Wed, Jul. 20, 5:40 PM
- The U.K. remains firmly committed to buying 138 Lockheed Martin (NYSE:LMT) F-35 jets in spite of currency fluctuations caused by last month’s Brexit vote, but is pressing the U.S. Department of Defense to wrap up negotiations over the next two contracts for the potential $15B purchase.
- U.K. Defense Secretary Fallon says he is "chomping at the bit to get on with” the contracts, which would include nine short-takeoff and vertical-landing aircraft, noting that there is no alternative aircraft that can operate off the country’s two new aircraft carriers being specially outfitted to launch and recover them.
- The Pentagon has been negotiating with LMT since last year over a ninth and 10th production contract; U.K.-based companies including BAE Systems (OTCPK:BAESF, OTCPK:BAESY) produce ~15% of each aircraft as part of work-share agreements.
- LMT said yesterday that it is negotiating final contract terms but that current funding is “insufficient to cover the production process," and that it has ~$900M of potential cash exposure and $3B in termination liability exposure related to the contracts.
Mon, Jul. 11, 12:30 PM
- The price of Lockheed Martin's (LMT +1.3%) F-35 fighter jet has dropped 57% as commercial sales ramp up, and "we're on a path to be down to a price of an $85M jet by 2019, which is comparable to a fourth generation aircraft," CEO Marillyn Hewson tells CNBC from the Farnborough air show.
- The CEO says LMT expects to sell 3,000 jets in coming decades, with production likely peaking at 170-180 planes/year around 2023, as countries around the world do not see global security challenges diminishing.
- Also, the U.S. Defense Department says it is extending by two years a project of cost-cutting initiatives for the Pentagon's costliest arms program, which includes an agreement by LMT and key suppliers Northrop Grumman (NOC +0.4%) and BAE Systems (OTCPK:BAESY +1.4%) to invest up to $250M in projects aimed at cutting the cost of operating and maintaining the jets, with a goal of saving $1B over five years.
- Shares earlier hit $256.32, an all-time high.
Wed, Jun. 22, 8:46 AM
- Space "is a new frontier," said Tom Arseneault, Chief Operating Officer of BAE Systems (OTCPK:BAESY). "It is an area where full-up electronic-warfare capability is of increasing interest."
- Protecting space systems from attack is now emerging as a growth opportunity for the company, particularly given the Pentagon’s worries about safeguarding some of its most sensitive spacecraft.
Tue, Jun. 21, 10:22 AM| Tue, Jun. 21, 10:22 AM
Mon, May 23, 3:21 AM
- President Obama kicked off his three-day visit to Vietnam with an announcement declaring the end of a U.S. arms embargo on the country, a ban that had been in place for decades.
- "We've come here as a symbol of the renewed ties....and the comprehensive partnership we have created over the course of my presidency," Obama said at a press conference.
- The trip will also see the nations discuss the Trans-Pacific Partnership, which is expected to usher in a new period of growth for export-oriented Vietnam.
- Related tickers: GD BA, NOC, LMT, RTN, OA, HII, HON, UTX, OTCPK:EADSF, ITT, TXT, LLL, OTCPK:BAESY, OTCPK:FINMY, COL
- ETFs: VNM
Wed, Mar. 30, 9:30 AM
- Drone Aviation (OTCQX:DRNE) has been awarded a contract to upgrade existing U.S. Government-owned Winch Aerostat Small Platform tactical aerostat systems from DoD prime contractor BAE Systems (OTCPK:BAESY).
- The contract, valued at $194K, will enable enhanced flight operations and greater payload flexibility.
Mon, Mar. 7, 5:17 PM
- The U.S. Air Force selects the Pratt & Whitney unit of United Technologies (NYSE:UTX) to build the engines for the Northrop Grumman's (NYSE:NOC) new $80B long-range strike bomber, while six other contractors are chosen to work on unspecified "airframe or mission systems."
- Analysts had expected Pratt & Whitney's selection as the engine supplier since the company already builds engines for the Lockheed-built F-35 combat jet.
- The other key suppliers are BAE Systems (OTCPK:BAESF, OTCPK:BAESY) and GKN (OTC:GKNCF), both based in the U.K., as well as Spirit AeroSystems (NYSE:SPR), Orbital ATK (NYSE:OA), Rockwell Collins (NYSE:COL) and Janicki Industries.
- NOC recently resumed work on developing the plane after Boeing and Lockheed dropped a protest when they lost the main contract.
Mon, Feb. 15, 5:00 AM
- BAE Systems (OTCPK:BAESY) has confirmed the appointment of oil-industry executive Charles Woodburn as chief operating officer, making him heir apparent to the company's long-standing Chief Executive Ian King.
- The U.K.'s biggest arms maker and a major Pentagon supplier had been exploring succession options for some time.
- Previously: BAE puts Woodburn on radar as next CEO (Feb. 14 2016)
Sun, Feb. 14, 9:47 AM
Tue, Feb. 2, 7:26 AM
- Reliance Steel's (NYSE:RS) subsidiary, AMI Metals, has been awarded a multi-year contract by BAE Systems (OTCPK:BAESY) to provide aluminum plate to support the requirements for the F-35, Hawk, and Typhoon programs.
- The five-year contract, with an estimated value of $100M, runs from Jan. 1, 2017 through Dec. 31, 2021, with the possibility of additional years.
Thu, Jan. 7, 9:12 AM
- BAE Systems (OTCPK:BAESY) has awarded PAR Tech's (NYSE:PAR) wholly-owned subsidiary, Rome Research Corporation, a subcontract valued at $12.9M.
- Under the deal, PAR will provide critical C4I and Strategic Communications throughout the Pacific theater and Indian Ocean for the DoD, National Security Agency, Missile Defense Agency, Homeland Security and allies.
Dec. 17, 2015, 10:31 AM
- The work awarded by the U.S. Navy, which will take place at BAE Systems' (OTCPK:BAESY) shipyard in San Francisco, California, is scheduled to begin next month.
- The scope of the contract includes dry docking, performing maintenance work on bow thrusters and propeller systems, working on its heating, ventilating, and air conditioning systems, and cleaning and painting.
Dec. 14, 2015, 7:36 AM
- The U.K. is considering nationalizing the nuclear submarine business of Rolls-Royce (OTCPK:RYCEY) - which powers its Trident missile deterrent - should the crisis at the engineering group deepen, FT reports.
- The government may also decide to merge some or all parts of Rolls Royce's businesses with BAE Systems (OTCPK:BAESY).
Dec. 3, 2015, 8:17 AM
- After meeting with BAE Systems (OTCPK:BAESY), RBC Capital believes that recent developments related to U.S. and U.K. defense spending bode well for the company.
- The firm is upbeat on demand for Typhoons by Kuwait and Saudi Arabia, and it has an overall positive view of the company's outlook.
Nov. 24, 2015, 8:10 PM
- The Marine Corps has given contracts for a first phase of a wheeled amphibious combat vehicle to Science Applications International (NYSE:SAIC) and to BAE Systems (OTCPK:BAESY).
- SAIC gets a contract for 13 vehicles valued at more than $121M, while BAE got a pact for 13 vehicles at almost $104M. The two beat out Lockheed Martin (NYSE:LMT), General Dynamics (NYSE:GD) and Advanced Defense Vehicle Systems.
- Lockheed Martin might protest the decision.
- The first phase of the vehicle is known as ACV 1.1, and it's eventually planned to be a modest replacement for a canceled program -- the Expeditionary Fighting Vehicle that General Dynamics was developing. The Marines had started a competition for the vehicle last year.
Nov. 16, 2015, 10:33 AM
- Aerospace and defense shares are on the rise after calls to increase efforts to crush ISIS, the terrorist group responsible for Friday's attacks in France.
- Previously: World leaders wrap up G20 summit (Nov. 16 2015)
- Previously: French warplanes strike Islamic State targets in Syria (Nov. 15 2015)
- Related tickers: General Dynamics (GD +0.6%), Boeing (BA +0.2%), Northrop Grumman (NOC +3.2%), Lockheed Martin (LMT +2.5%), Raytheon (RTN +2.4%), Orbital ATK (OA +3.8%), Rolls-Royce (OTCPK:RYCEY +2.2%), Huntington Ingalls (HII +1.1%), Honeywell (HON +0.9%), United Technologies (UTX +0.4%), Airbus (OTCPK:EADSF), ITT (ITT +0.6%), Textron (TXT +1.7%), L-3 Communications (LLL +2.3%), BAE Systems (OTCPK:BAESY +2%), Finmeccanica (OTCPK:FINMY), Rockwell Collins (COL +1.7%).
BAE Systems is a global defense, aerospace and security company with approximately 88,200 employees worldwide. The Group delivers a wide range of products and services for air, land, and naval forces, as well as advanced electronics,security, information technology solutions and support services.
Industry: Aerospace/Defense Products & Services
Country: United Kingdom
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