Rolls-Royce has signed an agreement to sell the Bergen Engines medium speed gas and diesel engines business to TMH International, the international branch of TMH Group, for net proceeds of approximately EUR 150m.
TMH Group, based in Russia, is a leading engineering company in rail transport technologies and the world’s fourth largest supplier of rail rolling stock. It offers a full range of products and services including medium-speed engines for rail applications with current production of more than 850 engines a year. Established in 2002, TMH is privately-owned and employs 100,000 people across 25 sites worldwide. The acquisition of Bergen Engines, based in Bergen, Norway, is part of TMH’s strategy to diversify its business activities, expand its product portfolio and international footprint.
Bergen Engines will be operated as a stand-alone business by TMH International, which is headquartered in Switzerland. TMH International already operates in Argentina, Cuba, Egypt, Germany, Hungary, Israel and South Africa.
The agreement follows a strategic review by Rolls-Royce of Bergen Engines announced in February 2020. The sale includes the medium speed engine factory, service workshop and foundry in Norway; engine and power plant design capability; and a global service network spanning more than seven countries. Since 1946, Bergen Engines has supplied over 7,000 engines to marine and power generation customers worldwide, of which around 4,000 are still in operation. Bergen Engines’ long-term relationship with Kongsberg Maritime, distributor of Bergen medium speed engines to the maritime market, is planned to continue as is.
Rolls-Royce has signed an agreement to sell the Bergen Engines medium speed gas and diesel engines business to TMH International, the international branch of TMH Group, for net proceeds of approximately EUR 150m.
Bergen Engines plant in Hordvikneset near Bergen, Norway
TMH Group, based in Russia, is a leading engineering company in rail transport technologies and the world’s fourth largest supplier of rail rolling stock. It offers a full range of products and services including medium-speed engines for rail applications with current production of more than 850 engines a year. Established in 2002, TMH is privately-owned and employs 100,000 people across 25 sites worldwide. The acquisition of Bergen Engines, based in Bergen, Norway, is part of TMH’s strategy to diversify its business activities, expand its product portfolio and international footprint.
Bergen Engines will be operated as a stand-alone business by TMH International, which is headquartered in Switzerland. TMH International already operates in Argentina, Cuba, Egypt, Germany, Hungary, Israel and South Africa.
The agreement follows a strategic review by Rolls-Royce of Bergen Engines announced in February 2020. The sale includes the medium speed engine factory, service workshop and foundry in Norway; engine and power plant design capability; and a global service network spanning more than seven countries. Since 1946, Bergen Engines has supplied over 7,000 engines to marine and power generation customers worldwide, of which around 4,000 are still in operation. Bergen Engines’ long-term relationship with Kongsberg Maritime, distributor of Bergen medium speed engines to the maritime market, is planned to continue as is.
Bergen Engines has been a part of Rolls-Royce since 1999 and has approximately 950 employees, with the majority based in Bergen, Norway. In 2019 the business generated revenues of £239m which were consolidated within the results of our Power Systems business.
The transaction has been approved by the boards of both Rolls-Royce and TMH and is expected to close in the second half of 2021.
Cirrus Aircraft today unveiled a new Limited Edition aircraft to commemorate the delivery of its 8,000th SR Series aircraft later this year – the 8000 Limited Edition SR Series. Inspired by the company’s rich history of designing and building aircraft that inspire people to experience the world through personal aviation, the new design features bold colors and unapologetic accents on the exterior and interior.
Echoing the momentum of the runway lines as you prepare for take-off, the 8000 Limited Edition SR Series features an exterior that is impossible to miss. The design is accentuated by an industry-first Volt wing paint scheme, commanding attention on the ground and in the air. The unmistakable graphics and colors carry through into the interior with Volt stitching on the seats and embroidery on the door, and luxury perforated leather on the seats and throttle. In addition to the exciting new design, each of the limited run of eight (8) exclusive 8000 Limited Edition aircraft will be delivered along with a curated series of gifts and events for the new owners.
Cirrus Aircraft’s first high-performance SR Series airplane – the SR20 – was delivered in 1999 and transformed general aviation with intuitive avionics, game-changing performance and revolutionary safety systems, including the Cirrus Airframe Parachute System® (CAPS®). The SR Series has been the world’s best-selling single-engine piston for 18 years in a row, with a portfolio that includes the SR20, SR22 and the turbocharged SR22T. Later this year, the company will deliver its 8000th SR Series aircraft and exceed 11 million flight hours in more than 60 countries around the world.
The sixth generation SR Series – G6 SR Series – quickly reaffirmed Cirrus Aircraft’s position as the industry leader and, once again, raised the benchmark for high performance, single-engine aircraft. The 2017 G6 SR Series launched the high-speed Cirrus Perspective+TM by Garmin® flight deck, Cirrus SpectraTM wingtip lighting, premium cockpit connectivity solutions and more. In the following years, the G6 SR Series was further enhanced with flight deck upgrades and new features in connectivity, including the Cirrus Aircraft mobile app powered by Cirrus IQ™ for access to real-time aircraft data from virtually anywhere in the world, flight data streaming and the ability to text or call contacts on the ground with FlightStream 510.
The 8000 Limited Edition SR Series was imagined and designed by the Xi Design Studio – Cirrus Aircraft’s talented in-house personalization team. The Limited Edition continues to expand the Xi Design Studio’s ability to incorporate luxury automobile-inspired details, handcrafted finishes and customization defined and inspired by the owner’s imagination.
Boeing [NYSE: BA] and BBAM Limited Partnership today announced the lessor is expanding its 737-800 Boeing Converted Freighter fleet with six firm orders and six options. The agreement brings BBAM’s 737-800BCF orders and commitments to 15 and highlights the continued strength of the e-commerce and express cargo market.
“As we look ahead to expanding our cargo fleet, the 737-800 Boeing Converted Freighter provides the performance and efficiency our customers need,” said Steve Zissis, CEO of BBAM. “Adding these highly capable freighters to 276 Boeing airplanes in our managed fleet helps to further strengthen our leadership position in the marketplace.”
Based on the popular Next-Generation 737, the 737-800BCF is meeting customer demand for a newer-generation freighter that offers higher reliability and lower fuel consumption and operating costs per trip compared to other standard body freighters. Primarily used to carry express cargo on domestic or short-haul routes, the airplane is capable of carrying up to 23.9 tonnes (52,800 pounds) and flying up to 2,025 nautical miles (3,750 kilometers). Since entering service in 2018, the 737-800BCF has won more than 150 orders and commitments.
“BBAM is one of the industry’s leading full-service leasing companies and has built their reputation on smart investments. We are honored that BBAM has selected more 737-800BCFs, based on the success of our standard body freighters in their portfolio,” said Ihssane Mounir, Boeing’s senior vice president of Commercial Sales and Marketing. “The continued strong demand for the 737-800BCF demonstrates the critical role these converted freighters play in the growing express and e-commerce market.”
BBAM is the world’s largest dedicated manager of investments in leased commercial jet aircraft, providing over 200 airline customers in more than 50 countries with fleet and financing solutions over the last three decades. BBAM is the only manager in the aircraft leasing industry focused exclusively on generating investment returns for third-party investors. BBAM currently has more than $28 billion of assets under management and employs over 150 professionals at its headquarters in San Francisco and in additional offices in Tokyo, Singapore, Zurich, Dublin and Santiago. For more information about BBAM, please visit its website at www.bbam.com.
Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As a top U.S. exporter, the company supports commercial and government customers in more than 150 countries and leverages the talents of a global supplier base. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.
Melbourne, Florida, November 5, 2020 — Two global companies at the forefront of technology and innovation, Embraer and Porsche, have collaborated to create Duet, a limited-edition, limited-quantity Embraer Phenom 300E aircraft and Porsche 911 Turbo S car pairing. Both known for world-class engineering, performance, and design, Embraer and Porsche will produce just ten pairs of business jets and sports cars, providing a truly seamless experience from road to sky, for the first time in history.
“Duet is an exclusive package developed in a unique design collaboration with Porsche. This rare, refined combination will only be available through this one-time-only pairing,” said Michael Amalfitano, President & CEO, Embraer Executive Jets. “In the spirit of delivering the ultimate customer experience, we are fusing two of the most notable brands in the aerospace and automotive industries, bringing together the pinnacle in production sports cars with the market benchmark in light jets, once again proving that we don’t simply follow trends — we create them.”
Duet brings the Phenom 300E and the 911 Turbo S into perfect harmony. As the world’s fastest and longest-ranged single-pilot business jet, the Phenom 300 series transformed the light jet category. From its revolutionary, award-winning interior design, with an abundance of cabin and baggage space to its highly intuitive avionics, this well-rounded machine delivers unmatched performance, exceptional comfort, and class-leading technology, at enviably low operating costs, with features previously available only on much larger jets. The 911 is the heart of the Porsche product portfolio and has one of the longest and most celebrated traditions in the automotive industry. The 911 Turbo S is the peak of the 911 models and stands for both performance and usability.
“Porsche and Embraer share a host of common values,” said Alexander Fabig, Vice President Individualization and Classic at Porsche AG. “As part of our cooperation, we used the know-how of both brands to work jointly on a unique pair of vehicles that are equally attractive for the customer group of jet and sports car owners.” Designed in tandem, Duet fuses speed and style, luxury and power — signatures of both the Phenom 300E and Porsche 911 Turbo S. The most successful business jet of the decade (2010-2019) meets the gold standard in production sports cars, resulting in a uniquely designed jet and car, both featuring a customized interior and paint scheme inspired by one another.
“This is the perfect marriage of car and jet, as personified by the exclusive collaboration logo. The logo brings together the aeronautical requirement of lift — depicted by the Phenom 300E winglet — with the automotive requirement of downforce — depicted by the rear wing of the flagship 911. To further solidify this symbiotic partnership, the aircraft registration number appears on both the car’s rear wing and the sides of its key,” said Jay Beever, Vice President of Embraer Design Operations.
The exclusive collaboration logo is embossed on the seat headrests of the aircraft (lift) and debossed on the seat headrests of the car (downforce), as well as featured on the aircraft sideledge, speaker grills, and mounted near the main door. Each pairing also features a special badge, representing one of only ten delivered. The customer will have the option to select the location of a blue chip, reflective of their position among the ten units, according to their preference.
To create a seamless transition from aircraft to car for this exclusive set of customers, design inspiration for the aircraft mirrors that of the car, and vice versa. Starting with seats, the sew style on the Phenom 300E seat was patterned after that of the 911 Turbo S. The seats in both vehicles feature red pull straps, a Speed Blue accent stitch, and carbon fiber shrouds to create a shared connection. The cockpit seats of the Phenom 300E were redesigned to match the car. In the 911 Turbo S, Porsche introduced a unique color combination for the steering wheel to match the aircraft’s yoke, with a Speed Blue accent at 12 o’clock, as well as the first Chalk Alcantara trim roof lining — an homage to the aircraft. To round out the interior, the stopwatch of the Sport Chrono package features an artificial horizon inspired by instrumentation in the aircraft cockpit.
The aircraft and car share the same exterior paint pallet and general scheme. For the first time, Porsche has combined gloss and satin-gloss paintwork. The upper part of the car is finished with Platinum Silver Metallic, transitioning to Jet Grey Metallic at the bottom. Dividing the two paint colors is a trim strip with lines in Brilliant Chrome and Speed Blue. The car is entirely hand-painted, which is unique to this project and reflective of the Phenom 300E paint process. The alloy wheels of the 911 Turbo S are painted in Platinum Silver Metallic, using a revolutionary laser process to expose a Speed Blue underlay on the rim flange. The air intakes of the 911 Turbo S are painted in Brilliant Chrome to match the leading edge nacelles of the aircraft. The LED door projectors cast the Duet collaboration logo on the ground, and the door sill trims feature “No Step” lettering, like the messaging on an aircraft wing.
The exclusive Duet Porsche 911 Turbo S can only be purchased in tandem with its sibling Phenom 300E. To mark this first ever collaboration between Embraer, Porsche AG, and Porsche Design, Duet customers will also receive a custom Duet logo luggage set with a pilot’s bag and two weekenders, as well as a special edition Porsche Design 1919 Globe timer UTC titanium-case watch inspired by the aircraft’s cockpit.
Ten limited-edition pairs of the Duet are now available for order. Deliveries will begin in 2021.
– Financial results continue to be significantly impacted by COVID-19 and the 737 MAX grounding
– Proactively managing liquidity and transforming for the future
– Revenue of $14.1 billion, GAAP loss per share of ($0.79) and core (non-GAAP)* loss per share of ($1.39)
– Operating cash flow of ($4.8) billion; cash and marketable securities of $27.1 billion
– Total backlog of $393 billion, including more than 4,300 commercial airplanes
Table 1. Summary Financial Results
Third Quarter
Nine Months
(Dollars in Millions, except per share data)
2020
2019
Change
2020
2019
Change
Revenues
$14,139
$19,980
(29)%
$42,854
$58,648
(27)%
GAAP
(Loss)/Earnings From Operations
($401)
$1,259
NM
($4,718)
$229
NM
Operating Margin
(2.8)%
6.3%
NM
(11.0)%
0.4%
NM
Net (Loss)/Earnings
($466)
$1,167
NM
($3,502)
$374
NM
(Loss)/Earnings Per Share
($0.79)
$2.05
NM
($6.10)
$0.66
NM
Operating Cash Flow
($4,819)
($2,424)
NM
($14,401)
($226)
NM
Non-GAAP*
Core Operating (Loss)/Earnings
($754)
$895
NM
($5,773)
($864)
NM
Core Operating Margin
(5.3)%
4.5%
NM
(13.5)%
(1.5)%
NM
Core (Loss)/Earnings Per Share
($1.39)
$1.45
NM
($7.88)
($1.13)
NM
*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.”
The Boeing Company [NYSE: BA] reported third-quarter revenue of $14.1 billion, GAAP loss per share of ($0.79) and core loss per share (non-GAAP)* of ($1.39), reflecting lower commercial deliveries and services volume primarily due to COVID-19 (Table 1). Boeing recorded operating cash flow of ($4.8) billion.
“The global pandemic continued to add pressure to our business this quarter, and we’re aligning to this new reality by closely managing our liquidity and transforming our enterprise to be sharper, more resilient and more sustainable for the long term,” said Boeing President and Chief Executive Officer Dave Calhoun. “Our diverse portfolio, including our government services, defense and space programs, continues to provide some stability for us as we adapt and rebuild for the other side of the pandemic. We remain focused on the health and safety of our employees and their communities. I’m proud of the dedication and commitment our teams have demonstrated as they continued to deliver for our customers in this challenging environment. Despite the near-term headwinds, we remain confident in our long term future and are focused on sustaining critical investments in our business and the meaningful actions we are taking to strengthen our safety culture, improve transparency and rebuild trust.”
Following the lead of global regulators, Boeing made steady progress toward the safe return to service of the 737 MAX, including rigorous certification and validation flights conducted by the U.S. Federal Aviation Administration, Transport Canada and the European Union Aviation Safety Agency. The Joint Operational Evaluation Board, featuring civil aviation authorities from the United States, Canada, Brazil, and the European Union, also conducted its evaluations of updated crew training. The 737 MAX has now completed around 1,400 test and check flights and more than 3,000 flight hours as it progresses through the robust and comprehensive certification process.
To adapt to the market impacts of COVID-19 and position the company for the future, Boeing continued its business transformation across five key areas including its infrastructure footprint, overhead and organizational structure, portfolio and investment mix, supply chain health and operational excellence. As the company resizes its operations to align with market realities, Boeing expects to continue lowering overall staffing levels through natural attrition as well as voluntary and involuntary workforce reductions, and recorded additional severance costs in the third quarter.
Table 2. Cash Flow
Third Quarter
Nine Months
(Millions)
2020
2019
2020
2019
Operating Cash Flow
($4,819)
($2,424)
($14,401)
($226)
Less Additions to Property, Plant & Equipment
($262)
($465)
($1,038)
($1,387)
Free Cash Flow*
($5,081)
($2,889)
($15,439)
($1,613)
*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.”
Operating cash flow was ($4.8) billion in the quarter, reflecting lower commercial deliveries and services volume primarily due to COVID-19, as well as timing of receipts and expenditures (Table 2).
Table 3. Cash, Marketable Securities and Debt Balances
Quarter-End
(Billions)
Q3 20
Q2 20
Cash
$10.6
$20.0
Marketable Securities1
$16.5
$12.4
Total
$27.1
$32.4
Debt Balances:
The Boeing Company, net of intercompany loans to BCC
$59.1
$59.5
Boeing Capital, including intercompany loans
$1.9
$1.9
Total Consolidated Debt
$61.0
$61.4
1Marketable securities consists primarily of time deposits due within one year classified as “short-term investments.”
Cash and investments in marketable securities decreased to $27.1 billion, compared to $32.4 billion at the beginning of the quarter, primarily driven by operating cash outflows (Table 3). Debt was $61.0 billion, down from $61.4 billion at the beginning of the quarter due to the repayment of maturing debt.
Total company backlog at quarter-end was $393 billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes
Third Quarter
Nine Months
(Dollars in Millions)
2020
2019
Change
2020
2019
Change
Commercial Airplanes Deliveries
28
62
(55)%
98
301
(67)%
Revenues
$3,596
$8,249
(56)%
$11,434
$24,793
(54)%
Loss from Operations
($1,369)
($40)
NM
($6,199)
($3,813)
NM
Operating Margin
(38.1)%
(0.5)%
NM
(54.2)%
(15.4)%
NM
Commercial Airplanes third-quarter revenue decreased to $3.6 billion, reflecting lower delivery volume primarily due to COVID-19 impacts as well as 787 quality issues and associated rework. Third-quarter operating margin decreased to (38.1) percent, primarily driven by lower delivery volume, as well as $590 million of abnormal production costs related to the 737 program.
Commercial Airplanes added the final 777X flight test airplane to the test program and the GE9X engine received FAA certification. In October, the company decided it will consolidate 787 production in South Carolina in mid-2021, which did not have a significant financial impact on the program in the third quarter. Commercial Airplanes delivered 28 airplanes during the quarter, and backlog included over 4,300 airplanes valued at $313 billion.
Defense, Space & Security
Table 5. Defense, Space & Security
Third Quarter
Nine Months
(Dollars in Millions)
2020
2019
Change
2020
2019
Change
Revenues
$6,848
$7,002
(2)%
$19,478
$20,168
(3)%
Earnings from Operations
$628
$754
(17)%
$1,037
$2,581
(60)%
Operating Margin
9.2%
10.8%
(1.6) Pts
5.3%
12.8%
(7.5) Pts
Defense, Space & Security third-quarter revenue decreased to $6.8 billion, primarily due to derivative aircraft award timing, partially offset by higher fighter volume (Table 5). Third-quarter operating margin decreased to 9.2 percent reflecting less favorable performance, including a $67 million KC-46A Tanker charge.
During the quarter, Defense, Space & Security received an award for eight F-15EX advanced fighter aircraft for the U.S. Air Force and a contract extension for the International Space Station for NASA, as well as contracts for nine additional MH-47G Block II Chinook helicopters for the U.S. Army Special Operations and four additional 702X satellites. Also in the quarter, the U.S. Air Force and Boeing team was awarded the Collier Trophy for aerospace excellence for the X-37B autonomous spaceplane. Significant milestones included inducting the 20th U.S. Navy F/A-18 into the Service Life Modification program as well as delivering the firstBell Boeing V-22 Osprey to Japan and the first MH-47G Block II Chinook to the U.S. Army Special Operations.
Backlog at Defense, Space & Security was $62 billion, of which 30 percent represents orders from customers outside the U.S.
Global Services
Table 6. Global Services
Third Quarter
Nine Months
(Dollars in Millions)
2020
2019
Change
2020
2019
Change
Revenues
$3,694
$4,658
(21)%
$11,810
$13,820
(15)%
Earnings from Operations
$271
$673
(60)%
$307
$2,013
(85%)
Operating Margin
7.3%
14.4%
(7.1) Pts
2.6%
14.6%
(12.0) Pts
Global Services third-quarter revenue decreased to $3.7 billion, driven by lower commercial services volume due to COVID-19, partially offset by higher government services volume (Table 6). Third-quarter operating margin decreased to 7.3 percent primarily due to lower commercial services volume and additional severance costs.
During the quarter, Global Services signed an agreement with GECAS for 11 737-800 Boeing Converted Freighters, secured a six-year P-8A support contract for the Royal Australian Air Force, and was awarded F-15EX training and services support contracts by the U.S. Air Force. Global Services also delivered the first P-8A Operational Flight Trainer for the United Kingdom Royal Air Force.
Additional Financial Information
Table 7. Additional Financial Information
Third Quarter
Nine Months
(Dollars in Millions)
2020
2019
2020
2019
Revenues
Boeing Capital
$71
$66
$205
$207
Unallocated items, eliminations and other
($70)
$5
($73)
($340)
Earnings from Operations
Boeing Capital
$30
$29
$47
$86
FAS/CAS service cost adjustment
$353
$364
$1,055
$1,093
Other unallocated items and eliminations
($314)
($521)
($965)
($1,731)
Other income, net
$119
$121
$325
$334
Interest and debt expense
($643)
($203)
($1,458)
($480)
Effective tax rate
49.6%
0.8%
40.1%
(350.6)%
At quarter-end, Boeing Capital’s net portfolio balance was $2.0 billion. The change in revenue and earnings from other unallocated items and eliminations was primarily due to the timing of cost allocations. Earnings from other unallocated items and eliminations was also impacted by lower enterprise research and development expense. Interest and debt expense increased due to higher debt balances. The third quarter effective tax rate reflects tax benefits related to the five year net operating loss carryback provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act as well as the impact of pre-tax losses.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in the United States of America (GAAP) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company’s ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:
Core Operating Earnings, Core Operating Margin and Core Earnings Per Share
Core operating earnings is defined as GAAP earnings from operations excluding the FAS/CAS service cost adjustment. The FAS/CAS service cost adjustment represents the difference between the FAS pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margin is defined as core operating earnings expressed as a percentage of revenue. Core earnings per share is defined as GAAP diluted earnings per share excluding the net earnings per share impact of the FAS/CAS service cost adjustment and Non-operating pension and postretirement expenses. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs, comprising service and prior service costs computed in accordance with GAAP are allocated to Commercial Airplanes and BGS businesses supporting commercial customers. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating earnings, core operating margin and core earnings per share for purposes of evaluating and forecasting underlying business performance. Management believes these core earnings measures provide investors additional insights into operational performance as they exclude non-service pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation between the GAAP and non-GAAP measures is provided on pages 12-13.
Free Cash Flow
Free cash flow is GAAP operating cash flow reduced by capital expenditures for property, plant and equipment. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. Table 2 provides a reconciliation of free cash flow to GAAP operating cash flow.
Caution Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions generally identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but 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 and adversely from these forward-looking statements. Among these factors are risks related to: (1) the COVID-19 pandemic and related government actions, including with respect to our operations, our liquidity, the health of our customers and suppliers, and future demand for our products and services; (2) the 737 MAX, including the timing and conditions of 737 MAX regulatory approvals, lower than planned production rates and/or delivery rates, and increased considerations to customers and suppliers, (3) general conditions in the economy and our industry, including those due to regulatory changes; (4) our reliance on our commercial airline customers; (5) the overall health of our aircraft production system, planned commercial aircraft production rate changes, our commercial development and derivative aircraft programs, and our aircraft being subject to stringent performance and reliability standards; (6) changing budget and appropriation levels and acquisition priorities of the U.S. government; (7) our dependence on U.S. government contracts; (8) our reliance on fixed-price contracts; (9) our reliance on cost-type contracts; (10) uncertainties concerning contracts that include in-orbit incentive payments; (11) our dependence on our subcontractors and suppliers, as well as the availability of raw materials; (12) changes in accounting estimates; (13) changes in the competitive landscape in our markets; (14) our non-U.S. operations, including sales to non-U.S. customers; (15) threats to the security of our or our customers’ information; (16) potential adverse developments in new or pending litigation and/or government investigations; (17) customer and aircraft concentration in our customer financing portfolio; (18) changes in our ability to obtain debt financing on commercially reasonable terms and at competitive rates; (19) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures; (20) the adequacy of our insurance coverage to cover significant risk exposures; (21) potential business disruptions, including those related to physical security threats, information technology or cyber-attacks, epidemics, sanctions or natural disasters; (22) work stoppages or other labor disruptions; (23) substantial pension and other postretirement benefit obligations; and (24) potential environmental liabilities.
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
Eve Urban Air Mobility Solutions, Inc. (Eve) has been launched as a new, independent company dedicated to accelerating the Urban Air Mobility (UAM) ecosystem. Eve is developing a full portfolio of solutions to enable the UAM market and ultimately benefit people’s lives, including the progression and certification of the company’s electric vertical takeoff and landing vehicle (eVTOL), the associated comprehensive services and support network, and the creation of urban air traffic management solutions. André Stein, former head of strategy for EmbraerX, has been appointed CEO of Eve.
Eve will benefit from greater focus, speed, and agility, allowing the company to innovate and execute at an accelerated pace in order to fully capitalize on the global UAM opportunity. Having been incubated for almost four years within EmbraerX, now is the right time to establish Eve as an independent company.
“We value the vast potential of the UAM market, as it represents a new business segment in which we foresee significant opportunities for Embraer. Innovation and diversification are key pillars of Embraer’s new strategic plan, which will increase revenue and improve profitability over the next few years,” said Francisco Gomes Neto, President and CEO of Embraer. “That is why I am eager to announce Eve, the first company to graduate from EmbraerX. Eve stands primed to create a new frontier in transportation with intelligent, environmentally friendly, autonomous-ready aircraft and the associated ubiquitous support and urban air traffic management solutions.”
As part of the company’s initiative to accelerate the UAM revolution, EmbraerX has been part of the Uber Elevate Network since its inception in 2017.
“Eve’s launch is an important next step in commercializing Embraer’s eVTOL designs while building on Embraer’s ability to design, certify, and deliver safe, globally-accepted aircraft. We look forward to our continued partnership to make aerial ridesharing a reality,” said Eric Allison, Head of Uber Elevate.
Benefitting from a startup mindset, backed by Embraer’s more than 50-year history of aerospace expertise, Eve today unveils a unique and valuable market proposition. Eve’s human-centered eVTOL design represents an actual, certifiable product development, as evidenced by the first flight of the engineering simulator in July 2020, and the company is harnessing the expertise of both Embraer and Atech, a subsidiary of the Embraer Group, in providing globally-recognized air traffic management software to create the solutions that will help safely scale the UAM industry going forward.
The Boeing Company [NYSE: BA] announced today major program deliveries across its commercial and defense operations for the third quarter of 2020.
“We continue to work closely with our customers around the globe, understanding their near-term and longer term fleet needs, aligning supply and demand while navigating the significant impact this global pandemic continues to have on our industry,” said Greg Smith, Boeing executive vice president of Enterprise Operations and chief financial officer. “We’re taking actions to resize, reshape and transform our business to preserve liquidity, adapt to the new market reality and ensure that we deliver the highest standards of safety and quality as we position our company to be more resilient for the long term. Our diverse portfolio, including our government services, defense and space programs, continues to provide some stability as we adapt and rebuild stronger for the other side of the pandemic.”
Major program deliveries during the third quarter were as follows:
– Acquisition Reinforces Lockheed Martin’s Commitment to Delivering Exceptional Systems to the Warfighter
Lockheed Martin [NYSE: LMT] today announced the signing of a definitive agreement to acquire a portion of Integration Innovation Inc. (i3), a software and systems engineering company based in Huntsville, Alabama. The portfolio alignment between i3 and Lockheed Martin provides the opportunity to design and deliver hypersonic-specific technology solutions that benefit the warfighter.
“Our customers require the most forward-thinking, advanced technology that anticipates and addresses their national security requirements. This business combination not only reinforces our commitment to their missions, but also expands our portfolio in a strategic way,” said Eric Scherff, vice president of Hypersonic Strike Programs at Lockheed Martin. “Combining i3’s talent and domain expertise with our shared vision for hypersonic strike will expand how we think about and deliver this critical capability to the warfighter across domains.”
i3’s hypersonic strike and defense business set offers strategic solutions to U.S. Government and commercial customers. Adding i3’s talent and expertise to the Lockheed Martin portfolio will expand capabilities for customers across several mission areas and national security needs, while also allowing for more integrated solutions.
“We’re proud to be a part of the Lockheed Martin family, as they are a technology authority and employ some of the best and brightest in the industry,” said Mike Wicks, CEO at i3. “We have invested much time and energy into developing strategic solutions at i3. And, we’re finding the need to synergize these offerings with Lockheed Martin is more timely than ever and unlocks the value to our joint customers.”
Subject to the satisfaction of customary closing conditions, the transaction is expected to close in approximately 30 days. Upon closing, i3’s Hypersonics portfolio will be managed by the corporation’s Space business area.
Hyatt Hotels Corporation (NYSE: H) today announced the opening of three different distinct hotels across the United States. The new properties include the Grand Hyatt Nashville, Hotel Kansas City, part of The Unbound Collection, and the Hyatt Centric Center City Philadelphia.
The Grand Hyatt Nashville
“Hyatt remains committed to thoughtfully growing our full-service portfolio of brands across the United States,” said Pete Sears, Americas group president, Hyatt. “Hyatt’s purpose of care and our ability to offer guests a customized experience is at the center of these exciting new openings. We believe there is a strong pent-up demand for travel and these new Hyatt hotels are well positioned to offer locally inspired programming, curated experiences and elevated services which our loyal members and guests expect from Hyatt.”
Hotel Kansas City, part of the Unbound Collection
The Hyatt Centric Center City Philadelphia is a brand new built 332-room upscale lifestyle hotel that includes 22 suites centrally located in the heart of downtown Philadelphia. The hotel features contemporary guest rooms and amenities, with more than 5,000 square feet worth of meeting space, a lobby bar and restaurant with American cuisine, and a grab and go market.
Located in Philadelphia’s desirable Rittenhouse Square neighborhood, the location is steps away from tree-filled parks, outdoor gardens, splendid architecture, upscale dining, boutique shops, and a robust nightlife. Located eight miles from Philadelphia International Airport, Hyatt Centric Center City Philadelphia connects travelers with popular Philadelphia historical and cultural attractions in the museum district and Independence National Historic Park.
– Leonardo’s U.S. subsidiary Selex ES Inc. launches AeroBOSS solutions to prevent runway incursions and protect global air travelers
– AeroBOSS provides a common operating platform enabling command and control of airport operations, maintenance and emergency resources
Leonardo’s U.S. subsidiary, Selex ES Inc., developer of en-route navigation, precision approach and landing, and surveillance systems, recently added airport surface management technologies to their air traffic control solutions.
Marketed under the name AeroBOSS, the technologies offer real-time, collaborative decision-making, flight and ground vehicle tracking, and runway safety systems that allow all surface vehicles to operate safer and more efficiently. AeroBOSS provides an airport-wide common operating platform enabling command and control of airport operations, maintenance, and emergency resources. One of the core AeroBOSS solutions is the AeroBOSS Runway Incursion Warning System (RIWS) that prevents runway accidents by alerting vehicle drivers of hazards before entering the runway area.
There are nearly thirty-one hundred airports in the world with commercial air carrier service, but only a small percentage have runway incursion prevention systems. Selex ES Inc. AeroBOSS technologies, developed for Air Navigation Service Providers and airports is able to improve airport safety efficiently and cost-effectively.
The addition of AeroBOSS solutions to Leonardo’s portfolio comes as the result of collaboration with U.S.-based INDMEX. The timing is critical, as the Civil Air Navigation Services Organization and Flight Safety Foundation have expressed concerns regarding the risks of airport runway incursions as air travel begins to return to normal following the sharp declines due to the COVID-19 pandemic.
