Cobham warns of payment delay, backs outlook
Cobham PLC (COB.LN) said Thursday that Boeing Co. BA, -0.66% is withholding payment over the KC-46 aircraft refueling tanker program, which will also have higher-than-expected costs, but backed its underlying profit guidance for 2018.
The British aerospace-and-defense engineer said Boeing has made unquantified damages assertions related to the KC-46 program, which are being formally disputed by Cobham.
Furthermore, Cobham said it will book a 40 million-pound ($52.7 million) charge in the first half of 2018, as the program is taking longer than originally planned and this will risk the company’s base-cost assumptions.
However, Cobham said it doesn’t plan to change its full-year underlying profit guidance when it reports first-half earnings next week. The company is expected to deliver an underlying pretax profit of GBP147.1 million in 2018, according to a consensus based on estimates by ten analysts polled by FactSet.
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