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Ceradyne (NASDAQ:CRDN)
and Ideal Innovations (I3) are teaming with Oshkosh Truck Corp.
(NYSE:OSK) to provide a truck chassis for the Bull
armored vehicle. Ceradyne and I3 developed the Bull addressing
the more demanding protection requirements tto be addressed
by MRAP II vehicles. With its main competitors, International
Engines and Trucks and Armor Holding's Stewart & Stevenson
contracted to produce hundreds of MRAPs,
Oshkosh was left behind with a relatively small involvement
in one of the Pentagon's largest acquisition programs in recent
years. The new teaming will enable the Oshkosh to regain a major
role in the next phase of the program, offering a mature platform
and large production capacities.
DRS Technologies, Inc. (NYSE: DRS) today announced
that it would record a pretax operating charge of about $37
million, related to the Thermal Weapon Sights II (TWS II) program
when it reports its fiscal 2008 first quarter results on August
9, 2007, due to recent design modifications and write-off of
existing inventory that can no longer be utilized on the program.
Rockwell
Collins, Inc. (NYSE:COL) reported a 21% increase in its
income (totaled $146 million) from sales of $1.113 billion,
a 149 million increase over the last year's third quarter ended
on June 30. The company raised its projections for the full
fiscal year 2007 outlook promising, derived mainly on strong
commercial aerospace market conditions and better than anticipated
third quarter sales of commercial systems. In the government
Government Systems, Rockwell Collins recorded sales of $568
million in the past quarter, an increase of $69 million, or
14%. Defense electronics systems sales generated $375 million.
Defense communications sales increased $29 million (18%), to
$193 million with accelerated work on JTRS radios and other
networked communication.
L-3 Communications
(NYSE: LLL) today reported second quarter 2007 net income
of $188 million and diluted earnings per share (EPS) of $1.49,
compared to $50 million, or $0.40 in the 2006 second quarter.
Net sales increased 10.5% to $3.4 billion, and the funded backlog
is now at a $9.4 billion record level. Consolidated net sales
have increased by $324 million reaching $3.4 billion up from
$3.1 billion for the 2006 second quarter.
Raytheon Earnngs Surge After
Sale of Aircraft Division
Raytheon Company
(NYSE:RTN) reported an income from continued operations of $356
million or $0.79 per diluted share second quarter 2007, compared
to $276 million or $0.61 in the second quarter 2006. The increase
was attributed to improvements in operations and market conditions.
The quarter's total income reached $1.335 billion, reflecting
almost one billion peak reflecting the cash received for Raytheon
Aircraft Company
Elbit Acquires UK Based Ferranti
Tech. for £15 million
Elbit Systems
Ltd. (NASDAQ: ESLT) completed the acquisition of UK based
Ferranti Technologies (Group) Limited ("FTL"). Elbit
acquired FTL's entire share capital for £15 million (approximately
US$31 Million). FTL is the second acquisition Elbit made in
the UK. Together with U-TacS, a UAV Systems company established
with Thales UK and UEL, the UAV engines' company, the acquisition
will strengthen the Group's presence in the European and UK
important market. FTL designs and manufactures electronic, power
and control solutions for aerospace and defense systems.
Boeing's Integrated Defense
Systems - Operations Improved
Boeing's
defense operations are improving - reflected in the company's
quarterly report released today, Boeing's Integrated Defense
Systems (IDS) unit, demonstrated a small 3% growth but represented
a major increase in earnings and operating margin. At quarter-end
the unit's backlog was $70.5 billion. Q2/07 revenues of the
IDS unit were $8.0 billion, with operating earnings of $854
million, reflecting an operating margin of 10.7%. In comparison
- Boeing's commecial operations made 8,707 in revenues with
earnings of $960 million.
General Dynamics: Strong Earnings,
Sales Growth
General
Dynamics (NYSE:GD) today reported 11% growth in revenues
($6.6 billion) and 23% increase in earning per share (EPS) from
its second-quarter 2007 operations. GD's net earnings were $518
million, ($1.27 earning per share - EPS), compared to $420 million
($1.03 EPS) in the second quarter of 2006. Operating margins
were about 11.5%. Revenues increased to $6.6 billion in the
quarter, rising 11.1 percent over second-quarter 2006 revenues
of $5.9 billion.. For the first six months of 2006 GD generated
$927 million in free cash. Business has been growing for a while
for GD, reflected by the funded backlog, which, at the end of
the second quarter 2007 was $35.4 billion, and a total backlog
of $44.6 billion, compared to $34.5 billion and $43.6 billion,
respectively, at the end of the first quarter of 2007.
Growing Demand for Specialty
Metals Benefits ATI
Specialty metal producer Allegheny
Technologies Inc. (ATI) provided an insight into the aerospace
and defense supply chain, as the company released its Q2 report.
In the past 6 months the ATI's earnings increased over 60%,
to $404.3 million on sales of 2.84 billion. “Over 63%
of [our] year-to-date sales were generated by our key growth
markets namely aerospace and defense, chemical process industry,
oil and gas, and electrical energy. These key markets remain
strong." Said Patrick L. Hassey, Chairman, President and
Chief Executive Officer. “We think we have good visibility
into the demand from the aerospace market, and we believe ATI
is very well positioned to benefit from exciting growth prospects
in this market for many years.
iRobot Reafirm Projected
Turnaround by Second Half of 2007
iRobot Corp.
(NASDAQ:IRBT) continues to experience grow its revenue, responing
to the increased in demand for its military products. The company
reafirmed its previous guidance for the full year at a slightly
higher level of revenues and pre-tax profit.
EO Payloads Stabilize FLIR's
Earnings
FLIR Systems,
Inc. (Nasdaq:FLIR) reported today its revenues for the 2nd
quarter of 2007 were $184.3 million, up 33% compared to second
quarter 2006 revenue of $138.6 million. Net income for the quarter
was $29.1 million, ($0.38 earning per share (EPS), compared
to $0.28 EPS last year. FLIR's Government systems division's
revenue increased 45% to $90 million, driven by all segments,
including airborne, land and maritime electro-optical systems
applications. FLIR has increased its earning projections for
2007, and is now expecting net revenue in fiscal 2007 to be
in the range of $730 million to $750 million.
Lockheed Martin Reports
34% Earnings Increase
Lockheed
Martin Corporation (NYSE:LMT) today reported a sharp rise
in earnings 34% for the second quarter 2007. Its earnings totalled
$778 million in the quarter ($1.82 per diluted share), compared
to $580 million ($1.34 per diluted share) in 2006. The increased
its expectations for earning per share level for the whole year
to the range of $6.65 - $6.80, an increase of $0.45.
The main contributor to this increase was LM's
Aeronautics unit, which improved its profit by 39%, contributing
about a third of the total sales in the quarter ($3.1 billion).
The improvement reflects increased production volumes and sales
of combat aircraft, specifically the F-22
and F-16 programs as well
as sustainment and support activities. The company's Net sales
increased only 7% over second quarter 2006 sales to $10.7 billion.
Cash from operations for the second quarter of 2007 was $1.4
billion.
Northrop Grumman Q2:
Improving Profits, Cash
Northrop
Grumman (NYSE:NOC) announced today its financial results
for the 2nd quarter of 2007, reporting net income increase by
7% to $460 million, operating margin increase of 9% Percent
(to $744 Million) reflecting 9.4% Percent of Sales, which grew
by 4% to From sales of $7.9 Billion. During the reported period
the company generated $741 Million in cash from operations,
a significant increase from $638 Million in last year's second
quarter. The company's backlog now stands at $60.4 Billion.
"Sales growth, higher segment operating margin, and lower
corporate expenses drove this quarter's earnings increase"
said Ronald D. Sugar, Northrop Grumman chairman and chief executive
officer. He said the company is on track with its guidelines
and, based on year-to-date results, he expects "both cash
from operations and free cash flow to be in the upper end of
our 2007 guidance range".
All the company's business units increased their
operating margins, with Information & Services outperforming
all other units with 15% increase. Yet, the Aerospace unit's
sales declined 6% from the prior year period, due to lower volume
in the Integrated Systems division, reflecting changing status
of some of its major operations, including E-2D, F-35
and EA-18G, the J-UCAS
program nearing completion and planned reductions in the E-10A
platform and related MP-RTIP efforts.
Electronics unit operations increased by 7%, mainly
from Army and some classified programs, however, it was negatively
affected by about $50 million from contract earnings adjustment
of elements related to the F-16 Block 60 fixed price development
program, ASPIS II EW and MESA radar systems. Second quarter
2007 shipbuilding and naval operations sales declined 5% from
the prior year period due to lower volume in the DDG 51 and
LHD programs which also suffered from the strike at the company's
Pascagoula, Miss. Shipyard.
Ceradyne
– Keeping the Momentum for The Long Run
Ceradyne
(Nasdaq: CRDN) reported a strong second quarter, with sales
rising 14.4% to 185.4 million (from 162 million in Q2/06. Gross
profit was 41.7%, up from 39.3% and net income increased by
31.5% to 38.3 million ($1.38 per diluted share). However, new
bookings in the second quarter were significantly lower than
last year, reflecting a drop of about 50 million in the company's
backlog. Joel P. Moskowitz, Ceradyne president and chief executive
officer, explained that the company is following its long range
strategy of global diversification, particularly regarding non-defense
applications and advanced technical ceramic products.
Ceradyne is also looking at the longer term regarding the MRAP
program. Last month Ceradyne provided its new armored vehicle,
the BULL, designed to meet
MRAP II requirements, including protection against the more
sophisticated IED (improvised
explosive devices) threats such as EFPs
(explosively formed penetrators). "we believe there
is substantial congressional and military interest in this unique
vehicle." Said Moskowitz. Ceradyn's lightweight armor materials
are currently undergoing US Army evaluations testing their adherence
to the Army's Long Term Armor Strategy (LTAS) requirements.
This program introduces mandatory baseline requirements for
all future tactical wheeled vehicle fleet. "We believe
that this selection of our LTAS solution could lay the groundwork
for future military vehicle requirements that must conform to
LTAS." Moskowitz commented.
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