14 Mar 19. Thales sets to 28 March 2019 the end date of the acceptance period of its offer for Gemalto.
- Thales has decided to waive the Offer Condition with respect to the antitrust and foreign investment Regulatory Clearances in Russia
- All other Regulatory Clearances have already been obtained
- The Acceptance Period shall end at 17:40 CET on Thursday 28 March 2019
- Offer price: €51 per share
If the offer is declared unconditional, the settlement is expected to occur on 2 April 2019
13 Mar 19. Rheinmetall benefiting from continued growth at Defence – Group anticipates further sales and operating result growth for 2019.
- Consolidated sales (before currency effects) forecast to rise between 4% and 6%
- Operating margin at Group level of approximately 8% anticipated
- Automotive expects a stable level of sales and an operating margin of approximately 8%
- Defence anticipates sales to rise (before currency effects) by between 9% and 11% with the operating margin improving to 8.0% to 8.5%.
- Consolidated sales up 4.3% at €6,148m
- Consolidated operating result up 23% at €492m
- Earnings after taxes rise by €102m to €354m (+ 40%)
- Order backlog at Defence reaches new record of €8,577m
- Dividend to be raised by 24% from €1.70 to €2.10
Rheinmetall AG is forecasting further growth in organic sales at Group level and a corresponding increase in operating result for fiscal 2019. Primarily driven by continued dynamic development in the Defence sector, the technology corporation’s annual sales are set to grow organically by 4% to 6% in the current fiscal year. For the Automotive sector, Rheinmetall expects a stable level of sales, despite significant market uncertainties.
At the same time, the operating margin forecast for the Group will remain stable at 8% on a par with the previous year (fiscal 2018).
Armin Papperger, Chief Executive Officer of Rheinmetall AG: “Rheinmetall remains on track for profitable growth. We want to increase our overall sales even further and anticipate another increase in earnings. At Defence, the trend toward stepping up the modernization of armed forces linked to the rising budgets is already evident in our order books. Our broad technological positioning means that we are in an ideal position to play a leading role in the modernization of armed forces in Germany and other partner countries.
At Automotive, we cannot entirely avoid the partly declining development on the global markets, but we will continue to benefit from rising demand for environmentally friendly mobility with our products for reducing consumption and emissions. At the same time, we are selectively expanding our e-mobility activities, so that we can play an increasingly important role here, too.”
Strong growth in operating result – proposed dividend of €2.10 per share
The Rheinmetall Group generated sales of €6,148m in fiscal 2018, an increase of 4.3% compared with the previous year’s figure of €5,896m. When adjusted for currency effects, the growth is 6.1%. Sales growth was driven by both corporate sectors. At 72%, the international share of consolidated sales in fiscal 2018 was down slightly on the previous year (76%). Operating result (EBIT before special items) climbed by 23% to €492m after €400m in the previous year. The Group’s operating margin rose to 8.0% (previous year: 6.8%).
The Defence sector achieved an operating result of €254m, 46% above the previous year’s figure of €174m. Rheinmetall Automotive also increased its operating result. At €262m, the figure was up 5.2% compared with the previous year’s figure of €249m. Special items resulted from restructuring costs at two Defence locations (€-7m) and from real estate transactions (€+33m) at the Berlin site and in connection with a former production facility in Hamburg. Including these special items and after deduction of €24m in holding costs for Rheinmetall AG, reported EBIT for the Group amounts to €518m.
At Group level, earnings after taxes amounted to €354m in the past fiscal year after €252m in 2017. This represents growth of approximately 40%. Including the earnings attributable to non-controlling interests, earnings per share for 2018 amount to €7.10 (2017: €5.24).
The Executive Board and Supervisory Board will be proposing a dividend of €2.10 per share at the Annual General Meeting on May 28, 2019. This corresponds to a payout ratio of approximately 30%. A dividend of €1.70 per share was paid in the previous year.
Automotive at a new earnings high – operating margin increased to 8.9%
Rheinmetall Automotive again enhanced its business volume in an increasingly challenging market environment in 2018, generating sales of €2,930 m, an increase of €69 m or 2.4% compared with the previous year. When adjusted for currency effects, the growth is 4.2%. By comparison, the global production of light vehicles declined by 1.1% in 2018.
All three divisions once again recorded year-on-year sales growth. Declining demand for diesel products for the light vehicles market was offset, among other things, by new product launches and growth in business with other product groups (including commercial diesel systems, large-bore pistons and gasoline drives). Sales of the Mechatronics division rose by 2.7% to €1,664 m in 2018, owing to a further increase in demand from automotive manufacturers for solutions to reduce fuel consumption and emissions and dynamic growth in business with commercial vehicles. The Hardparts division expanded its sales by 2.2% to €989 m, largely owing to the positive development of business with large-bore pistons and pistons for trucks and off-road vehicles. The Aftermarket division expanded its worldwide replacement parts business by 2.2% to €367m.
The regional distribution of sales for fiscal 2018 remained virtually unchanged year-on-year. The share of sales generated with customers abroad totaled 80% (previous year: 81%). The joint ventures operated with a Chinese partner in China and Germany are accounted for using the equity method and are therefore not included in the sales of Rheinmetall Automotive. Sales of these companies totaled €1,193m in fiscal 2018, which corresponds to a year-on-year growth of 2.6%, or 4.4% after adjustment for currency effects.
Operating result of Rheinmetall Automotive (EBIT before special items) came to €262m for the last fiscal year, a new record in the company’s history. This is growth of €13m or 5% compared with the previous year’s figure of €249m. The sector’s operating margin rose to 8.9% (previous year: 8.7%), which also represents a new record.
Defence significantly increases result – major orders bring record order backlog
Defence increased its sales by €185m or 6.1% to €3,221m in the reporting period after €3,036m in the previous year. When adjusted for currency effects, the growth was 7.9%. Among other factors, sales growth was due to increased deliveries of trucks for the major project Land 121 in Australia and to the fact that series production was being utilized to full capacity for the Puma infantry fighting vehicle for the German armed forces. In addition, the start-up of the major project Future Soldier System – also with the German armed forces – contributed to a significant increase in sales in the Electronic Solutions division. The Weapon and Ammunition division, in contrast, suffered a year-on-year drop in sales of approximately 10% or €119 m in 2018, owing to the loss of trading sales.
In 2018, the sector’s order intake reached nearly twice the previous year’s figure. In fiscal 2018, Defence posted orders worth €5,565m, after €2,963m in the previous year. This is growth of €2,602m or 88%, which resulted primarily from two high-volume orders for the Australian armed forces. The order for 211 Boxer vehicles for the Australian armed forces stands out here in particular, as it marks the largest single order in the company’s history, with a total value of approximately €2.1bn. The book-to-bill ratio was 1.7 in 2018 (previous year: 1). The individual divisions of the Defence sector likewise demonstrated their future growth potential with a respective book-to-bill ratio of over 1.
The order backlog increased significantly to a new record of €8,577m, which equates to growth of 34% after €6,416m in fiscal 2017. The Defence sector also significantly increased its earnings. Operating result (EBIT before special items) amounted to €254m in the past fiscal year, soaring by €80m or 46% compared with the previous year. Special items of €-7m – resulting from restructuring expenses in the Electronic Solutions division – led to reported EBIT of €247m for the fiscal year. This significant improvement in results was achieved thanks to the positive performance of the Electronic Solutions and Vehicle Systems divisions in particular. Both divisions increased their operating results by more than 100% year-on-year, which was due above all to improved utilization of capacity and organic growth in both areas.
Rheinmetall Defence’s operating margin rose to 7.9% in fiscal 2018, significantly exceeding the previous year’s figure of 5.7%.
Rheinmetall continues on its growth trajectory
Rheinmetall expects another organic growth phase for the Group in the current fiscal 2019. Rheinmetall AG’s annual sales are expected to grow organically and before currency effects by 4% to 6% in the current fiscal year, based on €6.1 bn in fiscal 2018. This sales growth is driven by dynamic development in the Defence sector. By contrast, due to the general market development, perceptible growth contributions from the Automotive sector are not to be expected in fiscal 2019.
Sales performance in the Automotive sector is strongly influenced by the economic development in the automotive markets of Europe, North and South America and Asia, as well as by an anticipated, perceptible market recovery in the second half of the year. In the context of a currently cautious market expectation for the Automotive sector, for the year as a whole Rheinmetall anticipates for the Automotive sector a generally stagnating to slightly positive sales performance before currency effects.
Rheinmetall anticipates sales will climb by between 9% and 11% for the Defence sector in fiscal 2019, which is already assured based on relatively high coverage through the existing order backlog.
Further absolute improvement in earnings expected in fiscal 2019
Rheinmetall expects an operating margin of approximately 8% for the Automotive sector in fiscal 2019, based on the anticipated market development and the sales forecast derived from this. Rheinmetall anticipates a further improvement in operating result in the Defence sector in 2019 and expects an operating margin of between 8.0% and 8.5%.
Taking into account holding costs, the Rheinmetall Group’s operating margin comes to approximately 8%.
13 Mar 19. Magellan Aerospace Corporation Announces Financial Results. Magellan Aerospace Corporation (“Magellan” or the “Corporation”) released its financial results for the fourth quarter of 2018. All amounts are expressed in Canadian dollars unless otherwise indicated. The results are summarized as follows:
A summary of Magellan’s business and significant updates
Magellan is a diversified supplier of components to the aerospace industry. Through its wholly owned subsidiaries, Magellan designs, engineers, and manufactures aeroengine and aerostructure components for aerospace markets, advanced products for defence and space markets, and complementary specialty products. The Corporation also supports the aftermarket through supply of spare parts as well as performing repair and overhaul services.
Magellan operates substantially all of its activities in one reportable segment, Aerospace, which is viewed as one segment by the chief operating decision-makers for the purpose of resource allocations, assessing performance and strategic planning. The Aerospace segment includes the design, development, manufacture, repair and overhaul, and sale of systems and components for defence and civil aviation.
On November 5, 2018 Magellan announced it had extended its agreement with Airbus for a further six years for the manufacture of A350 XWB centre wing box and keel beam detail parts. It is estimated that revenue generated from this work package will exceed $140 m dollars over the term of the contract. The package consists of a number of large structural, machined components, and will be manufactured by Magellan in the United Kingdom and supplied to the Airbus assembly facility in Nantes, France.
The Corporation announced on February 19, 2019 the opening of its new manufacturing and assembly facility in India. The 100,000 square foot Magellan Aerospace (India) Pvt. Ltd. facility, constructed on seven acres in Hitech Defence and Aerospace Park (Aerospace SEZ Sector) in Devanahalli, India, near the Bangalore International Airport, was completed at the end of 2018 and the process of installing and commissioning of high speed machining centres is underway. Magellan’s new cellular machining and assembly plant will specialize in high speed milling and turning of aerostructure and aeroengine components produced from both aluminium and hard metal materials. Combined with comprehensive processing and hard metal machining capabilities from Magellan’s two longstanding joint ventures in India, API Surface Treatments and Triveni Aeronautics Pvt. Ltd. (“Triveni”), Magellan will be one of the largest suppliers of “Make in India” manufactured commercial aircraft components.
On February 20, 2019 Magellan announced it has increased its investment in Triveni to 75%. Triveni specializes in hard metal machining of aeroengine and aerostructure components. Magellan’s investment in Triveni commenced in 2013 when it acquired a 49% share of the business. Since then Triveni has grown, prospered and played a major role in Magellan’s overall strategy in India.
For additional information, please refer to the “Management’s Discussion and Analysis” section of the Corporation’s 2018 Annual Report available on www.sedar.com.
- Results of Operations
A discussion of Magellan’s operating results for fourth quarter ended December 31, 2018
The Corporation reported revenue in the fourth quarter of 2018 of $254.4m as compared to $232.6m in the fourth quarter of 2017. Gross profit and net income for the fourth quarter of 2018 were $43.9m and $29.6m, respectively, in comparison to the gross profit of $44.4m and net income of $31.9m for the fourth quarter of 2017.
Consolidated revenues for the three months ended December 31, 2018 were $254.4m, a $21.8 m increase from the $232.6m recorded for the same period in 2017. Revenues in Canada increased 12.2% in the fourth quarter of 2018 as compared to the fourth quarter of 2017, primarily driven by increases in production volume and repair and overhaul services and favorable foreign exchange impact due to the strengthening of the United States dollar relative to the Canadian dollar. On a currency neutral basis, Canadian revenues in the fourth quarter of 2018 increased by 10.4% over the same period of 2017.
Revenues in United States increased by 4.8% in the fourth quarter of 2018 compared to the corresponding period in 2017 when measured in Canadian dollars mainly due to favorable foreign exchange impact as a result of the strengthening of the United States dollar against the Canadian dollar. On a currency neutral basis, revenues in the United States increased 0.7% in the fourth quarter of 2018 over the same period in 2017.
European revenues increased 10.9% in the fourth quarter of 2018 compared to the same period in 2017 primarily driven by increased production volumes for single aisle aircraft and favourable foreign exchange impact as a result of the strengthening of the British pound relative to the Canadian dollar, and the strengthening of the United States dollar relative to the British pound. On a constant currency basis, revenues in the fourth quarter of 2018 in Europe increased by 7.5% compared to the same period in 2017.
Gross profit of $43.9m for the fourth quarter of 2018 was lower than the $44.4m for the fourth quarter of 2017, while gross profit as a percentage of revenues was 17.3% for the fourth quarter of 2018, a decrease from 19.1% for the same quarter in 2017. The gross profit in the current quarter was mainly driven by unfavourable product mix, offset by the favourable foreign exchange due to the strengthening of the United States dollar against the British pound and the Canadian dollar year over year.
Administrative and General Administrative and general expenses as a percentage of revenues were 5.6% for the fourth quarter of 2018, lower than 6.5% in the corresponding period of 2017. Administrative and general expenses of $14.3m in the fourth quarter of 2018 were lower by $0.7m as compared to the fourth quarter of 2017 due to lower employee expenses.
Other income of $10.0m for the fourth quarter of 2018 consisted of a net gain of $9.7m related to prior acquisitions and a $0.5m foreign exchange gain compared to a $0.2m foreign exchange loss recorded in the corresponding period of 2017. The movements in balances denominated in foreign currencies and the fluctuations of the foreign exchange rates impact the net foreign exchange loss or gain recorded in a quarter. (Source: Defense News Early Bird/https://www.newswire.ca)
14 Mar 19. Embraer Earnings Results 4th Quarter And Fiscal Year 2018.
Embraer delivered 33 commercial jets and 36 executive jets (24 light/ 12 large) in 4Q18, and in 2018 delivered 90 commercial jets and 91 executive jets (64 light/27 large); The Company’s firm order backlog increased to US$ 16.3bn at the end of 4Q18, including contracts of the Services & Support segment, up from the US$ 13.6 bn reported at the end of 3Q18;
Revenues in 4Q18 were US$ 1,670.9m and for fiscal year 2018 were US$5,071.1m, in line with the Company’s revised outlook of US$ 5.1bn disclosed on January 16, 2019;
Adjusted EBIT and adjusted EBITDA excluding special items were US$ 42.5m and US$ 108.1m, respectively, in 4Q18, yielding adjusted EBIT margin of 2.5% and adjusted EBITDA margin of 6.5%. Adjusted EBIT and adjusted EBITDA exclude a US$ 61.3m special item in 4Q18 related to an impairment in the Executive Jets segment;
For 2018, adjusted EBIT and adjusted EBITDA were US$ 223.8m and US$473.7m, respectively, excluding US$ 188.5m in total special items. The Company’s 2018 adjusted EBIT margin was 4.4% and adjusted EBITDA margin was 9.3%, below the initial outlook published in early 2018 but in line with the updated guidance published in mid-January 2019;
4Q18 Net loss attributable to Embraer shareholders and Loss per ADS were US$ (18.1)m and US$ (0.10), respectively. Adjusted net loss (excluding deferred income tax and social contribution and special items) for 4Q18 was US$ (6.6)m, with Adjusted loss per ADS of US$ (0.04). Embraer reported adjusted net loss in 2018 of US$ (54.2)m, for an adjusted loss per ADS of US$ (0.30);
Embraer generated Free cash flow of US$ 422.0m in 4Q18, finishing 2018 with an adjusted free cash flow usage of US$ 127.5 m, slightly better than the updated outlook from mid-January. The Company finished the year with total cash of US$ 3,207.8m and total debt of US$ 3,647.7m, yielding net debt of US$ 439.9m versus net debt of US$880.5m at the end of 3Q18;
The Company reaffirms all aspects of its 2019 guidance disclosed to the market on January 16, 2019.
Main financial indicators
12 Mar 19. EOS reports strong 2018 revenue growth. Australian remote weapon station (RWS) manufacturer Electro Optic Systems (EOS) reported a 200% growth in defence revenues year-on-year to AUD85 m (USD59.9 m) in 2018, and is expecting to achieve a further 100% growth in 2019 based on the current order backlog.
The company recorded an order backlog of AUD667 m as of 1 January 2019, providing confidence that it will achieve AUD170 m over this calendar year, and AUD250 m in 2020 and for the following two years without any new orders having to be made.
However, EOS is confident that it will secure sales over this period based on its position in the next-generation RWS for manned vehicles, which it says is not being sufficiently targeted by competitors. (Source: IHS Jane’s)
12 Mar 19. Oxford University Spin-Off Animal Dynamics acquires Accelerated Dynamics. Oxford-based unmanned aerial systems startup Animal Dynamics has acquired another UK-based company, Accelerated Dynamics, which has developed ADx, an AI platform for drone fleet management.
Animal Dynamics, which raised £6 m in funding last November, builds “bio-inspired” unmanned aerial vehicles (UAVs). Its main products, Skeeter and Stork, are designed after the flight mechanics of dragonflies and birds, respectively.
“Integrating the Accelerated Dynamics ADx Platform Skeeter will be able to operate as a fleet of drones for applications such as survey inspections, defence and crop management for farms,” Animal Dynamics stated.
Stork, on the other hand, “will support sophisticated deployments of supplies and equipment in humanitarian aid, emergency response and extreme logistics scenarios” when used in conjunction with ADx. (Source: UAS VISION/Tech.EU)
12 Mar 19. Aerodyne Gets Series B Investment from Japan’s Drone Fund. Kamarul Muhamed, standing, 2nd from right, shaking hands with Soki Ohmae, board member of Drone Fund. Kotara Chiba, founder and general partner is to his left.
Global UAV service provider Aerodyne Ventures Sdn Bhd has announced receiving an undisclosed pre-Series B investment from Japan based drone company Drone Fund in deal which will consolidate their position in the Japanese market.
“We are thrilled and honoured to have Drone Fund as our investor. Aerodyne is currently blitz-scaling our way around the world and the collective experience, network and wisdom from all our stakeholders will be a paramount contributor to our ongoing success. Japan is an interesting and significant market for us and we look forward to working very closely with Drone Fund to make our vision a reality,”
says Kamarul Muhamed, cofounder and managing director of the Malaysian-based Aerodyne Group which has a presence in 23 countries with 260 staff including pilots, engineers, software developers and industry experts.
With Drone Fund having made over 20 investments into various drone companies todate, Malaysian based Aerodyne Group aims to tap this stable of innovative drone related startups and established technology partners to accelerate its growth.
Drone Fund’s investment into Aerodyne Group, comes from its Drone Fund 2, a US$45m (RM184m) size fund which counts among others, Japanese football star Keisuke Honda, as an investor. Although the amount is undisclosed, the Aerodyne Group investment is one of the most significant that Drone Fund has made to date and brings together the global reach and experience of Aerodyne Group with the finest innovators and technology partners in the burgeoning Japanese drone industry.
“Drone Fund are very excited by our new alliance in Aerodyne Group. We believe that the utilisation and application of automated technologies is increasingly being realised, and the speed of its implementation is accelerating exponentially. This partnership with Aerodyne Group is important for the drone startups we have invested in to make further inroads into the growing Asian market and beyond. Aerodyne Group is a truly a leading industry solution provider with DaaS (Drone as a Service) and SaaS (Software as a Service) solutions that leverage the power of AI,” says Soki Ohmae, executive board member of Drone Fund
Aerodyne Group’s rapid growth, where it has completed over 48,000 flight operations, inspected more than 250,000 assets and surveyed in excess of 60,000km of power infrastructure since 2015 has been fuelled by its development and extensive implementation of artificial intelligence (AI).
Access to the rapidly expanding Japanese domestic market for drone enterprise solutions and partnership with Drone Fund is an important step on the road towards achieving other long-term technology goals. The development of fully-autonomous UAV and BVLOS (Beyond Visual Line of Sight) technology is already front and centre of Aerodyne Group’s development roadmap, with live projects around the world incorporating nested drones, 5G connectivity and automated surveillance. (Source: UAS VISION/DNA)
11 Mar 19. Honeywell and Temasek become strategic investors in AirMap. AirMap has announced the addition of two strategic partners – Honeywell and Temasek. According to a Linkedin posting by AirMap Co-Founder and Chairman Ben Marcus: “Honeywell Ventures invests in early-stage, high-growth companies around the world that have emerging or disruptive technologies and are strategically aligned to their investment portfolio and software capabilities. A multinational conglomerate and leading aerospace technology company, Honeywell sees UTM as a critical enabler for drone operations by customers. The company currently uses AirMap’s application programming interfaces (API) for industrial customers in operations such as inspecting power lines and downstream oil and gas equipment.”
Honeywell Aerospace Senior Director for UAV Programs, Brad Westphal, said: “Effective airspace planning and management starts with educating others and learning from real-world applications. By working with AirMap, we accelerate our end-to-end offering for our customers and bring scalable, safe UTM operations into controlled airspace.”
Incorporated in 1974, Temasek is a global investment company headquartered in Singapore. Supported by its network of international offices, Temasek owns a USD235bn portfolio as at 31 March 2018, with significant exposure to Singapore and the rest of Asia. (Source: www.unmannedairspace.info)
11 Mar 19. Coras Solutions broadens service offering to defence industry and government, launches new brand identity. Coras Solutions has kicked-off a major rebrand, heralding a shift in focus for the company ahead of ambitious plans to broaden its service delivery to other government agencies and defence industry. Defence consulting has traditionally been a highly competitive and tightly guarded industry, dominated by the large consultancy firms. However, times are changing and for Coras Solutions, there is no better time to shift gears ahead of Australia’s period of significant defence investment.
Coras Solutions is a wholly Australian owned company delivering asset management, commercial advisory, governance and assurance, program management, and business advisory services. With offices in Sydney and Canberra, they are well placed to take advantage of unprecedented growth in the defence market.
Coras was founded three years ago with initial plans to service the defence maritime consulting industry. With rapid growth in its team and increasing demand for its services, Coras is now delivering to land, air and maritime clients. Australia’s $200bn investment in Defence capability and defence industry has presented Coras with the opportunity to further expand its client base to other government departments and defence industry.
“After three years of operation we have grown the team to 18, with offices in Sydney and Canberra. While the growth is great news, we need to continually focus on delivering tangible outcomes for our clients and maintaining Coras as a great place to work,” Phil Cutts, Coras Solutions managing director, said.
Coras focuses on delivering and empowering business transformation, while helping to facilitate organisational change for clients. Drawing on specialist experience, the Coras team has a growing portfolio of projects supporting Defence, other government agencies and defence industry.
The success of Coras’ delivery to existing clients has resulted in ongoing contracts supporting CASG SPO’s, Fleet Command, Army Headquarters and the Bureau of Meteorology. Coras is also supporting Indra Australia’s Deployable Defence Air Traffic Management and Control System (DDATMCS) to ensure Air Force receive a capability with the appropriate support systems and documentation.
“At Coras we don’t have competitors, everyone in our industry is a potential collaborator. As Defence is becoming more integrated, consulting service providers need to work together for the greater benefit of our clients,” Cutts said.
For Coras, team members play a central role in securing and enhancing the success of the company and reflects the company’s commitment to respect, collaboration and enjoyment, demonstrated by a rapid growth and expansion for the company.
Looking to the future, Coras is aiming to expand the company’s team in Canberra, drawing on existing successes and experiences to bring an innovative approach to the Canberra consulting market. They are focused on combining skills and experience from state and federal government, industry and Defence to provide ‘new thinking’ and diverse solutions. Investment in this cross-pollination of market segments within an SME consulting firm underpins their unique approach client delivery.
Cutts added, “Ultimately, hiring all the great people out of Defence and selling them back to our clients doesn’t really add value. Coras is firmly focused on recruiting talent from non-defence industries and training our team in contemporary approaches to ensure we bring new thinking and innovative solutions to our clients.”
While Coras has already entrenched itself as a valued consultant in Defence, it decided to change its brand to primarily give its team and clients an integrated message driven from its internal values and principles to deliver a valued client experience and ultimately pursuing its aspiration of why it is in business.
“Having a brand with a clear message that is understood and resonates with our stakeholders is vitally important to us. We want all those who come in contact with us to feel a part of something greater. Giving them an understanding of what we hold important, our standards and what we want to achieve will allow us to develop more effective relationships between our team and our clients,” Cutts explained. (Source: Defence Connect)
11 Mar 19. Moog Australia looking to triple revenue, double employees over next five years. Local designer, manufacturer and integrator of precision control components and systems, Moog Australia, has announced it expects to triple its revenue and double its employees by 2024 thanks to the Centre for Defence Industry Capability (CDIC), with the federal government investing $200bn into Defence.
Moog supplies “mission critical” sub-systems and components on numerous platforms, including the F-35 Lightning II Joint Strike Fighter (JSF), F/A-18 Hornet and Super Hornet, Black Hawk, AP-3C Orion, ASLAV, M113, and Collins Class submarines.
“We engaged with the CDIC to undertake business mapping to determine how our workforce skills align with Defence needs,” Moog Australia managing director Bryan O’Connor said.
“With the assistance of the CDIC and the Australian Industry Group, we held a supply chain forum in which 60 companies took part. We presented an overview of our business, what we needed and how we propose to upskill suppliers. The CDIC then identified a number of companies matching the capability required and completed a skills assessment so they can participate in our supply chain.”
CDIC also helped Moog to investigate on how the company could supply new infrastructure to Australia.
“The infrastructure we want to bring to Australia requires skills which are not being taught in Australia’s tertiary sector. We have had Australian employment positions open for two years that we were unable to fill,” O’Connor said.
Moog has an employee base of 21 at its Melbourne headquarters, with the parent company employing 11,000 in 27 countries.
The company is working to develop a relationship with Monash University and Melbourne University, again helped by CDIC, in order to design new courses to provide students with skills they need to succeed in the defence industry.
“There is the long-term strategic role to work with universities and research. These defence platforms will be in circulation for 50 years and the CDIC can bring together industry, universities and research,” O’Connor said.
“It’s beneficial to have CDIC’s assistance. While we could do supplier assessments ourselves, the CDIC’s independence is advantageous to us and our suppliers when conducting a review and helping to fix the gaps. The CDICs independence ensures the companies in the supply chain are given more support meeting the Defence requirements that we wouldn’t be able to provide.” (Source: Defence Connect)
08 Mar 19. Boeing Recommends Shareholders Reject Below-Market Mini Tender Offer by Peer & Peri LLC. The Boeing Company [NYSE: BA] has received notice of an unsolicited “mini-tender” offer by Peer & Peri LLC to purchase up to 10,000 shares of Boeing’s common stock. Peer & Peri’s offer price of $335.00 per share is approximately 22% lower than the $426.87 closing price of Boeing shares on February 25, 2019, the date of the commencement of the offer. Boeing is not affiliated in any way with Peer & Peri, the offer, or the offer documentation. However, the rules and regulations of the Securities Exchange Act of 1934 require Boeing to publicize its position with respect to the offer. Boeing recommends against shareholders tendering shares in response to the offer, as the offer price was significantly below the market price of Boeing’s stock as of the commencement of the offer, and is also significantly below today’s closing price of $422.54. The offer also does not provide investors with the same level of protections under U.S. federal securities laws as provided by larger tender offers. Mini-tender offers seek to acquire less than five percent of a company’s outstanding shares, thereby avoiding many disclosure and procedural requirements under U.S. federal securities laws and the rules and regulations of the U.S. Securities and Exchange Commission (SEC). The SEC has cautioned investors about mini-tender offers, noting that they “have been increasingly used to catch investors off guard” and that many investors who hear about mini-tender offers “surrender their securities without investigating the offer, assuming that the price offered includes the premium usually present in larger, traditional tender offers.” The SEC’s tips for investors regarding mini-tender offers may be found at http://www.sec.gov/investor/pubs/minitend.htm.
Boeing urges shareholders to obtain current market quotations for their shares of common stock, review the conditions of the offer, consult with their financial advisors, and exercise caution with respect to the offer. Shareholders who have already tendered their shares may withdraw their shares prior to the expiration of the offer by providing notice in the manner described in Peer & Peri’s Offer to Purchase and Letter of Transmittal. According to the offer documents, the offer is currently scheduled to expire at 5:00 p.m., Eastern time, on Thursday, March 28, 2019. Boeing requests that a copy of this news release be included with all distributions of materials relating to Peer & Peri’s offer.