BAE Systems Investor Brief - October 2004
08 Nov 04
In this month's brief:
- NEXT DEFENCE TECHNOLOGY CENTRE ACTIVITY
- AUSTRALIA’S ALR2002 ENTERS PRODUCTION
- VERTICAL PROFESSIONAL SERVICES CONTRACT
- QATAR CONTRACT
- HARRIER SPARES AND REPAIRS CONTRACT
- INCREASE IN ORDER FOR FINNISH CV9030 INFANTRY FIGHTING VEHICLES
- ADVANCED COUNTERMEASURE WARNING SYSTEMS
- UPGRADED POWER SUPPLIES FOR AIR FORCE FIGHTERS
- CONTRACT MOD FOR PACIFIC FLEET AMMO HANDLING
- AMF JTRS PROGRAM
INTERNATIONAL PARTNERSHIPS - NEWS UPDATES
- NEW SONARS FOR DANISH NAVY
- FIRST CZECH GRIPEN FIGHTER MAKES ITS MAIDEN FLIGHT
- MOU SIGNED BETWEEN BULGARIA AND GRIPEN INTERNATIONAL
- NEW GRIPEN TACTICAL SUPPORT AND TRAINING SYSTEM CONTRACT
- METEOR INTEGRATION ON EUROFIGHTER TYPHOON
GENERAL NEWS
Chadderton site sold
BAE Systems has completed the sale of its Chadderton site. Part of the transaction includes CS&S leasing back facilities to accommodate its businesses located at Chadderton, principally the Defence Repairs Business (DRB) and the Tanking, Transport and Reconnaissance Operations (TTRO) business.
MAJOR PROGRAMME UPDATE
Typhoon - First Tranche 2 deliveries
While negotiations on Tranche 2 have been ongoing, funding had been released by the customer at several key stages, allowing production to get underway. Consequently the first set of Typhoon Tranche 2 Centre Fuse Frames have been delivered this month from Samlesbury to EADS in Germany.
Type 45 Project
Type 45 02 is making steady progress with 5 units currently in production on the Clyde and 3 units in production at VT Shipbuilding.
CONTRACT AWARDS THIS MONTH
Next Defence Technology Centre activity
The UK MoD have confirmed that a Consortium of UK companies led by Air Systems has been selected as a preferred bidder for the Defence Technology Centre for Systems Engineering and Integrated Systems for Defence - Autonomous and Semi-Autonomous Vehicles.
Defence Technology Centres are world-class centres of excellence conducting innovative, cutting edge research for enhanced UK Defence capability that facilitate the earliest exploitation of novel defence technology.
The winning of this contract represents a major achievement for BAE Systems since the contract value is up to £50 million, funded jointly by Government and Industry.
Australia’s ALR2002 enters production
CS&S Australia’s Force Awareness and Protection business has signed a contract worth over AUD$9 million to manufacture and support the ALR2002 Advanced Radar Warning Receiver (RWR) for the Australian Defence Force (ADF).
Under the new contract, BAE Systems will commence Low Rate Initial Production and establish a support infrastructure for the system. The ALR2002 Advanced RWR, also known as ComBat, is an Australian designed and developed airborne electronic sensor that passively uses the electromagnetic spectrum to gain information about other parties in the operating environment.
Vertical Professional Services Contract
BAE Systems Australia's Operations business signed the Vertical Professional Services contract on 14 October 2004 in Canberra, Australian Capital Territory.
The contract is an extension of the existing Toledo Communications and Translation Services contract and is worth nearly AUD$6.4 million in sales per year, over a possible nine-year life expectancy.
Qatar Contract
CS&S International have won a £4.25 million 5-year contract to provide strategic advice to the existing and new Doha International Airports in the State of Qatar.
The BAE Systems team will be working with the Doha International Airport client project team and Qatar Airways in establishing prestigious modern ‘world class’ airport facilities that fully reflect Qatar’s international status.
It is intended that construction of the main airport facilities and infrastructure will commence in October 2004, with a forecast completion date in early 2009.
Harrier Spares and Repairs Contract
CS&S MASS has won a new order providing essential components to maintain one of the UK RAF's frontline fast-jets. The new contract will see CS&S MASS provide a 5 year spares and repairs contract for the Harrier GR7's Video Recording System (VRS) with the potential for renewal thereafter. This contract will be delivered using the specialist skills of Avionic Partnered Solutions (APS) within the Avionics Group.
Increase in order for Finnish CV9030 Infantry Fighting Vehicles
Finland's FDF has agreed to buy another 45 CV9030 Infantry Fighting Vehicles, an order worth approximately EUR 120 million (£79 million). FDF selected CV9030 FIN as the Infantry Fighting Vehicle of the Finnish Land Forces at the end of 2000. The initial order was for 57 vehicles, of which 28 have been delivered.
Advanced Countermeasure Warning Systems
The U.S. Army plans to purchase up to 484 Advanced Threat Infrared Countermeasures/Common Missile Warning Systems (ATIRCM/CMWS) from BAE Systems IEWS, Nashua, NH. over the next five years.
The contract has a potential value of $484 million and includes low-rate initial production, spares, test equipment, and technical support.
The ATIRCM tracks an incoming missile, steering a beam of modulated jamming energy onto the missile seeker. ATIRCM/CMWS or CMWS alone is planned for use aboard fixed-wing aircraft and helicopters.
Upgraded Power Supplies for Air Force Fighters
Information & Electronic Warfare Systems’ (IEWS) Radio Frequency Electronic Warfare (RFEW) business area in Yonkers, N.Y., has received a $12.2 million contract to provide low-voltage power supplies to retrofit its AN/ALR-56C systems.
RFEW designed and produced the ALR-56C radar warning receiver, which provides radar warning and situation awareness for the U.S. and Saudi Air Force’s F-15 C/D/E aircraft. The next generation power supplies will replace 20-year-old power supplies currently aboard the F-15 fleet.
Contract Mod for Pacific Fleet Ammo Handling
BAE Systems Technical Services, Fort Walton Beach, Fla., has been awarded a $5.5 million modification to a previously award contract for ammunition storage, handling and management services. Work will be performed at Oahu, Hawaii.
AMF JTRS Program
BAE Systems’ CNIR business unit has been selected as part of the Lockheed Martin-led team awarded a 15-month, $50 million prime contract for the competitive Pre-System Design and Demonstration (Pre-SDD) Phase of the Airborne and Maritime/Fixed Station Joint Tactical Radio System (AMF JTRS) program.
The AMF JTRS program, with a potential worth in excess of $1 billion, will provide the warfighter with next-generation communication capabilities and situational awareness across the battle space.
BAE Systems CNIR is responsible for system and network architecture and analysis, modeling and simulation, hardware and software requirements analysis and development of Ship Integration Kit (SIK) specifications.
INTERNATIONAL PARTNERSHIPS - NEWS UPDATES
New Sonars For Danish Navy
The Danish Navy will receive two ASO 94 Sonar Systems for their Flexible Support Ships from ATLAS. The contract was signed in September 2004 and is an important step into the Danish market. Delivery will take place within 13 months.
First Czech Gripen fighter makes its maiden flight
The maiden flight of the first export Gripen aircraft – destined for the Czech Republic - took place on 18 October at Saab in Linköping, Sweden.
Deliveries of the first NATO-interoperable Gripen fighters to the Czech Republic will take place in mid 2005. This is the first of the 14 Gripen aircraft (12 single seat and 2 dual seat) that the Czech Republic will lease for a period of 10 years under the terms of the agreement signed between the Swedish and Czech authorities in June of this year. Production of the remaining 13 aircraft is continuing at Saab’s facility in Linköping.
MoU signed between Bulgaria and Gripen International
Bulgarian Deputy Minister of Defense Ilko Dimitrov has signed a Memorandum of Understanding with Gripen International and with BAE Systems Information and Electronic Systems International Inc., defining opportunities for co-operation between the Ministry of Defense and the two companies in the area of the modernization of the Bulgarian Armed Forces.
Partnership with Gripen International covers the modernization of the Air Force, while the co-operation with BAE Systems covers modernization of information and communication systems, command and control systems and IFF systems.
New Gripen tactical support and training system contract
Saab and the Swedish Defence Materiel Administration have signed a contract worth just over MSEK 500 (approx. $US70 million) for the development and production of a tactical support and training system for the Gripen fighter.
The PETRA (Planning, Evaluation, Training, Rehearsal and Analysis) system will be delivered to Gripen customers in Sweden, Hungary and the Czech Republic continuously between 2004 and 2007.
Meteor integration on Eurofighter Typhoon
Interim funding was released from the four-nation government contracting agency (NETMA) to Eurofighter on 30 September to commence the Eurofighter / Meteor integration programme for a nine-month period.
Funding had already previously been released for integration of the Beyond Visual Range Air-to-Air Missile onto the other two platforms covered by the contract, Rafale and Gripen.
