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July 2007 (past reports)

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Ceradyne, I3 and Oshkosh Team to run the Bull for MRAP

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 Writes Off $37 Million on TWS II Program Modifications

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 Earnings Grow by 23%

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.

With Sales Increased, L-3 reports a 9.3 billion record Backlog

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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