Ultra Electronics 1H Pretax Profit Down On Items, Orders Up

2nd Aug 2010 07:21

LONDON (Dow Jones)--Defense electronics company Ultra Electronics Holdings PLC (ULE.LN) Monday reported a 43% decline in first-half pretax profit, after gains on derivatives a year earlier weren't repeated, and said orders at June 30 were 8% higher than a year earlier at GBP832 million. Ultra said it expects spending on electronics to continue despite a squeeze on defense budgets. The company, which makes sonar systems for submarines and computer systems for unmanned aerial drones, raised its dividend 10% to 10.6 pence a share. Ultra Electronics reported a pretax profit of GBP35.7 million for the six months to June 30, compared with a profit of GBP62.9 million a year earlier. Revenue increased 7.8% to GBP350.9 million. Higher revenue from the company's information and power systems unit and its tactical and sonar systems business offset lower revenue at its aircraft and vehicle systems division. Earnings were weighed down by amortization charges following an acquisition. The previous year's earnings including GBP48.4 million of gains from derivatives. Excluding these and some other items, pretax profit increased 18% to GBP47.6 million from GBP40.2 million a year earlier. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [email protected] Order free Annual Report for Ultra Electronics Holdings plc Visit http://djnweurope.ar.wilink.com/?ticker=GB0009123323 or call +44 (0)208 391 6028 (END) Dow Jones Newswires August 02, 2010 02:21 ET (06:21 GMT)