23 Jun 14. Rostec announces 2013 revenues of USD30bn. Russian Technologies (Rostec), the state-owned holding group for Russia’s defence industry, had consolidated revenues of RUB1.04trn (USD30bn) and made a profit of RUB40bn in 2013, according to financial results released by the company on 20 June. The key areas of growth were defence electronics (primarily through its KRET concern) and aviation, the company said, with revenues increasing by 14% and 15%, respectively. Rostec’s sales to export markets were a record high of RUB255bn. Rostec also highlighted its increased investment in research and development, stating that it had risen by 41% over 2012 to RUB133bn. These investment funds were received from both the budget and extrabudgetary sources and were mainly directed at the implementation of complex investment projects, modernisation, reconstruction, and modernisation of production facilities, as well as developing new products and conducting research and development activities, it stated. (Source: IHS Jane’s)
26 Jun 14. Alcoa to buy Firth Rixson for $2.85bn. Alcoa, the US aluminium maker, on Thursday took a significant step in its efforts to diversify out of commodity smelting when it announced a $2.85bn takeover of Firth Rixson, a UK-based supplier of aerospace parts. Alcoa, the US’s largest aluminium producer by revenues, has acquired aerospace part makers and expanded its automotive business to reduce its dependence on the world market for commodity aluminium, which has been depressed by excess capacity in Russia and China. The US auto market, the world’s second-largest by sales, has been growing strongly since 2010, while a strong commercial jet order book is sharply increasing demand for aircraft components. Firth Rixson’s revenues were expected to grow from $1bn in 2013 to $1.6bn in 2016, Alcoa said. The company will acquire Firth Rixson, which is based in Sheffield, from Oak Hill, the private equity firm, for $2.35bn in cash and $500m in Alcoa shares. Oak Hill could earn a further $150m depending on Firth Rixson’s future results. Firth Rixson specialises in engine rings and other components for the hottest parts of jet engines. It uses mainly alloys of nickel and titanium, rather than aluminium. It employs about 870 people in the UK. “This falls right into our strategy of building Alcoa out into a lightweight metals innovation powerhouse, Klaus Kleinfeld, Alcoa’s chief executive, said.
The company was “very excited” about Firth Rixson’s technology, Mr Kleinfeld added. Firth had recently invested in equipment for isothermal welding of components, which allows them to withstand higher temperatures. Hotter engines are more efficient and consume less fuel. (Source: FT.com)
26 Jun 14. Saab still in on-going talks concerning an acquisition of ThyssenKrupp Marine Systems AB. In April ThyssenKrupp Industrial Solutions AG, a subsidiary of ThyssenKrupp AG, and Saab AB signed a non-binding Memorandum of Understanding concerning the sale of the Swedish shipyard ThyssenKrupp Marine Systems AB (formerly named Kockums) to Saab AB. The discussions are at a final stage but still ongoing. An agreement with ThyssenKrupp Industrial Solutions AG has not been signed. Further information will be announced when negotiations have ended and an agreement is signed. Saab has chosen to clarify the status of these discussions due to information published in the media.