About Carleton Technologies, Inc.

Aerospace communications company Cobham plc can hold a conversation in space and in the depths of the ocean. Serving customers in more than a hundred countries, Cobham provides communication and connectivity technology for use in demanding environments like space, air, on land, in warzones and at sea. The company provides high-reliability electronics, antenna subsystems, satellite and radio, and media link-up. It also sells air-to-air refuelling systems, aircraft oxygen, cooling, and escape systems; and weapons carriage/release systems. Its aviation services provides maintenance, modification, and training services for military aircraft and crews.

Operations

Cobham operates four business units: Communications and Connectivity, Mission Systems, Advanced Electronic Solutions and Aviation Services.

The Communications and Connectivity segment, the largest of the four at over 35% of total sales, provides aircraft and communication equipment; satellite communication equipment for land, sea and air, and test and measurement instrumentation for radio frequency, cellular communications and wireless networking.

Mission Systems, which brings in around 20% of revenue, makes safety and survival systems for extreme environments, nose-to-tail aerial refuelling systems and wing-tip to wing-tip mission systems for fast jets, transport aircraft and rotorcraft. It also makes remote-controlled bomb disposal robots.

Advanced Electronic Solutions makes off-the-shelf and customized communication systems for land, at sea, air and space applications; products include radio frequency, microwave, and high reliability microelectronics, antenna subsystems and motion control solutions. This encompasses defense, wireless/mobile and fixed broadband, and X-ray imaging. The segment accounts for over a quarter total sales.

Aviation Services, representing around 20% of total sales, delivers outsourced military aviation training, outsourced commercial aviation, and fly-in-fly-out services to the natural resources industry and aircraft engineering.

Geographic Reach

UK-based Cobham rings up nearly half of its sales in the US, and has manufacturing operations in the UK, the US and continental Europe.

Sales and Marketing

Cobham serves markets such as defence, specialist aviation services, aerospace, wireless, and space. Its commercial market alone accounted for 38% of sales in fiscal 2015. US Defense/Security accounts for around 36% and non-US defense market accounts for over 25%.

Financial Performance

Note: Growth rates may differ after conversion to US Dollars.

In 2015, sales grew 12% on prior year to £2.0 billion due to the contribution of the acquired Aeroflex business, the operations of which have been spread across Advanced Electronics and Communications and Connectivity. Both segments saw negative organic growth, however.

Net income fell again, down £67 million to £37.8 million as a result of an increase in administration costs relating to the Aeroflex deal. Cash from operating activities was up 13% to £189.1 million.

Strategy

Cobham is balancing its commercial and military activities after an over-reliance on military-related sales emerged. The group is now targeting technologies that has applications in both fields, and to that end in 2014 it acquired US specialist communications equipment firm Aeroflex. However, the deal has so far been more trouble that it's worth after Asian demand stalled for the formerly Aeroflex's wireless products, and the company was hurt by difficulties in oil and gas industries.

In 2015, Cobham hived off its to advanced composites business to UK firm Meggitt for $200 million.

Mergers and Acquisitions

Cobham acquired US specialist communications equipment firm Aeroflex in 2014 for $1.5 billion, the largest acquisition in the company's history by a significant margin. The acquisition is hoped to diversify Cobham's customer base and product suite.

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Carleton Technologies, Inc.

10 Cobham Dr
Orchard Park, NY 14127-4195
Phone: 1 (716) 662-0006
Fax: 1 (716) 662-0747

Stats

  • Employer Type: Public
  • Pres: Kelly Coffield
  • Director Biological Sciences: Carrie Doonan
  • Assistant Vice President for Marketing: Marilyn Kail
  • Employees: 815

Major Office Locations

  • Orchard Park, NY