BAE Systems Investor Brief - April 2004
04 May 04
In this month's brief:
- Eurosystems transaction passes significant milestone
- Gripen
- Type 45 Programme
- Bulwark on target
- Nimrod MRA4 engine success
- Contract extension for BOWMAN CMS
- T-50 aircraft order
- QF-4 Follow-On contract
- US Army’s Thermal Weapon Sights contract
- Naval Undersea Warfare Center Services contract
GENERAL NEWS
Duke of York opens Bahrain Office
HRH Prince Andrew, The Duke of York and the UK's representative for International Trade and Investment, officially inaugurated the BAE Systems' office in Manama, the capital of the Arabian Gulf Kingdom of Bahrain.
Award for CS&S NULKA designer
Melbourne flight control systems specialist, Mal Crozier, has been awarded the Australian Academy of Technological Sciences & Engineering (ATSE) Clunies Ross Award for his work in developing the NULKA Missile Decoy system.
The award recognises the application of science and technology for the economic, social or environmental benefit of Australia.
MAJOR PROGRAMMES UPDATE
Eurosystems transaction passes significant milestone
BAE Systems and Finmeccanica have agreed 'in principle' valuations of the businesses involved in the Eurosystems transaction. The activities will now comprise:
- An Avionics JV to be majority owned by Finmeccanica, with capabilities in Sensor Systems, Airborne Radars, Mission Systems, Electro-optics and Electronic Warfare;
- A Systems Integration/C4ISR JV to be majority owned by BAE Systems, with capabilities in Information Systems and Sub-systems, Combat Management Systems, Land and Naval Radars;
- An expanded Communications business, wholly owned by Finmeccanica, with capabilities in Strategic and Tactical Communications Systems.
Gripen
Of the 204 Gripen aircraft on order, 137 have now been delivered from Saab to the Swedish Air Force. A further 16 aircraft are scheduled for delivery during 2004.
Type 45 Programme
At present, there are 25 out of a total of 40 Type 45 units at various stages of construction on the Clyde, and at VT Shipbuilding in Portsmouth.
Bulwark on target
A series of critical trials was successfully completed over the Easter weekend on second of class Landing Platform Dock assault ship Bulwark.
Following departure from Barrow in late May, Bulwark will undergo sea trials and dry docking before delivery to Plymouth in July, at least four weeks ahead of schedule.
Nimrod MRA4 engine success
The lead design and development aircraft, PA01, achieved another major milestone on 19 April when all four of its BR710 engines were powered up for the first time at Air Systems' Woodford site.
This will be followed by further engine ground running, then low and high speed taxi trials, leading ultimately to first flight this summer.
CONTRACTS AWARDED THIS MONTH
Contract extension for BOWMAN CMS
The C4ISR team at Filton has been awarded a £2m contract extension to provide additional integration support to General Dynamics UK. This is a risk reduction measure to ensure that the BOWMAN Communications Management System (CMS) is fully integrated with all of the other BOWMAN elements.
T-50 aircraft order
BAE Systems Integrated Solutions has secured about US$80m in new T-50 business with Korea Aerospace Industries (KAI) and LG Innotek Ltd. of South Korea (LGIT).
The LGIT contract calls for the delivery of T-50 Flight Control Computers, FLCC hardware kits, test equipment, and local in-country production support and training in South Korea. The KAI contract calls for BAE Systems to deliver Control Stick Assemblies, Rate Sensor Assemblies, and Accelerometer Sensor Assemblies.
QF-4 Follow-On contract
BAE Systems received a US$17m contract from the U.S. Air Force for the QF-4 Full Scale Aerial Target (FSAT). The QF-4 FSATs are used for weapons development and training by the U.S. and allied militaries.
Our Mojave, Calif. operations will integrate 13 aircraft by installing components that allow the system to perform unmanned manoeuvres. Options to this contract have the potential of a $230m value over ten-years.
US Army’s Thermal Weapon Sights contract
Information & Electronic Warfare Systems (IEWS) Nashua was selected by the U.S. Army’s Communication and Electronics Command (CECOM) to supply a family of next-generation thermal weapon sights for its soldiers.
The base contract is worth US$111m and could be valued at more than US$250m with options.
The Thermal Weapon Sight (TWS) will be developed by IEWS’ Infrared Imaging Systems (IRIS) business area. It will provide infantry soldiers with the ability to see targets during the day or night in all weather conditions. The contract funds qualification of the sights and manufacturing of 28,000 units.
Naval Undersea Warfare Center Services contract
Team Keyport Services, a joint venture between BAE Systems and Raytheon Integrated Defense Systems (IDS), has been awarded a US$54.7m contract for professional, engineering, and business management services in support of the Naval Undersea Warfare Center (NUWC), Keyport, Wash., USA.
The total cumulative value of the contract could reach approximately US$301.7m if all four one-year options are exercised.
INTERNATIONAL PARTNERSHIPS
Air traffic contract in China
AMS has signed a contract with a Chinese Government company for the supply of two radar systems. Each system includes an ATCR-33S S-band solid state primary surveillance radar and a SIR-S S Mode secondary surveillance radar. The value of the contract is approximately €8m.
Venezuelan Navy contract
AMS has won a contract for the modernisation of three vessels of the Venezuelan Navy, which includes the supply of three NA-18 L/B Fire Control Systems. The contract calls for the supply of a new generation sensor terminal.
ATLAS buys MARIDAN
BAE Systems’ German subsidiary, ATLAS ELEKTRONIK, has enhanced both its technology and product portfolio in Autonomous Underwater Vehicles (AUVs) with the acquisition of the Danish AUV specialist company, MARIDAN. The contract was signed on 25 March with an effective date of 1 April 2004.
