Following appeared in the Independent. 17.9.03. Reporter: Michael Harrison.

COBHAM REAPS WAR DIVIDEND AFTER IRAQ LIFTS PROFITS.

"Cobham,the flight refuelling to paveway laser-guided bomb contractor,yesterday declared
a war dividend as it reported record firtst half profits helped by rising sales to the
US military.
Pre-tax profits for the six months to the end of June rose 12percent to £47.7m on the
back of a 15% increase in orders for munitions such as Paveway and the Javelin missile,
both of which were used extensively in the war in Iraq.
News of the profits rise came as Cobham used up more of its war chest on the £40
acquisition of two more avionics businesses,taking its spending spree this year to £151m
on 11 different companies.
Allan Cook,its chief executive,said Cobham's rising military sales,which now account for
half of total turnover,would be more than enough to offset the current weakness in the
civil aviation market where the company does not expect a recovery until 2005.
He said:"I would hesitate to call it a war dividend but what we are continuing to see
is an increased level of orders and that is because the US defence budget is $400bn
(£252bn) not including the increase President (George)Bush is looking for to fund Iraq"
The new acquisitions are Sea Tel,a California-based manufacturer of commercial ship-board
antennas,which is being bought for $26m,and ERA technology,a Surrey based avionics
research and development and testing business,which Cobham is paying £25m for.
Mr Cook said Cobham would benefit from several recent defence orders,including Hawk
trainer aircraft being bought by the Ministry of Defence and India,NH90 helicopters for
Greece and the US small diameter bomb programme,won recently by Boeing.
The group has also picked up a £20m order to supply inra-red mssile counter-measures
to BAE systems for military applications.
----------------------------------------------------------------------------------------

Methinks we anti-arms traders wouldn't hesitate to call it a war-divided eh ?