30 Apr 12. DRS Technologies, Inc., a Finmeccanica Company, announced that it has realigned its operating structure to more effectively serve its military and commercial customers. The company has been reorganized into three new operating Groups:
– DRS Network and Imaging Systems (NIS) includes the DRS electro-optical and integrated sensor systems lines of business, and the development of networks that integrate such sensors in a broader tactical C4 environment. Terry Murphy will lead this organization as Group President.
– DRS Power, Environmental and Sustainment Systems (PESS) includes the DRS environmental systems, sustainment products, and power systems lines of business. Roger Sexauer will lead this organization as Group President.
– DRS Integrated Defense Systems and Services (IDSS) includes the DRS intelligence gathering, training systems, telecommunications services, and related lines of business as well as the legacy businesses of DRS Defense Solutions and DRS C3 & Aviation Group. Richard Danforth will lead this organization as Group President.
As part of this reorganization, DRS has committed to enter into a new Proxy Agreement with the Defense Security Service in the near term. This new Proxy Agreement will allow DRS and all of its subsidiaries to operate as a unified organization without restriction on the company’s eligibility to access classified information or compete for classified contracts. In addition to the new Group structure, DRS will be consolidating corporate functions currently based in Parsippany, NJ and Rockville, MD to its Crystal City headquarters in Arlington, Virginia. The company anticipates completing this consolidation of corporate functions by the end of the year.
DRS Technologies’ Chief Executive Officer, William J. Lynn, III, stated, “I am confident that these actions will make our organization much stronger, leaner, and more competitive. The employees of DRS are committed to exceeding expectations when it comes to delivering the highest quality products and services that our warfighters and peacekeepers need to successfully complete their missions.”
03 May 12. ATK (ATK) reported operating results for Fiscal Year 2012, which ended March 31, 2012. The company achieved full-year sales of $4.6bn, down five percent from the prior year, which is in line with its FY12 guidance. For the full year, net income was down 16 percent to $263m, compared to $313m in the prior year. Full-year earnings per share (EPS) were $7.93, compared to $9.32 in the prior year. Adjusted EPS increased to $8.78 from $8.65. The increase was driven by updated profitability expectations on energetics and other programs, and continued operating efficiencies, partially offset by margin pressures in the Security and Sporting group and reductions in sales volume in the Armament Systems and Aerospace Systems groups. Full-year operating margins were 10.7 percent. Orders for the year were $4.2bn. Full-year free cash flow was $250m, compared to $291m in the prior year. The current year included $75m of contributions to the company’s pension plans, compared to $8m the prior year. Sales of $1.3bn in the fourth quarter were up one percent from the prior-year quarter. Higher sales in the company’s Commercial Ammunition and Defense Electronics Systems businesses contributed to the increase, offset by lower sales in the Aerospace Systems and Armament Systems groups. Fourth quarter margins were 8.5 percent. Fourth quarter fully diluted EPS were $1.86, compared to $2.10 per share in the prior-year quarter. The lower EPS reflect the continued margin pressure in the Security and Sporting group, charges incurred for the company realignment, and higher pension expense, partially offset by updated profit expectations as ATK nears completion of energetics and other programs, as well as operating efficiencies. Orders in the fourth quarter were $1.5bn, a book-to-bill ratio of 1.1, driven by strong demand in the Security and Sporting