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11 Nov 16. DSME to receive additional funds to support restructuring. The main creditors of South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME) have pledged to inject additional funds worth KRW2.8trn (USD2.4bn) to support the company’s restructuring. The state-owned Korea Development Bank (KDB), which holds a 49.7% stake in the troubled shipbuilder, said it would inject KRW1.8 trillion, while the Export-Import Bank of Korea (Eximbank) will provide KRW1trn. The KDB said in a statement on 10 November that the funds from the two lenders would not be provided through cash but through several financial mechanisms including the conversion of debt into equity and the issuance of bonds. The KDB said the funds would “promote normalisation”, a term it uses to signal DSME’s extensive restructuring, which includes cutting jobs and salaries, selling off assets, and streamlining production activities. (Source: IHS Jane’s)
11 Nov 16. CAE sees ‘significant headroom’ for defence outsourcing. CEO Marc Parent says new threats mean militaries need to focus resources on active duty troops.
Growth at CAE continues to be driven by military simulation and training offerings, which compensated for sluggish civilian sales. Defence revenues at the Montreal-based provider increased to CAD253.2m (USD187.4m) during the last quarter, up 12% compared with the same period last year, momentum that could continue.
“There is significant headroom for growth, supported by secular trends, increased simulations training, and more outsourcing,” said Marc Parent, the company’s chief executive officer, in a call with analysts this morning. “The landscape is positive with budgets stabilising in the West, and the Middle East and Asia modernising and recapitalising defense systems [which] drive the need for training.”
(Source: IHS Jane’s)
11 Nov 16. Aselsan expands operations in Kazakhstan. Aselsan and Kazakhstan Engineering have deepened their collaboration in the defence industrial sector, with new work being given to local joint venture firm Kazakhstan Aselsan Engineering (KAE). In a ceremony on 10 November, officials from Aselsan and KAE signed an agreement that will see technology transferred to the joint venture to allow for the in-country production of APCO-25 compliant radio equipment. Work to be undertaken in Kazakhstan will include assembly of equipment, including circuit board-level work. KAE has been offering the 4700 family of Aselsan radio systems, which include a range of handheld, desktop, and mobile radio systems that operate across the analogue, trunk, digital, and encrypted ranges and VHF, UHF, and FM spectrums, as well as the Atlas portable radio system. (Source: IHS Jane’s)
10 Nov 16. Esterline Reports Fiscal 2016 Fourth Quarter and Full-Year Financial Results. Esterline Corporation (NYSE:ESL) (www.esterline.com), a leading specialty manufacturer serving the global aerospace and defense markets, today reported results for the 2016 fiscal fourth quarter and full year ended September 30, 2016. The company generated consolidated revenue of $543.8m in the fiscal fourth quarter, which was flat compared with the prior-year recast period. The Avionics & Controls segment had strong commercial aerospace and defense sales in the fiscal fourth quarter of 2016, which were offset by a sales decrease in Advanced Materials primarily related to a previously reported temporary plant shutdown. The results for our fiscal 2015 fourth quarter and fiscal year have been recast to the three months and twelve months ended October 2, 2015, respectively, in order to provide meaningful comparisons to prior-year periods.
Curtis Reusser, Esterline’s Chief Executive Officer, said, “We finished fiscal 2