October 11, 2012 / 7:26 AM / 5 years ago

UPDATE 1-E2V Tech issues warning on defence slowdown

LONDON Oct 11 (Reuters) - Specialist technology provider e2v Technologies warned that it will miss its expectations for the year after an ongoing slowdown in the defence industry dented performance in the first half.

The group, which has provided parts for high profile projects like the Hubble Space Telescope, said that first half revenue will be around 90 million pounds ($144 million), compared to 115 million in the same period last year, but that it expected a pick up in the second half as previously delayed space and defence projects caught up.

“The business has responded well to the challenges in our end user markets and the delays experienced in order bookings,” said Chief Executive Keith Attwood on Thursday.

“The ongoing cost control, drawing on the flexible cost base we previously put in place and implementing further restructuring, has effectively maintained the profit margin of the business.”

The slowdown in the global defence market was one factor in the decision of BAE and EADS to halt their mega-merger on Wednesday. E2v provides parts for the Eurofighter Typhoon aircraft project, a joint venture between the two defence giants.

E2v’s total order book fell to 138 million pounds at end-September, down from 146 million a year ago.

Shares in e2v fell 4 percent to 115 pence at the open on Thursday.

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