COB Cobham Plc

By Tapan Panchal

LONDON--Cobham PLC (COB.LN) Thursday said it will raise 500 million pounds ($617.36 million) via a rights issue as the embattled defense contractor posted a sharp drop in 2016 adjusted operating profit.

The maker of air-to-air refueling systems for Boeing Co. (BA) and Airbus Group SE's (AIR.FR) military tanker planes said it expects to complete its fully underwritten rights issue during the second quarter of 2017. In June 2016, it raised GBP506.7 million via a discounted share issue.

The second rights issue in less than a year comes after the company issued a series of profit warnings due to setbacks on its military programs. Adjusted operating profit for the year ended Dec. 31, 2016, fell to GBP225 million from GBP332 million in the year ago period. In February, Cobham said underlying operating profit would total GBP225 million for 2016, down from previous estimates of between GBP255 million and GBP275 million, due to recognition of additional costs and charges.

Full-year reported loss before tax totaled GBP847.9 million, versus a pretax loss of GBP39.8 million in 2015, on a revenue of GBP1.94 billion and GBP2.07 billion, respectively.

Cobham said it has suspended its final dividend payment for 2016 and doesn't intend to declare a dividend in 2017.

Write to Tapan Panchal at tapan.panchal@wsj.com

(END) Dow Jones Newswires

March 02, 2017 03:07 ET (08:07 GMT)

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