BAE Systems Investor Brief - January 2004
30 Jan 04
In this month's brief:
- Transfer of RO DEFENCE into CS&S
- Transfer of Australian business into CS&S
- Germany's Knowledge Manager of the Year
BAE SYSTEMS CONTRACT AWARDS THIS MONTH
- Greeks select HIDAS
- VC10 contract success
- Harrier GR9 contract
- Royal Oman Air Force selects Recce Pods
- FAA contract awards
- Phase 1 Commercial Airliner Protection Effort
- AC-130 Head Up Display contract
- Order for 60 C-17 shipsets
- Tornado Subsystem contract
- AMS wins major UK order for Type 45
- AMS awarded Italian air traffic contracts
- Upgrade contract for SHENZHEN VTS
- Czech Republic confirms Gripen
- IRIS-T missile contract
- Saab investment in Grintek
- ASRAAM missiles delivered to Australia
- MBDA UK recognised as an Investor in People (IiP) organisation
GENERAL NEWS
Transfer of RO DEFENCE into CS&S
As from 1 January 2004, RO Defence has transferred into CS&S. RO Defence is currently responsible for approx 85% of BAE Systems’ UK Land activities. The move to CS&S ensures greater coherence of CS&S’s Land programmes including involvement in such programmes as Whole Fleet Management and the Future Defence Supply Chain Initiative.
CS&S will also assume responsibility for BAE Systems 29% shareholding in Alvis.
There will be no change to the existing external reporting process.
Transfer of Australian business into CS&S
Also from 1 January 2004, following a review of the Australian business, it has been decided to integrate the two business units of Defence Systems (Avionics) and CS&S Australia with a single reporting line to Customer Solutions and Support.
This provides the Australian Defence Force with clear leadership for service delivery, focussed on meeting the Australian Defence Force's evolving defence needs and challenges.
There will be no change to the existing external reporting process.
Germany's Knowledge Manager of the Year
Uwe Schmidt, Knowledge Manager of BAE Systems' 100% owned German subsidiary ATLAS ELEKTRONIK GmbH, Bremen, has been recognised as Germany's Knowledge Manager of the Year 2003.
MAJOR PROGRAMMES UPDATE
Type 45 Destroyer
Vosper Thornycroft have now commenced build of six units at their Portsmouth facility. This now gives a total of 15 units of the 40 for the first in class now in build at the Govan, Scotstoun and Portsmouth shipyards.
LSD(A)
Landing Ship Dock (Auxiliary) Mounts Bay is progressing towards launch on 9th April 2004.
BAE SYSTEMS CONTRACT AWARDS THIS MONTH
Greeks select HIDAS
The Greek Government has signed the US Government FMS (Foreign Military Sales) Letter of Offer and Acceptance to purchase BAE Systems’ HIDAS (Helicopter Integrated Defensive Aids System) for its Longbow Apache attack helicopters.
The HIDAS configuration selected for Greece's Apaches is the same as that specified by the UK MoD for their Apache Longbows, which are soon to enter service with the British Army.
This will be the second FMS sale for HIDAS, following a similar sale to Kuwait in September 2002.
VC10 contract success
CS&S MASS has been awarded a contract worth £207m to guarantee the availability of the VC10 fleet to the Royal Air Force until the beginning of the next decade.
Under the incentivised contract, known as Joint Approach to VC10 Engineering and Logistics Integration (JAVELIN), MASS will assume overall responsibility for providing guaranteed levels of VC10 availability through spares-inclusive maintenance.
Harrier GR9 contract
CS&S MASS has been awarded a contract to provide the next stage of the Harrier GR9 sustainment and upgrade programme, Capability C2. The Capability C2 marks the next milestone in the £500m plus Harrier upgrade programme providing the RAF with an enhanced aircraft capability.
Royal Oman Air Force selects Recce Pods
BAE Systems has been selected by the Royal Air Force of Oman to supply two Advanced Airborne Reconnaissance System pods for use on their F-16 Block 50s. The sale has been undertaken through the United States FMS (Foreign Military Sales) system. The contract value is $27.5m.
FAA contract awards
BAE Systems has been awarded two contracts totaling $107 million by the Federal Aviation Administration (FAA) to provide a variety of support services for the FAA’s acquisition programs in the surveillance systems area.
Under a $67 million systems engineering and implementation support services contract, BAE Systems will provide technical, engineering, analytical and planning support throughout the life cycle of both terminal and en-route primary and secondary radars.
Under a $40 million management and financial support services contract, BAE Systems will provide or support investment analysis, hardware and software development, acquisition, implementation and in-service activities.
Phase 1 Commercial Airliner Protection Effort
Information & Electronic Warfare Systems (IEWS) was one of three contractors selected by the U.S. Department of Homeland Security to develop a plan and test prototypes to help determine whether a viable technology exists that could be deployed to address the potential threat that MAN-Portable Air Defense Systems (MANPADS) pose to commercial aircraft.
The three contractors will each receive approximately $2 million to produce a plan to adapt their military missile detection and countermeasure technologies for commercial aircraft use.
AC-130 Head Up Display contract
Integrated Defense Solutions (IDS) was awarded an order to supply six additional AC-130 Pilot Display Units (PDUs) to Boeing. The $2m contract is in addition to four units the Austin, Texas IDS business unit is already contracted to deliver to Boeing in late 2004.
Order for 60 C-17 shipsets
Platform Solutions’ Aerospace Controls unit received a $110m order from Boeing Integrated Defense Systems for 60 electronic subsystems for U.S. Air Force C-17 Globemaster III aircraft.
Tornado Subsystem contract
The Avionic Systems unit of Platform Solutions received a $60m contract for TARDIS, the Tornado Advanced Radar/Map Display Information System.
TARDIS comprises a Radar Map Display Processor designed by Avionic Systems in Edinburgh and a Radar Video Processor designed by BAE Systems Sensor Systems.
INTERNATIONAL PARTNERSHIPS
AMS wins major UK order for Type 45
AMS has been awarded a contract worth more than £100m to provide five Sampson multi-function radars for the Type 45 ship programme. This is the first order following the existing Sampson development contract and extends work out until 2009.
AMS awarded Italian air traffic contracts
AMS has acquired a €72.5m contract with ENAV to modernise and improve the Italian air traffic infrastructure for the control and approach of en-route traffic for airports such as Florence, Venice and Bergamo.
Upgrade contract for SHENZHEN VTS
ATLAS ELEKTRONIK has been awarded a contract for upgrading existing VTS facilities at Shenzhen, one of China’s fastest-growing container ports on the mouth of the Pearl River in the southern sector of the country.
Under the contract, the present radar station at Zuopaotai/Shekou, west of Hong Kong is to be fitted with new CCTV facilities while an additional station is to be established at Beizaijiao close to Yantian on the eastern side of Hong Kong.
ATLAS ELEKTRONIK currently has 15 radar-based VTS networks operational throughout China, including a system at Dalian Maritime University used to train all national VTS operators and maintenance personnel.
Czech Republic confirms Gripen
Following the 17 December 2003 announcement that the government of the Czech Republic had again selected Gripen to provide its national and NATO air defence needs, contract negotiations for the lease of 14 newly produced aircraft are underway in Prague.
IRIS-T missile contract
Saab Bofors Dynamics and BGT (Bodenseewerk Geraetetechnik GmbH) have signed a €12.5m contract for the Series Preparation and Pilot Lot production phase of two electronics units (Aircraft Interface Unit and Signal Processing Unit) for the IRIS-T missile.
The IRIS-T missile is being developed in co-operation between industries from six nations, with Germany as the lead nation, and will initially arm Gripen and Eurofighters of the participating nations.
Saab Bofors Dynamics is anticipating an order for the Series Production of these electronics units during 2005.
Saab investment in Grintek
Swedish technology group, Saab AB, has secured a 21.2 percent stake in South Africa-based Grintek Ltd, in a transaction that will boost South African high-technology development, manufacturing and exports.
Valued at over R100m, this new direct foreign investment is linked to Saab´s Industrial Participation obligations stemming from South Africa´s purchase of Gripen advanced fighter aircraft.
Saab already has a 49 percent stake in Grintron (Pty) Ltd, the holding company for most of Grintek´s defence and aerospace businesses. Grintek Ltd holds the balance of the shares in Grintron.
ASRAAM missiles delivered to Australia
During November and December 2003, the operational and air training missiles for the Australian customer were built and accepted.
This completed a very encouraging year for ASRAAM, which ended with the production team having completed the build of in excess of 1000 missiles for its customers during 2003.
MBDA UK recognised as an Investor in People (IiP) organisation
Following an assessment completed in December 2003, MBDA UK has been formally recognised as an Investor in People organisation.
