However, the stock has shown a gain of 26% since in the first 4 months of 2012.
The Contract
The contract represents the US military’s exercising of an option to extend a previously awarded contract under which a specified product will be sold at a firm, fixed price. Cobham will manufacture and supply 48 low band transmitters, 13 vertically polarize antennae, and 28 horizontally polarize antennae for use on US Naval and Marine Corps EA-6B and EA-18G electronic warfare aircraft.
Other Recent News
The contract award follows only four days after the company issued an Interim Management Statement and Board Update. In that release, the company announced the awarding of several other contracts and the status of their order book at £2.5 billion, as well as some changes at the board level. Those changes included the appointment of Robert Murphy as CEO and the departure of CFO Warren Tucker.
Corporate Comments
Vice President of Cobham Sensor Systems, Jill Kale noted that “Cobham’s Low Band Transmitter has a legacy of reliability and operational excellence. Activating this option to the fixed price contract is aligned with the Navy’s acquisition strategy, and capitalises on our expertise.”
Company Spotlight
Cobham is a leader in development, delivery, and support of sophisticated aerospace and defence systems in the air, on land, and at sea operating under three divisions: Aerospace and Security, Defence Systems, and Mission Systems. The company has delivered over 250 components for the International Space Station. Every Airbus 380 is equipped with Cobham antennas, servers, routers, oxygen systems and audio and radio management systems. The new Boeing 787 contains Cobham SATCOM and OBIGGS systems. The company employs over 10,000 people on 5 continents.
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