13 Jan 06. DRS Technologies, Inc. (NYSE: DRS) today announced that it is commencing a public offering, subject to market and other conditions, of $325 million aggregate principal amount of senior notes due 2016 and $250 million aggregate principal amount of senior subordinated notes due 2018. The notes are being offered pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission. DRS intends to use the net proceeds from the offering to finance its previously announced acquisition of Engineered Support Systems, Inc. (NASDAQ: EASI), to repay certain of Engineered Support Systems’ outstanding indebtedness, and to pay related fees and expenses
Jan 06. Chemring surges as Pentagon places a $150m decoy order. Shares in Chemring Group, a Hampshire-based maker of military counter-measures and pyrotechnics, surged nearly 18 per cent yesterday, following a deal to provide the US army with hundreds of thousands of decoys to protect helicopters and transport aircraft from missile attacks. Although the deal is small by Pentagon standards, expected to generate at least $150m (£85m) over three years, it was a huge contract for Chemring’s fast-growing US subsidiary, Alloy Surfaces, which is part of a countermeasures division that reported £79m in revenues last year.
In Afghanistan and Iraq, all three branches of the US military have become heavy users of Alloy’s decoys, which are special reflectors shot out the back of planes to confuse incoming missiles. The Pentagon remains concerned about protecting its transport planes and helicopters, which continue to be the victim of missile and small arms fire in both countries. Last year, Alloy built a second plant near Philadelphia to accommodate new demands from the US navy and air force. The new contract provides US army underwriting for a third plant that will enable the company to expand capacity from 20,000 to 80,000 per month for the special countermeasures. It guarantees the army will buy at least 80,000 per month if the third plant is completed this summer. (Source: FT)
13 Jan 06. Lucent Technologies Inc. cut its revenue outlook for the current fiscal year, citing lower sales in the U.S. and China that will put its first-quarter total well below Wall Street’s consensus estimate.The company also named Frank D’Amelio, its current chief financial officer, as its new chief operating officer. Mr. D’Amelio, 48 years old, will retain the CFO post until a successor is named, Lucent said. The Murray Hill, N.J.,-based communications-equipment company, which has undergone a major restructuring, said it now sees revenue coming in flat to up in the low single digits on a percentage basis for the current fiscal year. Its prior projection was for growth in the mid-single digits. Lucent’s stock was down 6 cents, or 2.2%, to $2.65 in midday trading on the New York Stock Exchange Friday, after plummeting as low as $2.50 earlier in the session.
20 Jan 06. Eurocopter reported Jan. 18 a surge in sales in 2005 and said that revenues would grow by another 10 percent this year. Sales totalled 3.21 billion euros ($3.89 billion) in 2005, an increase of 15 percent from 2004.
Chief executive Fabrice Bregier told a press conference that growth in sales this year would be “at least 10 percent”, underlining that Eurocopter was aiming for sales of 4.0 billion euros in 2007-2008. ”Our ambition is to have sales of nearly 4.0 billion euros by 2007-2008, a doubling of our size in seven or eight years,” he said. The Eurocopter group is the biggest manufacturer of civil helicopters in the world, but 51 percent of sales in 2005 were from the military sector. The group, a subsidiary of the European Aeronautic Defense and Space Company, or EADS, was created in 1992 through a merger of the helicopter divisions of France’s Aerospatiale-Matra and Germany’s DaimlerChrysler Aerospace. (Source: Defense News)
17 Jan 06. Intel’s results miss expectations. Intel’s result