Cobham launches 500 mln stg rights issue after profit warning

LONDON, April 26 (Reuters) - British engineering company Cobham (Other OTC: CBHMF - news) proposed a 500 million pounds ($724.80 million) rights issue to strengthen its balance sheet after profit plunged in its first quarter, pushing it to reduce its debt.

Cobham, which specialises in aerial refuelling equipment, said on Tuesday that it would start a cost-cutting programme after first quarter profit fell by 70 percent to 15 million pounds, impacted by delayed shipments and cost increases.

Across the full-year, Cobham said its profit would be hit by 15 million pounds, and it would rebase its dividend to pay out the same amount in 2016 as last year.

($1 = 0.6898 pounds) (Reporting by Sarah Young; editing by Kate Holton)