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BUSINESS NEWS 25 Feb 05

22 Feb 05. Boeing is selling its Rocketdyne rocket unit to United Technologies’ (UTX:NYSE – commentary – research) Pratt & Whitney for about $700m. The cash deal is subject to regulatory approvals. In a news release Tuesday, Boeing said it expected to recognize a gain on the sale but declined to specify how much. Rocketdyne makes Delta rockets and booster engines for the Space Shuttle program. It employs about 3,000 people at sites in Alabama, California, Florida and Mississippi. Separately, Boeing said Tuesday it had agreed to sell commercial airplane manufacturing plants in Wichita, Kan., and Tulsa and McAlester, Okla., to Onex Corp. for about $900 million in cash. Onex is an investment group based in Toronto. The three plants, which employ about 9,000 workers, will supply parts of Boeing’s planned 787 Dreamliner jet, but they also will be able to bid for business with customers other than Boeing.

20 Feb 05. GD Spanish Unit Looks To Expand Missile Work. Executives of land systems company General Dynamics Santa Bárbara Sistemas (GDSBS), Madrid, say they plan to expand their missile business as part of an overall growth strategy. A key step in that growth could come from a decision this year by the Spanish Ministry of Defense (MoD) to launch a competition for anti-tank missiles for the Army, they said. Patrick Sullivan, general manager of GDSBS, said the MoD was expected to have selected the Spike anti-tank missiles for its ground forces by late last year, but that didn’t happen. Sullivan said the MoD has a requirement for roughly 3,000 missiles. Spanish defense officials confirmed a missile requirement, but did not elaborate. A senior Spanish MoD official confirmed the debate about a missile purchase, but said a decision would come only after a thorough competition that would consider alternatives to the Spike. (Source: Defense News/MARTIN AGÜERA, MUNICH)

17 Feb 05. Saab the 2004 Report
• Sales amounted to SEK 17,848 m. (17,250).
• Net income for the year was SEK 1,091 m. (746).
• Earnings per share amounted to SEK 10.08 (7.00).
• The proposed dividend per share is SEK 3,75 (3.50).
• Order bookings amounted to SEK 16,444 m. (19,606). The order backlog amounts to SEK 43 billion (46).
• Operating income amounted to SEK 1,657 m. (1,293) and income after financial items was SEK 1,511 m. (1,073).

24 Feb 05. EDO Corp., said on Thursday that earnings more than doubled in the latest fourth quarter, due to significant revenue growth and improved gross margins. Net income rose to $14.2m, or 68 cents per share, from $6.5m, or 34 cents per share, a year ago. Revenue grew 24.6 percent to $169.1m from $135.8m last year. Analysts surveyed by Thomson First Call were looking for the company to post earnings of 44 cents per share on sales of $164m in the latest quarter. For the full year, EDO posted profit of $29.1m, or $1.49 per share, up sharply from $14.8m, or 84 cents per share, in fiscal 2003. Revenue climbed 16.4 percent to $536.2m from $460.7m last year. Analysts had forecast profit of $1.25 per share on revenue of $531.2m. Total funded backlog of unfilled orders at Dec. 31 increased to $474.6m from $462.3m at Dec. 31, 2003. Backlog does not include portions of contracts for which the U.S. government has not yet appropriated funds, nor does it include unexercised options in any contract. EDO said gross margins increased slightly to 26.7 percent of revenue in 2004 from 26.6 percent in 2003. For the fourth quarter, the gross profit margin was 27.4 percent of revenue, up from 23.1 percent in the prior year. Looking ahead, EDO estimates that revenue for fiscal 2005, excluding any acquisitions, will be in the range of $585m to $600m. Analysts currently predict 2005 revenue of $603.1 million.

23 Feb 05. Electronic Data Systems Corp. expects that new contract signings and a turnaround in its large U.S. Navy modernization contract will more than offset declines in business with General Motors Corp., its largest cus

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