UPDATE: Chemring CEO Sees $150 Million In Additional Revenue In 2012

Chemring Group PLC's (CHG.LN) chief executive Thursday said he expected the munitions and countermeasures manufacturer to generate at least $150 million in additional revenue in 2012.

David Price told Dow Jones Newswires in an interview that the company expected to gain an extra $100 million in revenue with the GBP55.2 million acquisition of the detection systems operations of a unit of General Dynamics Corp. (GD). A further $50 million would come from a U.S. Army and Marine Corps contract to manufacture anti-personnel obstacle breaching systems, he added.

The contract is for three years and could be worth over $150 million. An anti-personnel obstacle breaching system is a self-contained, one-shot, expendable linear demolition charge capable of safely clearing a footpath through anti-personnel mines and multi-strand wire obstacles.

Price added that Chemring was focusing on establishing joint ventures in India and Brazil as it expanded its business beyond member countries of the North Atlantic Treaty Organization. It already has a presence in markets in the Middle East, such as Saudi Arabia, Kuwait and Egypt, and the Far East, including Malaysia, Singapore and Australia.

Chemring in its fiscal first half ended April 30 reported a rise in its business from non-NATO countries to 25% of revenue from 16% in the same period a year earlier. That came at a time when the U.S., the world's biggest spender on defense, and the U.K. were tightening their purse strings.

The company posted an 18% rise in organic revenue. Revenue jumped 29% year-on-year to GBP329.8 million.

Profit before tax, excluding acquisition-related costs, intangible amortization arising from business combinations and a gain on fair value movements on derivatives totaling GBP7.9 million, rose 17% year-on-year to GBP49.6 million.

Net debt fell to GBP198.1 million from GBP260.5 million, but that was largely to due a capital raising in April of GBP112.3 million that also funded the acquisition of the General Dynamics business.

Its order book was GBP988 million and Price said the board would be disappointed if it wasn't over GBP1 billion by the end of the fiscal year.

Summing up the performance, Price said: "We feel that is a pretty good start to the year."

However, investors weren't as impressed. At 1255 GMT, its shares traded down 34 pence, or 5.3%, at 603 pence, making it one of the biggest losers in the FTSE 250 index, which traded down 1.2%.

"The company has a lot to deliver in the second half to meet expectations. However, this (second-half) weighting is typical of Chemring and the board remains confident on delivery," said Evolution Securities analyst Guy Brown in a research note. He reiterated his buy recommendation and 790-pence price target.

-By Jonathan Buck, Dow Jones Newswires; +44 (0)207 842 9237; jonathan.buck@dowjones.com

Chemring (LSE:CHG)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024