27 Jul 05. UK’s Qinetiq Lines up Banks for IPO. QinetiQ has approached investment banks about leading an initial public offering (IPO) on the London Stock Exchange later this year, a person familiar with the matter said on July 27. The company, 31 percent owned by U.S. private equity firm Carlyle Group and 56 percent by the UK Ministry of Defense, has sent letters to 12 banks soliciting interest in leading the long expected flotation, the source said. The equity offering is expected to be worth £400m ($695.5m) to £500m, the FT said on July 27. A spokesman for QinetiQ said an IPO was being considered, but added: “No decisions have been made regarding timing or indeed the structure of any potential IPO.” The source said that Carlyle was expected to sell only part of its stake, although it was not yet known how much. The source also said QinetiQ was close to agreeing two U.S. acquisitions. Last September, QinetiQ bought two U.S. firms for a total of almost $300m, Westar Aerospace & Defense Group Inc. and Foster-Miller Inc. Chief Executive Officer Sir John Chisholm has said QinetiQ’s top aims this year include the UK defense market, the U.S. defense and
security markets and commercialization of defense technologies. Technology developed by QinetiQ includes scanning equipment that can spot stowaways on trucks, concealed weapons and dangerous debris on runways. Carlyle bought its stake in QinetiQ in 2003 and pledged an IPO within 5 years. Earlier this month the company posted a 33 percent jump in operating profit to £69.6 m on turnover of £872.4m for the year ended March 31. (Source: REUTERS)
26 Jul 05. EADS (FR:005730: news, chart, profile) said second-quarter profit rose 47% to €488m, with earnings before interest and taxes up 13% to 883 million euros, and revenue up 5.6% to €9.02bn. In the first half, EADS said it was boosted by Airbus deliveries climbing to 189 from 161 and a favorable dollar hedging rate. Improvements in its defense and space divisions as well as a better contribution from 46%-held Dassault Aviation also lifted results. For the year, EADS still sees EBIT exceeding €2.6bn, against €1.5bn in the first half, and revenue up to €33bn, with defense revenue up 10% to €8.5bn. Its earnings per share guidance for 2005 was raised to €1.50 a share, from a previous view of €1.36 a share, due to higher cash levels, though the guidance is contingent on the year-end U.S. dollar exchange rate. The revised guidance is also below the €1.58 a share predicted by brokers, according to Thomson First Call. EADS expects Airbus, Boeing Co.’s (BA: news, chart, profile) arch-rival, to deliver more than 360 aircraft in 2005, though the 2005 aircraft mix will be less favorable than in 2004. At the end of the first quarter, EADS had predicted deliveries of 350 to 360 aircraft.
28 Jul 05. ROLLS-ROYCE GROUP plc INTERIM RESULTS 2005. Group Highlights: Record order book, at £21.9bn (2004: £18.1bn); sales increased to £3,184m. Sales on an underlying* basis increased by 14 per Cent; services revenues increased by 15 per cent on an underlying basis and represented 55 per cent of Group sales; profit before financing costs increased to £401m; underlying profit before financing costs increased to £309m, up 44 per cent on a like for like basis; underlying profit before taxation increased to £260m, up 54 per cent on a like for like basis; average net debt reduced to £377m (2004: £626m); interim payment to shareholders increased by five per cent. The Group maintained a good level of order intake, resulting in a record order book of £21.9bn at the half year (2004: £18.1bn). In addition, a further £1.1bn had been announced (2004: £1.5bn) but not contracted. Orders for future services accounted for £8.2bn or 37 per cent of the firm order book at the half year (2004: £7.1bn or 39 per cent). Group sales in the first half of 2005 rose to £3,184m. Sales on an underlying basis increased by 14 per cent, reflecting the continuing growth of services revenu