UK based defence and aerospace supplier Cobham expects revenue to decline by low-to-mid single digits in 2014, after having previously forecast modest growth. The group made the forecast in its interim management statement. Cobham cited the probability of deteriorating US budget conditions, which would have significant impact on the US defence market, as cause for the revision in revenue growth. The US market is responsible for over a third of the Cobham's revenue. (Release)
The company's full year outlook for 2013 remains in line with previous estimates, with an expected revenue decline of low-to-mid single digits. At the end of October 2013, Cobham had net debt of £530m.
However, the group believes that its position in the market will deliver positive results by 2015:
The Group has leading positions in its markets and innovative technology and know-how, which it can leverage across defence/security and commercial markets. It is making tangible progress against its strategic objectives, including placing considerable focus on further operational improvement and streamlining of the business through its EiD programme, and on bringing more balance to its portfolio. As a result, the Board continues to anticipate that the Group can deliver mid-single digit organic revenue growth from 2015.