19 Oct 06. Armor Holdings, Inc. (NYSE: AH), announced today financial results for the third quarter ended September 30, 2006. For the third quarter ended September 30, 2006, the Company reported revenue of $563m, an increase of 26%, compared to $448m in the third quarter last year. Net income for the third quarter was $21m or $0.58 per diluted share, versus $26m or $0.74 per diluted share in the third quarter last year. Excluding the impact of the Stewart & Stevenson acquisition and a number of other operating and non-operating items in both periods, net income and diluted earnings per share were $27m and $0.75 per share, respectively, for the three-months ended September 30, 2006, compared to $38m and $1.05 per share, respectively, for the prior year period. Following this press release is a reconciliation of net income as reported to pro forma net income for the three-months ended September 30, 2006 and 2005.
22 Oct 06. Britain would not prevent BAE Systems, the country’s biggest defence manufacturer, from becoming a US company – provided it retained a critical presence in the UK – the minister in charge of Britain’s £16bn arms acquisition budget has signalled. The company, which is seeking to boost its US business, has repeatedly indicated it could shift its domicile across the Atlantic.
The comments in a Financial Times interview with Lord Drayson, the defence procurement minister, are the first indication from a government official that the government would not stand in its way. Lord Drayson said such a shift would be a matter for shareholders. The government’s concern was only to maintain British manufacturing capabilities and access to technology. He said the government was determined to keep the skills and capabilities within the country to make sure Britain maintained a healthy defence industry that could manufacture, maintain and upgrade equipment of strategic importance. But where the owners of those companies resided did not matter. Asked whether it would concern the government if BAE moved, Lord Drayson said: “I think questions like that are a matter for shareholders of BAE. “From the point of view of the customer, what we would be very concerned to see is that there would be no negative impact on the company’s ability both to supply us and to support the equipment it already has [supplied],” he said. So we’d be concerned about issues relating to technology transfer, to issues relating to capabilities and skills in the future.” “These are the issues that we are focused on.” The government still holds a £1 golden share in BAE, formerly British Aerospace, and can stop anyone buying more than 15 per cent of its stock. (Source: FT.com)
Comment: there were howls of indignation from BAE when the Editor picked up this story last year, fierce denials were issued stating that the Company was committed to U.K. Well times have changed and the Company is now committed to the U.S. The huge donation of £250,000 to the Tank Museum last month was believed to have been a sop to the MoD who were furious that BAE’s struggling U.K. Land Systems business was being controlled from the USA. This announcement comes as at a time when BAE has laid on a media visit to its U.S. plants, no doubt to bolster the share price! A U.S. listing would create millionaires out of the Main Board and other directors and any subsequent sale to Boeing would be a very nice farewell present. Deals in the offing include the possible sale of its MBDA sale post-Saudi deal and the shipbuilding deal. As BAE does not like JVs, will the company sell out to VT and close its Clyde yards for building as we suggested earlier this year? A piece on BBC Scotland last week praised the housing boom on the Clyde stating that it had created 50,000 jobs; Govan is the next stop upstream. BAE wants to keep the nuclear business at Barrow and this could be brought in with DML with VT taking surface ship work. Watch out for a deal with Boeing over the Hawk trainer.