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23 Jul 15. Rheinmetall, Thales Interested in Airbus Sensor Business. German defense group Rheinmetall (RHMG.DE) and French peer Thales (TCFP.PA) are among several groups interested in a defense electronics business that plane maker Airbus (AIR.PA) is selling in an effort to streamline its operations, sources familiar with the transaction said. The two companies as well as U.S.-based Raytheon (RTN.N) and a number of private equity groups including Carlyle (CG.O), Bridgepoint, CVC, KKR (KKR.N), KPS and Triton are expected to hand in tentative offers for the Airbus business by a Friday deadline, they said. The price tag on the sale, dubbed “Orlando”, which is led by investment bank Evercore (EVR.N), may reach up to 1bn euros ($1.10bn), the people said. (Source: glstrade.com/Reuters)
23 Jul 15. German aircraft engine maker MTU Aero Engines increased its 2015 revenue and profit targets on Thursday, thanks to the continuing strength of the U.S. dollar. MTU, whose customers include Boeing and Airbus, said it now expected 2015 revenues of around 4.6bn euros ($5.03bn) and adjusted earnings before interest and tax of about 430m, up from its previous forecast of 4.4bn euros and 420m euros. Ahead of the announcement, analysts’ average forecasts were already higher than the company’s previous guidance, predicting revenues of 4.67bn and profit of 430m. The euro has weakened almost 10 percent against the dollar this year and the rate is currently around $1.09. The new MTU guidance is based on an exchange rate of $1.10, whereas its previous forecasts were based on a rate of $1.20. MTU is benefiting from the weak euro because it does most of its business in the U.S. currency but reports in euros. The upgrade came as it announced second quarter results, posting adjusted EBIT of 115.1m euros on revenues of 1.102bn, against the average analyst expectation for profit of 106m euros and revenues of 1.103bn euros. (Source: Reuters)
22 Jul 15. Denel reports annual results. Denel posted improved financial results for the fifth year running, with revenue up 28% to ZAR5.85bn (USD473m), earnings before interest and taxes up 41% to ZAR399m, and net profit up 39% to ZAR270m. Export revenues were up 34% to ZAR3.04bn, representing 52% of the total revenue, and the order book is ZAR35bn, more than double the 2013 order book. Gross profit was 19.4% of revenue, operating profit 5.7%, and net profit 4.6%. Other financial indicators were also positive, with cash reserves up ZAR400m to ZAR1.91bn.
Denel invested ZAR467m into research and development and ZAR65bn into skills development, which includes bursaries for almost 100 engineering students and the training of 355 artisans at its own technical academy. (Source: IHS Jane’s)
21 Jul 15. OpenWorks Engineering Ltd officially launches into business and follows a rich tradition of exciting engineering start-ups in the North East of England. The founders of OpenWorks started their careers in the dynamic environment of the UK defence industry and are looking to take their experience delivering world-leading military products to the security and counter terrorism market. The company will launch with a range of non-lethal countermeasure products but will also be supporting high quality engineering projects through partnerships and consultancy.
Chris Down, OpenWorks’ Managing Director explained “The team pride themselves on being able to provide exceptional solutions. While we are developing our own product range, I believe that we have a unique combination of skills that can add value to other engineering businesses.”
A group of friends and colleagues, brought together by a passion for engineering, realised an opportunity to develop a range of products