Cobham wins massive contract

Aerospace company, Cobham, has won a huge US contract which will provide a platform for growth for the next 30 or 40 years.

The $35 billion (£17.64 billion) contract is to supply air-refuelling and other equipment for the US Air Force’s tanker project.

Airbus firm Eads and Northrop Grumman beat Boeing to the contract which has caused uproar among US politicians.

Cobham is part of the consortium is to supply the hoses and refuelling pods that connect with aircraft being refuelled, in a deal worth about $1 billion.

Some analysts fear the US political furore may delay the project but Allan Cook, Cobham’s chief executive, is confident it will go ahead as the aircraft his firm is involved in is simply the better option.

We believe it is the best platform, with the lowest risks and the most flexible. Cobham has developed this refuelling equipment over 50 years and we now supply 97% of air-to-air fuelling systems in the world, added Mr Cook.

Cobham already has contracts with the US Navy, Marine Corps and Air Force, concluded Mr Cook.

The company posted a 12.9% rise in pre-tax profits and said it was confident of achieving its growth targets for 2008 due to a strong order book and the healthy state of its markets.

The company said that it had made ‘sound progress‘ in the execution of its acquisition strategy since the start of 2007 and had agreed to buy 5 businesses for approximately $750 million. The acquisitions significantly enhanced the group’s presence in the US, which it said was worth 54% of its revenue last year.

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