BAE Systems Investor Brief - December 2004
03 Jan 05
In this month's brief:
- NIMROD MRA4 PA02 ACHIEVES FIRST FLIGHT
- EUROFIGHTER TRANCHE 2 SIGNED
- TYPE 45
- ASTUTE DESIGN ACCEPTED
- ASTUTE INTEGRATION FACILITY
- HARRIER MAJOR MILESTONES MET
BAE SYSTEMS CONTRACT AWARDS THIS MONTH
- SATELLITE BASED TACTICAL COMMUNICATIONS SYSTEM PROGRAM
- MAJOR ORDER FOR LAND SYSTEMS HÄGGLUNDS
- LOW BAND TRANSMITTER CONTRACT FROM US NAVY
- LPD SUPPORT SUCCESS
- F124 SOFTWARE CONTRACT
INTERNATIONAL PARTNERSHIPS - AMS
INTERNATIONAL PARTNERSHIPS - GRIPEN INTERNATIONAL
INTERNATIONAL PARTNERSHIPS – MBDA
GENERAL NEWS
IESI Sector creates new Intelligence Organisation
BAE Systems North America’s Information and Electronic Systems Integration (IESI) Sector has established a new organisation to develop technology solutions for the intelligence community.
Based in Rosslyn, Va., the Intelligence and Information Operations (IO) Initiative will strategically integrate ongoing intelligence and Intelligence Operations programs from facilities in Columbia, Md., Reston, Va., Falls Church, Va., and Merrimack, N.H. Its principal focus will be Intelligence Community and Department of Homeland Security customers.
Telford Site
Following a review by BAE Systems' Land Systems business of the current and future demands for armoured vehicle production capacity at its Telford site, the company has decided to reaffirm a number of actions announced by Alvis Plc, the previous owner, in December 2002 and January 2004.
These actions include the loss of 110 jobs at the Telford site and confirmation that BAE Systems is considering the sale of the Telford site. The Company will continue to maintain and develop a through-life support capability at Telford, which will have the capability to respond to British Army urgent operational requirements.
MAJOR PROGRAMME UPDATES
Nimrod MRA4 PA02 achieves first flight
Just 110 days since the Nimrod MRA4 inaugural flight from Woodford, the second design and development aircraft, PA02, had a successful first flight from the same airfield on Wednesday 15 December. It landed at Warton around two hours later.
PA02 is arguably the most critical of all three design and development aircraft as it will test the aircraft's complex 'brain' - the mission system - and demonstrate the step change in capability over the current in-service Nimrod MR2. The third and final development aircraft, PA03, is due to fly mid-2005.
Eurofighter Tranche 2 signed
The four partner nations signed an international contract for Tranche 2 of Eurofighter Typhoon on 14 December 2004. This is excellent news for both the RAF and industry, and represents the achievement of another major milestone for Typhoon.
Type 45
December saw the milestone event of the transfer of Block A from Govan to Scotstoun, which was the largest block move to date on the Type 45 build programme. Steady progress is also being made with regards to Blocks B/C and D and outfitting.
Astute design accepted
The design of the Astute class of submarines has passed the final stage of a new review process aimed at improving the quality and maturity of the CAD model and reducing change and rework.
The whole boat review completed the process and has led to the Ministry of Defence conditionally accepting the whole boat arrangement - a key de-risking milestone.
Astute Integration Facility
The new integration and test facility has opened on schedule at Submarine's Barrow site and work has begun on assembling and setting to work key items of the combat system for the Astute submarine.
The equipment will be ready for installation and integration on the boat's Command Deck Module when the module is delivered to the new facility at the end of February. Carrying out assembly, installation and integration in the facility instead of on board the submarine will save some five months on the combat systems programme.
Harrier major milestones met
During November, three major Harrier milestones have been met by the Joint Force Operations project.
- The first GR9 aircraft to go through the pilot Harrier modification programme (HMP3) at Warton has been returned to the RAF for evaluation, two months early.
- Design authority clearance (DACPA A) for the initial Harrier GR9 capability has been issued.
- The first GR7 aircraft to be upgraded to GR9 standard at RAF Cottesmore has entered the Joint Upgrade and Maintenance Programme (JUMP).
BAE SYSTEMS CONTRACT AWARDS THIS MONTH
Satellite based tactical communications system program
CS&S Australia’s Information Architectures business has signed a contract worth AU$14.5m to enhance the Australian Defence Force’s mobile military communications capability. Under the contract CS&S Australia will provide the Australian Defence Force with 26 high bandwidth compact transmit and receive terminals.
Major order for Land Systems Hägglunds
BAE Systems Land Systems Hägglunds has won a 749 million euro (approx £500m) order from the Netherlands for its CV90 armoured vehicle. The Netherlands Army and Land Systems Hägglunds signed a contract for the delivery of 184 infantry fighting vehicles on 13 December.
Land Systems Hägglunds’ CV9035 was selected for the Dutch infantry fighting vehicle programme after an extensive competitive evaluation. The outcome of the evaluation shows that the CV90 fulfils the requirements, has the lowest risk, the lowest price and the fastest delivery time. Deliveries will be made during the years 2007 and 2010.
Low band transmitter contract from US Navy
The U.S. Navy has awarded Information & Electronic Warfare Systems (IEWS) a $4 million contract for improvements to the Low Band Transmitter (LBT). The LBT, part of the ALQ-99 Tactical Jamming System which is installed on the Navy’s EA-6B aircraft, is designed to provide protection for strike aircraft, ground troops and ships by jamming enemy radar and communications signals.
LPD support success
Submarines has won a contract for a support role on the Barrow-built Landing Platform Dock assault ships, now in-service with the Royal Navy. It involves making recommendations to the LPD Integrated Project Team on issues such as support packages and design upgrades.
F124 software contract
BAE Systems’ German subsidiary ATLAS ELEKTRONIK was awarded a contract for software maintenance of the German Navy’s F124 frigates. A consortium comprising several German companies with ATLAS as one of the partners succeeded in winning the competition. The first work package within a total five year framework commenced December 1 and will be completed after 18 months.
INTERNATIONAL PARTNERSHIPS - AMS
UK Submarine Command System contract
In November, AMS signed a contract with the UK Ministry of Defence Attack Submarines Integrated Project Team (ASM IPT). The five-year contract is for the installation, setting to work and fitting of the PC based command system, Submarine Command System New Generation (SMCS NG) on Swiftsure, Trafalgar and Vanguard submarines.
AMS’s Nautis is contracted for UK Royal Navy Mine Hunters
In November, AMS signed a contract with the UK Ministry of Defence, Mine Counter Measures Vessels Integrated Project Team (MCMV IPT). The Single Role Mine Hunter (SRMH) contract is for the introduction of Nautis 3 Software and Hardware Command System to the UK Royal Navy’s Hunt Class Mine Hunters.
INTERNATIONAL PARTNERSHIPS - GRIPEN INTERNATIONAL
SAAB takes increased marketing responsibility for Gripen
SAAB and BAE Systems have jointly decided to develop further the co-operation regarding the Gripen export business. SAAB will take the responsibility for Gripen International's efforts to win new Gripen export business, as it is now appropriate for SAAB to take the lead for these activities.
Gripen is now well established in the export market, with orders from South Africa, Hungary and the Czech Republic, for a current total of 56 aircraft.
In recognition of these changes, BAE Systems will reduce its current 35% shareholding in SAAB AB, retaining at least 20% as a long-term investment.
INTERNATIONAL PARTNERSHIPS – MBDA
Meteor trials in Spain
Trials have commenced on the six-nation Meteor beyond visual range air-to-air missile that
are designed to provide evidence to support the airworthiness clearance for the missile prior
to the Air-Launched Demonstration firing in 2005.
