Tokyo, Japan – Mitsubishi Heavy Industries (OTC: MHVYF) announced that order intake rose 75.1% year over year to 1.6 billion Yen in the quarter ended June 30, 2023. Revenue rose 12.9%, resulting in profit from business activities (business profit) of 51.9 billion Yen, a 248.1% increase from the previous fiscal year, which represents a profit margin of 5.3%. Profit attributable to owners of parent (net income) was 53.1 billion Yen, an increase of 177.1% year-over-year, with a profit margin of 5.4%. EBITDA was 85.1 billion Yen, an 80.3% increase from Q1 FY2022, with an EBITDA margin of 8.7%, up 3.3 percentage points year-over-year.
Large orders growth in Energy Systems was driven by Gas Turbine Combined Cycle (GTCC), which continues to see strong demand for both new builds and after-sales services. Business profit in the segment increased by 27.0 billion Yen due to a reduction in one-time charges in the Thermal Power businesses as well as revenue growth and improved project margins.
In Plants & Infrastructure Systems, revenue increased by 33.8 billion Yen due to contributions from Metals Machinery and Engineering, while business profit improved by 5.0 billion resulting from increased revenue in Metals Machinery as well as positive developments in Engineering and Machinery Systems’ project mix.
In Logistics, Thermal & Drive Systems, successful passthrough of cost inflation to sales prices mainly in Logistics Systems and Heating, Ventilation & Air Conditioning (HVAC) led to 14.3% increases in order intake and revenue, respectively. Cost passthroughs in these businesses also helped to raise the segment’s business profit by 15.3 billion Yen.
Most notable this quarter is the striking growth in Aircraft, Defense & Space order intake, specifically in Defense & Space, which saw orders rise by 584.1 billion Yen. This is due to large orders for missile defense systems from Japan’s Ministry of Defense as the country seeks to improve its capabilities in this area.
Alstom is to carry out the renewal and automation of Marseille metro for the sum of 430 million euros financed by Métropole Aix-Marseille-Provence. As part of this contract, Alstom will develop, supply and install the operating system and equipment for the automatic operation of the network’s two lines. Alstom will also commission 38 new rubber-tyred metros (4 cars) and modernise all the audiovisual passenger information inside the stations. The new trains are scheduled to enter service in early 2024.
The trains will run in semi-automatic mode with drivers until mid-2025 on line M2 and until 2026 on line M1, before switching to full automation.
“It is a great honour for us to contribute to modernising the mobility offer of Métropole Aix-Marseille-Provence. Our metro experts are already at work on several of our French sites to get started quickly with developments,” says Jean-Baptiste Eyméoud, Senior Vice-President France at Alstom.
The new trains, based on Alstom’s rubber-tyred metro solutions, will incorporate the latest technological developments to increase comfort, availability, accessibility and passenger information, as well as facilitate maintenance.
Each 4-car train, 65 metres long and in “boa”[1] configuration, will be able to carry up to 500 passengers[2]. The sleekly designed trains will feature large bay windows, a highly efficient air conditioning system and modern passenger information systems, providing a pleasant on-board experience. Alstom called on Marseille designers Ora-ïto and Fabien Bourdier for the design and the sound conception of the new trains.
Three designs were proposed to the Metropole Aix-Marseille-Provence, which chose to set up an Internet consultation to give residents the opportunity to give their opinion on the design they would like to see selected.
The new metros for Marseille are environmentally friendly and will be eco-designed, enabling them to be 96% recoverable at the end of their lifespan. They will consume 25% less energy than the metros currently in service, thanks in particular to electric braking (up to 0 km/h), LED lighting and other optimisations.
For the automation system, Alstom will provide its Urbalis 400 solution, already deployed on more than 1,500 kilometres of metro lines worldwide. The Marseille metro will benefit from a proven, continuously improved system (on-board computers equipped with the latest technology, vital computers that are over 99% available, beacon tracker, etc.).
Alstom currently equips 25% of the CBTC[3] metro automations in service (60 lines, including 28 fully automated lines).
In total, more than 400 people in France will work on this project, including more than 60 in Métropole Aix-Marseille-Provence. Jobs will also be generated at our suppliers in France, but also in the Métropole for the installation and deployment of the signalling system.
Alstom will draw on the excellent skills of six of its French sites: Aix-en-Provence for the project management, Valenciennes for the design, interior layout, assembly, tests and validation of the trains, Ornans for the engines, Le Creusot for the bogies, Villeurbanne for the on-board electronics, passenger information, predictive maintenance and signalling system equipment, and Saint-Ouen for the coordination of the artistic design, development and integration of the signalling system.
Alstom has commissioned its first new-generation Citadis X05 tram in its short version, on the first tramway line of Grand Avignon. The inauguration took place in the presence of Elisabeth Borne, Minister of the Ecological and Solidarity Transition, Renaud Muselier, President of Région Sud, Maurice Chabert, President of the Vaucluse Department, Patrick Vacaris, President of Grand Avignon, Cécile Helle, Mayor of Avignon, Jean-Marc Roubaud, President of Técélys and Jean-Baptiste Eyméoud, President of Alstom France.
“Alstom and its teams are proud to be present at the commissioning of this first tramway line in Avignon. Thanks to their reliability, availability and easier maintenance, we are fully confident in the ability of the 14 Citadis trams to address the major travel challenges of the Agglomeration Community of Grand Avignon. I would also like to thank the members of Grand Avignon for having entrusted us with part of the infrastructural work. This new line will become a showcase for the expertise of the French rail sector,” said Jean-Baptiste Eyméoud, President of Alstom in France.
24 metres long, equipped with 4 double doors on each side, the Citadis X05 tram for Grand Avignon will be able to carry more than 140 passengers. The full low floor and double doors facilitate accessibility and passenger exchange in stations. Everything has been designed for a pleasant travel experience: large bay windows covering 40% of the tram, LEDs with diffusers for soft, homogenous lighting, a state-of-the-art information system, large seats, air conditioning, and a video protection system.
Citadis X05 has standardised, proven, more accessible components, providing residents of the Avignon area with reliable, readily available material. Citadis X05 is particularly energy efficient and up to 99% recyclable.
Alstom offers a wide range of products and services and has also provided the tracks (studies, supply and assembly), the 750 V electrical substation and 6 km of overhead contact lines (studies, supply, installation and testing) in partnership with TSO.
Seven of Alstom’s thirteen sites in France are involved in the design and manufacture of the tram for Grand Avignon: La Rochelle (for the design and assembly of the trams), Ornans (for the engines), Le Creusot (for the bogies), Tarbes (for the traction drive equipment), Valenciennes (for the control system and interior layout), Saint-Ouen (for the design and infrastructure activities) and Villeurbanne (for the on-board electronic systems).
14 October 2019 – Alstom will present the first serial vehicle of its Aptis electric bus at Busworld 2019, being held in Brussels from 17 to 23 October. After the four prototypes that have been on the roads of many French and European cities for the past two years, this new design incorporates feedback from passengers and transport operators.
This first serial vehicle is based on an optimised global architecture requiring fewer spare parts references and considerably facilitating maintenance operations. Thanks to a wheel steering angle of more than 40°, its ease of insertion increases significantly. The 15% reduction in the total weight of the vehicle, combined with the use of new, more efficient and state of the art batteries, substantially increases range. Aptis now accommodates more passengers while still offering them more fluidity thanks to large sliding doors.
In addition to the technical improvements, Aptis can also boast significant improvements to passenger comfort. A new air-conditioning system that (fully electrical heat-pump) maximises thermal comfort and the panoramic rear lounge has been enhanced to give a feeling of increased space. The new hydraulic suspension allows superior comfort and sound insulation, making Aptis one of the quietest and most innovative buses on the market.
“Alstom and its teams are very proud to be presenting the first series version of Aptis. This concentration of innovations perfectly represents what we always envisaged the production version of the 100% electric mobility solution would be. This clean, green bus, with its elegant design and optimised technical performance, will offer a new experience to passengers and drivers while meeting the new mobility challenges of urban areas,” underlines Benjamin Bailly, head of Alstom’s electric bus platform.
Aptis has already been chosen by Paris in the context of Europe’s largest call for tender for electric buses, as well as by the cities of Strasbourg, Grenoble, La Rochelle and Toulon. Upcoming milestones include ongoing tests in Spain with the ground-based recharge solution SRS and the training of hundreds of drivers in a new driving experience ahead of the first traffic releases, scheduled for the end of the year in Strasbourg.
Manufacturing and testing of Aptis will be carried out at Alstom’s two sites in Alsace. The Hangenbieten site oversees manufacturing of the end modules (driver’s cab and rear lounge). Manufacturing of the central passenger module, final assembly and tests will be carried out at the Reichshoffen site. This scheme will allow serial production from the end of 2019 onwards. Five other Alstom sites in France contribute to the design and manufacture of Aptis: Saint-Ouen for system integration, Tarbes for traction, Ornans for engines, Villeurbanne for electronic components of the traction chain.
In order to complete Alstom’s vison of road electromobility, exhibited alongside Aptis at Busworld will also be SRS, a completely safe, ground-level, conductive, static recharge system allowing the charging of buses along their route or within depots. As a ground-based solution, it eliminates the need for overhead infrastructure in cities, preserving the aesthetics of the urban landscape. In depots, SRS avoids the infrastructure costs associated with overhead charging systems. SRS for e-buses is based on Alstom’s SRS static recharge technology for trams, a proven solution already in operation in Nice, France. It is developed at Alstom’s Vitrolles site.
Duluth, Minn. & Knoxville, Tenn. – Cirrus Aircraft has announced the TRAC Series, a purpose-built configuration of the best-selling SR Series line of aircraft developed specifically for flight training institutions. The TRAC Series is thoughtfully crafted with reliability, durability and economy in mind to meet the rigors of high-tempo flight operations, while providing industry-leading safety and performance for both the pilot trainee and flight instructor. Combining the Perspective+TM by Garmin® flight deck along with the unrivaled performance and safety uniquely found in the SR Series, the TRAC Series includes tailored features such as rear seat push-to-talk functionality and a landing gear simulator aimed at increasing training productivity.
“Our commitment to flight training goes far beyond innovation in aircraft design to include a unique approach to attracting and training future generations of aviators,” said Zean Nielsen, CEO at Cirrus Aircraft. “The TRAC Series delivers a 21st century solution for world-class, forward-thinking flight training institutions.”
Designed to be the ultimate training platform, the technologically-advanced TRAC Series boasts an impressive list of features and capabilities that complement the aircraft’s stable flight characteristics. The integrated Perspective+ flight deck includes two large flight displays, a Flight Management System (FMS) keypad controller, an Electronic Stability and Protection system, as well as integrated engine indication and crew alerting/warning systems – all features found on today’s advanced airliners.
“Premier flight programs around the world continue to select Cirrus Aircraft for their training fleets,” said David Moser, Vice President of Fleet & Special Mission Aircraft Sales at Cirrus Aircraft. “These partnerships have been instrumental in our development of the technologically-advanced, cost-effective TRAC platform designed exclusively for leading flight academies and universities across the globe.”
Cirrus Aircraft has redesigned the interior to meet the unique needs of a high-utilization training environment, replacing the luxury materials found in the SR Series with a durable all-weather floor liner and easy to clean wear-resistant seats. The spacious cabin provides an optimal workspace to learn and train, with more space than typical training aircraft, rear seats for additional students or observers and optional air conditioning for comfort in all seasons.
The TRAC SR20 comes equipped with a modern Lycoming IO-390, 215HP power plant, providing reliability and efficiency for up to 2,400 hours before overhaul, and features a durable all-composite airframe structure with the signature Cirrus Airframe Parachute System® (CAPS®), making the TRAC Series one of the safest and most versatile training airplanes available today. The TRAC Series is further enhanced by a wide array of interactive, tailored flight training content through Cirrus ApproachTM, including online courses, engaging videos and the award-winning iFOM (interactive Flight Operations Manual) for convenient learning anywhere in the world.
With the TRAC Series, Cirrus Aircraft is poised to expand an already impressive list of world-class flight training programs around the globe that operate fleets of Cirrus aircraft, including Emirates Airline, Lufthansa Aviation Training, the United States Air Force Academy, Airbus Flight Academy, Western Michigan University, Oklahoma State University, Japan Civil Aviation College, the Royal Saudi Air Force and many more.
United Technologies, Raytheon to create $120 billion aerospace and defence giant
(Reuters) – United Technologies Corp agreed on Sunday to combine its aerospace business with U.S. contractor Raytheon Co and create a new company worth about $121 billion, in what would be the sector’s biggest ever merger.
The deal would reshape the competitive landscape by forming a conglomerate which spans commercial aviation and defense procurement. United Technologies provides primarily commercial plane makers with electronics, communications and other equipment, whereas Raytheon mainly supplies the U.S. government with military aircraft and missile equipment.
While United Technologies and Raytheon have some common customers, their business overlap is limited, an argument the companies plan to make once U.S. antitrust regulators start scrutinizing the merger.
However, the two major commercial aircraft makers, Boeing Co and Airbus SE, as well as the Pentagon, have been known to use their significant purchasing power to seek concessions from their suppliers and may not welcome a potential lessening in competition among them.
When United Technologies rebuffed an acquisition offer from Honeywell International Inc in 2016, United Technologies chief executive Greg Hayes justified the decision partly by predicting that Boeing and Airbus would never accept having a supplier that would “build the plane from tip to tail.”
United Technologies has said it is on track to separate its Carrier air conditioning and Otis elevator businesses, leaving the company focused on its aerospace business through its $23 billion acquisition of Rockwell Collins, which was completed in 2018, and the Pratt & Whitney engines business.
Chinese authorities scrutinized the acquisition of airplane parts maker Rockwell Collins closely, given the companies’ footprint in that country’s market. This resulted in the deal closing in November 2018, as opposed to the targeted third quarter.
Trade tensions between the United States and China were blamed at least partly by analysts for that delay, but a source close to the deal said the companies did not expect this to be repeated because Raytheon does not do business in China.
Under the deal announced on Sunday, Raytheon shareholders will receive 2.3348 shares in the combined company for each Raytheon share. The merger is expected to result in more than $1 billion in cost synergies by the end of the fourth year, the companies said.
United Technologies shareholders will own about 57% of the combined business, called Raytheon Technologies Corporation, which will be led by Hayes. Raytheon shareholders will own the remaining stake, and Raytheon CEO Tom Kennedy will be named executive chairman. The companies negotiated the terms over several months, according to the source, who requested anonymity discussing the confidential deliberations.
The deal has been structured so that no shareholder of either company will receive a premium. United Technologies and Raytheon have market capitalizations of $114 billion and $52 billion, respectively.
The deal is expected to close in the first half of 2020.
The newly created company is expected to return between $18 billion and $20 billion of capital to shareholders in the first three years after the deal’s completion, the companies said. The new company will also assume about $26 billion in net debt, they added.
DEFENSE SPENDING RISE
Raytheon, maker of the Tomahawk and the Patriot missile systems, and other U.S. military contractors are expected to benefit from strong global demand for fighter jets and munitions as well as higher U.S. defense spending in fiscal 2020, much of it driven by U.S. President Donald Trump’s administration.
However, Pentagon spending is projected to slow down after an initial boost under Trump. A deal with United Technologies would allow Raytheon to expand into commercial aviation.
Conversely, United Technologies could benefit from reducing its exposure to commercial aerospace clients amid concerns that the rise of international trade protectionism will suppress economic growth and weigh on the flow of goods through air traffic.
The International Air Transport Association, which represents about 290 carriers accounting for more than 80% of global air traffic, cited these concerns earlier this month, when it said the industry is expected to post a $28 billion profit in 2019, down from a December forecast of $35.5 billion.
The deal with Raytheon could put pressure on General Electric Co, which competes with United Technologies for commercial aerospace clients, to seek scale. It could also push other defense contractors, such as Lockheed Martin Corp, to explore expanding their commercial businesses.
Last year, military communication equipment providers Harris Corp and L3 Technologies Inc announced an all-stock merger that, once completed, will create the sixth-largest U.S. defence contractor.
Morgan Stanley, Evercore Inc and Goldman Sachs Group Inc were financial advisers to United Technologies, while Wachtell, Lipton, Rosen & Katz was its legal adviser. Citigroup Inc was financial adviser to Raytheon, and RBC Capital Markets LLC provided a fairness opinion. Shearman & Sterling LLP was legal adviser to Raytheon.
(Reporting by Harry Brumpton and Kate Duguid in New York; Additional reporting by Mike Stone in Washington and Rama Venkat in Bengaluru; Editing by Richard Chang and Rosalba O’Brien)
