Tag: defense (Page 21 of 22)

Boeing and Safran Announce Initium Aerospace APU Joint Venture

February 14, 2019 / WIL BALDWIN

CHICAGO and PARIS, Feb. 13, 2019 /PRNewswire/ — Boeing [NYSE: BA] and Safran [EPA: SAF] today announce the name of their 50-50 joint venture to design, build and service Auxiliary Power Units (APUs): Initium Aerospace.

From its Latin roots, initium means ‘the beginning’ or ‘to start.’ This is what an APU is and does when it provides the power to start the main aircraft engines and systems on the ground and, if necessary, in flight. Initium Aerospace starts with Boeing’s customer and airplane knowledge and Safran’s experience designing and producing complex propulsion systems.

“This is an exciting milestone as we bring together the best of both companies to design and build an advanced APU that will create more lifecycle value for our customers,” said Stan Deal, president and CEO, Boeing Global Services. “This is further proof that Boeing is making strategic investments that strengthen our vertical capabilities and continue to expand our services portfolio.”

The creation of Initium Aerospace follows the regulatory and antitrust approvals the joint venture received last November, after an agreement was reached in June.

“I would like to congratulate everybody at Boeing and Safran who contributed to the creation of this new joint venture,” said Philippe Petitcolin, CEO of Safran. “Initium Aerospace is swiftly capitalizing on the vast expertise of both partners to provide state-of-the-art APUs and innovative solutions to customers. Safran is proud and totally invested in supporting Boeing’s growth and operators expectations. We look forward to presenting the first demonstrator engine to the market.”

The initial team consists of employees from the two parent companies and is led by Etienne Boisseau, CEO of Initium Aerospace. Initial work is being done in San Diego, California, where they are focused on the next-generation APU design as well as collaborating with teams across Boeing and Safran on engineering and production.

Safran is an international high-technology group, operating in the aircraft propulsion and equipment, space and defense markets. Safran has a global presence, with more than 58,000 employees and sales of 16.5 billion euros in 2017. Working alone or in partnership, Safran holds world or European leadership positions in its core markets. Safran undertakes Research & Development programs to meet fast-changing market requirements, with total R&D expenditures of around 1.4 billion euros in 2017. Safran is listed on the Euronext Paris stock exchange, and is part of the CAC 40 and Euro Stoxx 50 indices.

In February 2018, Safran took control of Zodiac Aerospace, significantly expanding its aircraft equipment activities. Zodiac Aerospace has 32,500 employees and generated sales of 5.1 billion euros for its fiscal year ended August 31, 2017.

Boeing is the world’s largest aerospace company and leading manufacturer of commercial airplanes and defense, space and security systems. Boeing is also the world leader in combined commercial airlines and government services with customers in more than 150 countries. The company’s products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training. Boeing employs approximately 150,000 people across the United States and in more than 65 countries.

Forward-Looking Information Is Subject to Risk and Uncertainty

Certain statements in this release may be “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the expected timetable for completing the transaction, future business prospects, and benefits and synergies of the transaction, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on current assumptions about future events that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially from these forward-looking statements. As a result, these statements speak only as of the date they are made and we undertake no obligation to update or revise any forward-looking statement, except as required by law. Specific factors that could cause actual results to differ materially from these forward-looking statements include the effect of global economic conditions, the ability of the parties to consummate the transaction and receive antitrust clearance, and other important factors disclosed previously and from time to time in reports filed by Boeing and Safran with their respective agencies.

Story and images from http://www.boeing.com/

Embraer and Sierra Nevada Awarded Contract to Deliver 12 A-29s for the Nigerian Air Force

February 6, 2019 / WIL BALDWIN

São Paulo, Brazil, February 6th, 2019 – Embraer Defense & Security and its partner Sierra Nevada Corporation (SNC) were awarded a contract to deliver 12 A-29 Super Tucano light attack aircraft to the Nigerian Air Force.

“SNC is proud to work with our partner, Embraer Defense & Security, to build A-29s in support of the Nigerian Air Force in addressing their on-going training and security needs,” said Taco Gilbert, Senior Vice President of ISR, Aviation and Security (IAS) at SNC. “The combat-proven A-29 is designed and built for the mission in Nigeria. It’s the most reliable and cost-effective solution for basic and advanced flight and combat training, close air support operations, ISR (Intelligence, Surveillance, and Reconnaissance), counterinsurgency and irregular warfare scenarios.”

“The A-29 Super Tucano has become the global reference for light attack and advanced training with a proven track record in several combat zones around the world”, said Jackson Schneider, President and CEO of Embraer Defense & Security. “Embraer welcomes Nigeria as the latest member of this true international coalition that is helping bring peace to the world.” The A-29 is conducting combat missions on a daily basis in theaters around the world. It has more than 46,000 combat hours and more than 360,000 total flight hours. With the Nigeria order, the A-29 is the choice of 14 air forces worldwide.

In addition to its combat record, the A-29’s robust landing gear and enhanced clearance enable take-off and landing in even the most austere field conditions. The aircraft also offers exceptional dependability and accuracy in weapons delivery, making it highly effective in the light attack role.

The contract for the Nigerian Air Force includes ground training devices, mission planning systems, mission debrief systems, spares, ground support equipment, alternate mission equipment, contiguous U.S. interim contractor support, outside of continental U.S. (OCONUS) contractor logistic support and field service representatives for OCONUS support.

The aircraft will be produced in Jacksonville, Florida, and modified in Centennial, Colorado. The aircraft are expected to be delivered to Nigeria in line with the contract timelines, as part of a larger more comprehensive training and support package.

To learn more about the A-29, go to http://BuiltForTheMission.com

Story and image from http://www.embraer.com

Boeing Autonomous Air Vehicle Completes First Flight

January 23, 2019 / WIL BALDWIN

Boeing NeXt program tests prototype to advance safety and technology of urban air mobilityElectric vertical takeoff and landing vehicle has design range of up to 50 miles

MANASSAS, Va., Jan. 23, 2019 /PRNewswire/ –Boeing [NYSE: BA] yesterday successfully completed the first test flight of its autonomous passenger air vehicle (PAV) prototype in Manassas, Virginia. Boeing NeXt, which leads the company’s urban air mobility efforts, utilized Boeing subsidiary Aurora Flight Sciences to design and develop the electric vertical takeoff and landing (eVTOL) aircraft and will continue testing to advance the safety and reliability of on-demand autonomous air transportation.

The PAV prototype completed a controlled takeoff, hover and landing during the flight, which tested the vehicle’s autonomous functions and ground control systems. Future flights will test forward, wing-borne flight, as well as the transition phase between vertical and forward-flight modes. This transition phase is typically the most significant engineering challenge for any high-speed VTOL aircraft.

“In one year, we have progressed from a conceptual design to a flying prototype,” said Boeing Chief Technology Officer Greg Hyslop. “Boeing’s expertise and innovation have been critical in developing aviation as the world’s safest and most efficient form of transportation, and we will continue to lead with a safe, innovative and responsible approach to new mobility solutions.”

Powered by an electric propulsion system, the PAV prototype is designed for fully autonomous flight from takeoff to landing, with a range of up to 50 miles (80.47 kilometers). Measuring 30 feet (9.14 meters) long and 28 feet (8.53 meters) wide, its advanced airframe integrates the propulsion and wing systems to achieve efficient hover and forward flight.

“This is what revolution looks like, and it’s because of autonomy,” said John Langford, president and chief executive officer of Aurora Flight Sciences. “Certifiable autonomy is going to make quiet, clean and safe urban air mobility possible.”

The test flight represents the latest milestone for Boeing NeXt. The division works with regulatory agencies and industry partners to lead the responsible introduction of a new mobility ecosystem and ensure a future where autonomous and piloted air vehicles safely coexist. In addition to the PAV, the Boeing NeXt portfolio includes an unmanned fully electric cargo air vehicle (CAV) designed to transport up to 500 pounds (226.80 kilograms) and other urban, regional and global mobility platforms. The CAV completed its first indoor flight last year and will transition to outdoor flight testing in 2019.

“Boeing was there when the aviation industry was born and in our second century, we will unlock the potential of the urban air mobility market,” said Steve Nordlund, vice president and general manager of Boeing NeXt. “From building air vehicles to airspace integration, we will usher in a future of safe, low-stress mobility in cities and regions around the world.”

Boeing is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in more than 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training.

Story and image from http://www.boeing.com

Bell Boeing Awarded $144 Million for V-22 Support

January 22, 2019 / WIL BALDWIN

Contract adds support for U.S. Navy CMV-22B variant to existing U.S. Air Force and U.S. Marine Corps customers

Contract expands and advances work that Bell Boeing has performed since 2008

PHILADELPHIA, Jan. 18, 2019 – The Bell Boeing Joint Program Office has been awarded an estimated $143,863,184 firm-fixed-price requirements contract for performance-based logistics and engineering support for the V-22 platform. This is an 11-month base contract with four one-year option periods. Locations of performance are Texas and Pennsylvania for V-22 aircraft belonging to the U.S. Navy, U.S. Air Force and U.S. Marine Corps. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania.

“As one of the most in-demand assets for the U.S. military, the V-22 needs a support team that understands the technical aspects of the aircraft as well as customers’ operational needs,” said Pat Walsh, retired Admiral and Boeing vice president for U.S. Navy and Marine Corps Services. “Bell Boeing is excited to bring our OEM expertise to the V-22 fleet and deliver solutions that help ensure the aircraft are ready for any mission.”

In July, Bell Boeing received a $4 billion contract that included the manufacture and delivery of 39 CMV-22B aircraft for the Navy; 14 MV-22B aircraft for the Marine Corps; and one CV-22B for the Air Force.

Under this performance-based logistics (PBL) contract, which expands on work done since 2008 and now adds support for the Navy’s CMV-22B variant, Bell Boeing will focus on improving aircraft maintainability and mission readiness for the Navy, Air Force and Marine Corps V-22 fleets. The team’s responsibilities include site activation, maintenance planning, training and trainer support, support equipment, and dedicated field personnel for all V-22 squadrons around the globe. Bell Boeing incorporates data analytics into maintenance efforts, yielding innovative approaches such as predictive and condition-based maintenance to improve aircraft availability and readiness.

”The Bell Boeing team is dedicated to providing the safest and most reliable aircraft to the warfighter,” said Chris Gehler, Bell Vice President for the V-22 Program. “We will continue to produce innovative solutions and deliver technical expertise, training, and maintenance to enhance readiness.”

Operating as one of Boeing’s three business units, Global Services is headquartered in the Dallas area. For more information, visit www.boeing.com/services.

Embraer Presents Preliminary Forecast for 2019 and 2020

January 17, 2019 / WIL BALDWIN

São José dos Campos, Brazil, January 16, 2019 – Embraer today presents its preliminary forecast for 2019 and 2020 at a meeting with investors at the New York Stock Exchange (NYSE). For 2019, Embraer expects to deliver between 85 and 95 commercial jets, 90 to 110 executive jets, including light and large jets, 10 A-29 Super Tucano aircraft and two multi-mission KC390 aircraft. Total consolidated revenues should be between US$ 5.3 billion and US$ 5.7 billion.

The Company expects to achieve a consolidated EBIT margin of breakeven (approximately zero) for the year 2019. It is important to highlight that 2019 guidance includes potential costs and expenses associated with the creation of the Commercial Aviation JV in a strategic partnership between the Company and The Boeing Co. (“Boeing”) under the terms of the associated material facts published by Embraer.

With the finalization and closure of the partnership operation described above, tentatively expected to occur by the end of 2019, Embraer anticipates a capital structure without leverage, with a net cash position of approximately US$ 1.0 billion after the payment of a special dividend to shareholders of roughly US$ 1.6 billion (which remains subject to the confirmation of certain requirements, including the fiscal year results).

During the event in New York, Embraer also presents its guidance for the year 2020, the first year after the potential closure of the operation creating the strategic partnership between Embraer and Boeing in Commercial Aviation, as mentioned above. The guidance presented for 2020 includes 100% of the expected results of the Executive Jets and Defense & Security segments (and the results of their respective services and support businesses) and exclude expected financial results coming from the 20% stake Embraer will have in the Commercial Aviation JV in partnership with Boeing.

Embraer expects to have net revenues of between US$ 2.5 billion and US$ 2.8 billion, EBIT margin of between 2% and 5% and roughly breakeven free cash flow for the year 2020.

2018 Estimates Revision Embraer is revising its 2018 guidance for executive jet deliveries, Revenues, Executive Jet revenues, Defense & Security revenues, consolidated and adjusted EBIT, consolidated and adjusted EBIT margin, consolidated and adjusted EBITDA, consolidated and adjusted EBITDA margin, Free Cash Flow and Investments.

Global market conditions for executive jets, although gradually improving, continue to recover more slowly than expected. In combination, Embraer’s increased focus on improving profitability and price preservation, as well as the recent launch of the new midsize/super midsize executive jets (“Praetors”), which will begin delivering in 2019, led the Company to adopt a more cautious approach towards deliveries in 2018. As a result, Embraer delivered 91 total executive jets in 2018 (compared to guidance of 105-125 jets previously).

As a result of the reduction in executive jet deliveries, the Company now expects revenues in the executive jets segment to be approximately US$ 1.1 billion (previously US$ 1.35 billion – US$ 1.50 billion). In addition, the cost base revision for the KC-390 contract in the second quarter of 2018, resulting from the incident involving prototype 001 in May 2018, negatively impacted revenues for the Defense & Security segment. This impact led to a new projection for revenues for the segment, of approximately US$ 0.6 billion (US$ 0.8 billion – US$ 0.9 billion previously). As a result, Embraer’s consolidated revenues for 2018 are now expected to be approximately US$ 5.1 billion, a reduction from the previous range of US$ 5.4 billion – US$ 5.9 billion.

Guidance for consolidated and adjusted EBIT, consolidated and adjusted EBIT margin, consolidated and adjusted EBITDA, and consolidated and adjusted EBITDA margin for 2018 were lowered due largely to lower fixed cost dilution of the Company as a function of lower executive jet volumes and a decline in Defense & Security revenues. The adjusted values for 2018 exclude the impact of US$ 127.2 million related to the cost base revision of the KC-390 contract in the second quarter of 2018, following the incident involving prototype 001 in May 2018.

Embraer also estimates that its spending on investments for 2018 will be roughly US$ 300 million, below its previous expectation for a total of US$ 550 million. It is important to note that the lower spending on investments has not negatively impacted the Company’s ongoing development projects.

As a result of the lower executive jet deliveries, partially offset by the lower spending on investments in 2018, the Company expects that 2018 Free cash flow will be a use of cash of roughly US$ 200 million (versus a use of no more than US$ 100 million in its previous guidance).

Story and Images from http://www.embraer.com

U.S. Air Force Accepts First Boeing KC-46A Pegasus Tanker

January 11, 2019 / WIL BALDWIN

SEATTLE, Jan. 10, 2019 – The U.S. Air Force has accepted the first Boeing [NYSE: BA] KC-46A Pegasus tanker aircraft, setting the stage for the aircraft’s delivery to McConnell Air Force Base, in Wichita, Kan., in the coming weeks.

“The KC-46A is a proven, safe, multi-mission aircraft that will transform aerial refueling and mobility operations for decades to come. We look forward to working with the Air Force, and the Navy, during their initial operational test and evaluation of the KC-46, as we further demonstrate the operational capabilities of this next-generation aircraft across refueling, mobility and combat weapons systems missions,” said Leanne Caret, president and CEO of Boeing Defense, Space & Security. “I want to thank the men and women of the Air Force and across the Boeing tanker team who made this happen.”

During extensive flight testing, six KC-46 completed more than 3,800 flight hours and offloaded more than four million pounds of fuel to A-10, B-52, C-17, KC-10, KC-135, KC-46, F-15E, F-16 and F/A-18 aircraft. The Pegasus has been rigorously tested throughout all aspects of the refueling envelope and in all conditions, including day, night and covert.

With the signing of what’s known as the DD250 paperwork, the delivery activities can proceed. McConnell Air Force Base will receive the first four KC-46 aircraft, all of which are ready for delivery, with four subsequent aircraft destined for Oklahoma’s Altus Air Force Base, beginning as early as next month.

Boeing is on contract for 52 of an expected 179 tankers for the Air Force. Beyond the first aircraft that was accepted today, nine aircraft are undergoing customer acceptance testing with the remaining aircraft of the contracted amount in production.

“This is an exciting and historic day for the Air Force and Boeing, as we hand over the first of many KC-46 tankers,” said Boeing Chairman, President and CEO Dennis Muilenburg. “I’m proud of the dedication and commitment by our enterprise-wide team, and we’re honored to provide this valuable and capable aircraft to our customer. We look forward to continuing to build and support the KC-46 for the Air Force—and other customers across the globe—for decades to come.”

The KC-46, derived from Boeing’s commercial 767 airframe, is built in Boeing’s Everett, Wash., facility.

For more information on Defense, Space & Security, visit www.boeing.com. Follow us on Twitter: @BoeingDefense and @BoeingSpace.

Story and image from http://www.boeing.com

Lockheed Martin Lands $22.7 Billion 255-Jet Fighter Order

November 19, 2018 / WIL BALDWIN

Let the shareholders rejoice: Lockheed Martin‘s (NYSE: LMT) F-35 Lightning II fighter jet contracts are getting bigger — and bigger.

In September, Reuters reported on a Pentagon deal to buy what it called at the time “the biggest batch yet” of Lockheed Martin’s joint strike fighter – 141 fighter jets valued at $11.5 billion. To win such a big order, Lockheed lowered its average F-35 cost to $81.6 million. With engine and other incidental costs factored in, flyaway costs were a bit higher. Lockheed’s F-35B variant flyaway cost $115.5 million, its F-35C cost $107.7 million, and the F-35A ended up at $89 million. Still, as Lockheed noted at the time, this contract offered the “lowest per-aircraft price in program history,” which undoubtedly helped Lockheed seal the deal.

Big as that sale was, however, the contract Lockheed just won easily eclipses it.

Click the link below for the full story!

Lockheed Martin Lands 255-Jet Fighter Order

Image from lockheedmartin.com

Israel & Boeing Sign Reciprocal Spending Deal

October 30, 2018 / WIL BALDWIN

JERUSALEM (Reuters) – Boeing (BA.N) has agreed to spend billions of dollars in Israel over the coming decade if it wins major defense contracts, Israel’s Economy Ministry said on Tuesday.

The “reciprocal procurement” agreement calls for Boeing to collaborate with Israeli industries for at least 35 percent of the value of any transaction it signs with the Israeli government.

This could ease concerns in Israel over new requirements in a U.S. aid package that divert funds away from local industries.

Boeing is competing in Israel for a number of key Defence Ministry contracts, including the purchase of additional F-15 aircraft, fueling planes and a squadron of transport helicopters, the ministry said.

With Israel expecting to make about $10 billion of military purchases from Boeing over the next decade, the agreement with the U.S. aerospace company means $3.5 billion in new business in Israel, the ministry said in a statement.

“A reciprocal procurement agreement of this magnitude is a significant achievement that will lead to the growth of many companies in the economy, increase their activity and also their success in international markets,” said Economy Minister Eli Cohen.

Under a defense aid deal signed in 2016 by Israeli Prime Minister Benjamin Netanyahu and then U.S. President Barack Obama, the United States agreed to provide Israel with $38 billion in military assistance over 10 years.

However, one component of the deal was to phase out a special arrangement that had allowed Israel to use 26.3 percent of the U.S. aid on its own defense industry instead of on American-made weapons. All the aid will now have to be spent on U.S. equipment by 2026.

(Reporting by Ari Rabinovitch; Editing by Adrian Croft)

New Brazil President Bolsonaro OK With Embraer-Boeing Deal

October 29, 2018 / WIL BALDWIN

RIO DE JANEIRO, Oct 29 (Reuters) – Brazilian President-elect Jair Bolsonaro has a positive view of a proposed commercial aviation partnership between Boeing Co and local aircraft maker Embraer SA, Bolsonaro’s choice for defense minister told Reuters on Monday.

Former General Augusto Heleno said the deal could be cleared by the current administration of President Michel Temer, although Bolsonaro’s team would like to see details of the proposed joint venture.

“It’s not that the government is leaving and so it cannot take any action,” Heleno said, referring to the outgoing Temer administration. “If we had a conversation and we reached a conclusion, ‘Look, everything’s good, this is worth it,’ we don’t have to keep waiting,” Heleno said.

Embraer reached a preliminary agreement in July to sell 80 percent of its commercial jet division to Boeing in a venture valued at $4.75 billion. The deal has not closed yet, in part because Brazil’s government holds a “golden share” that grants it veto power over strategic business decisions at Embraer.

Last week, the current defense minister, Joaquim Silva e Luna, told Reuters that Brazil’s next president would be presented with the details of the deal.

(Reporting by Rodrigo Viga Gaier and Ricardo Brito Writing by Marcelo Rochabrun; Editing by Steve Orlofsky)

Image from www.embraer.com

General Dynamics Tops Profit Estimates

October 24, 2018 / WIL BALDWIN

Oct 24 (Reuters) – U.S. aerospace and defense company General Dynamics Corp beat analysts’ estimates for quarterly profit on Wednesday, helped by higher demand for its IT services by U.S. government agencies.

The company closed its $9.7 billion purchase of IT services-heavy CSRA Inc in the middle of the year. This was the first full quarter for General Dynamics to report the results of that business as the U.S. government is in the midst of a broad modernization effort.

Revenue rose at all of the company’s businesses, with its information technology unit recording the biggest jump.

Revenue from the IT business more than doubled to $2.31 billion, as integration of the unit continued and the business won several contracts during the quarter. Major wins during the quarter for the unit included a $330 million contract from the U.S. Census Bureau and a $210 million contract from the Centers Medicare & Medicaid Services.

Profit margins at the IT services business slipped from 9.5 percent to 6.8 percent compared to the same period a year ago. Total operating margins for General Dynamics were 12.5 percent, down from 14 percent in the same period last year.

Revenue from the company’s aerospace division, which makes business jets, rose 1.8 percent. Total new Gulfstream deliveries, a key metric for investors, fell to 27 from 30 compared with the third quarter last year. But compared with the second quarter, deliveries rose by one jet and large-cabin Gulfstream deliveries rose to 21 from 18 in the second quarter.

Net earnings rose 11 percent to $851 million in the third quarter ended Sept. 30.

On an adjusted basis, the company earned $2.89 per share, beating Refinitiv estimates of $2.76.

Total revenue rose 20 percent to $9.09 billion, but fell short of estimates of $9.38 billion.

The company’s total backlog at the end of third-quarter 2018 was $69.5 billion, up 4.9 percent from second-quarter 2018. The biggest backlog contributor came from a $3.9 billion contract from the U.S. Navy for the construction of four (DDG-51) guided-missile destroyers.

(Reporting by Mike Stone in Washington and Sanjana Shivdas in Bengaluru; Editing by Shounak Dasgupta and Susan Thomas)

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