Sponsored by TCI International Inc.
30 Jan 22. Viasat promises it is committed for long haul and has no plans to sell off parts of satellite company’s business.
- Rick Baldridge said his firm intends to create new jobs and invest in Britain
- Critics said assurances must be ‘cast iron’ and legally binding
- Viasat was grilled by the Business Secretary about potential undertakings
The boss of the US group buying Inmarsat has promised it is committed for the long haul and has no plans to sell off parts of the satellite company’s business.
Launching a robust defence of the £5.4bn takeover, Viasat chief executive Rick Baldridge told the Daily Mail that his firm intends to create a slew of new UK jobs and invest more in Britain.
But critics said assurances must be ‘cast iron’ and legally binding after many disastrous UK buyouts.
Baldridge’s comments come after Viasat was grilled by Business Secretary Kwasi Kwarteng last week about potential undertakings.
The takeover is one in a line of controversial aerospace and defence deals in recent years.
There are fears Inmarsat could suffer the same fate as aerospace group Cobham, which was carved up 18 months after it was bought by US private equity firm Advent.
The Government has been so worried about the string of sell-offs it has brought in laws to protect firms in sensitive industries – including space – which include automatically screening deals.
Inmarsat is the largest provider of in-flight wi-fi for airlines and the top provider of internet connections for ships. It has 14 satellites in orbit and plans to launch another seven. Baldridge said: ‘We’ve got a good history of making acquisitions an integral part of the company.’
He added that Viasat could sell some of Inmarsat’s US operations if they do not fit into the future, but added that the company has been around for 35 years and not sold anything to date.
Viasat invested £300m in a cyber centre in Aldershot, Hampshire, last year, and does other work in the UK.
He added: ‘We’ve already been making hundreds of millions of dollars in commitment here.
‘So, you don’t have to believe me and say, ‘What are you going to do with this? Is this going to be the latest promise?’ Look at what we’ve done.’ But aerospace analyst Francis Tusa said any promises would need to be cast-iron, multi-year legal commitments to ensure that Inmarsat avoids Cobham’s fate.
Tusa said: ‘Assurances are not enough on their own. They need to check Viasat’s not crossing its fingers behind its back – with too many takeovers we’ve seen promises that were comical.’
Inmarsat was taken private in 2019 for £4.7billion by private equity groups including Warburg Pincus, but was put up for sale last year.
Most of its 2,000-strong workforce is based in the UK.
28 Jan 22. Moog Inc. Reports First Quarter Results. Moog Inc. (NYSE: MOG.A and MOG.B) announced today financial results for the quarter ended January 1, 2022.
First Quarter Highlights
- Sales of $724m were up 6% from a year ago;
- GAAP diluted earnings per share of $1.44;
- Portfolio shaping activities, primarily related to the divestiture of the NAVAIDS business, contributed a $0.33 net gain;
- Non-GAAP diluted adjusted earnings per share of $1.11 were in line with the company’s guidance of 90 days ago;
- GAAP operating margins of 11.1% with adjusted operating margins of 9.1%;
- $157 m GAAP cash flow from operating activities;
- Amended the securitization facility such that certain receivables, up to $100 m, may be derecognized from the balance sheet; $90 m was derecognized as of the end of Q1;
- $68 m adjusted cash flow from operating activities;
- GAAP effective tax rate of 24.7% and adjusted effective tax rate of 24.0%; and
- Today announced a 4% increase in the quarterly dividend, to $0.26.
Aircraft Controls segment revenues in the quarter were $303m, 6% higher year over year. Commercial aircraft revenues were $117m, a 45% increase from a year ago. Sales to commercial OEM customers were up 47%. Commercial aftermarket sales increased 38% on repair and overhaul activity, particularly on the 787 aircraft.
Military aircraft sales were $186m, down 10% year over year. Military OEM sales were down 9%, to $136m, tied to lower foreign military sales and lower F-35 Joint Strike Fighter sales. Military aftermarket sales were 12% lower, on weaker sales across multiple programs.
Space and Defense segment revenues were $208m, an increase of 10% from last year. Space sales were up 13%, to $88m, the result of increased sales for space vehicles and avionics. Defense sales of $120m increased 9% year over year. Sales of the RIwP® turret were very strong and offset a decrease in sales of tactical missile components.
Industrial Systems segment sales in the quarter were $213m, up 2% from a year ago. Energy sales were up 10%, the result of strengthening oil prices and associated offshore exploration activity. Sales of simulation and test products were 10% higher, tied to test projects in China. Sales of products for industrial automation applications increased 7%, with strength seen across the core portfolio. Medical product sales were down 12% compared to a very strong quarter a year ago.
Consolidated 12-month backlog was $2.2bn, up 14% from a year ago.
“It was a solid quarter for our business, in line with our guidance of 90 days ago,” said John Scannell, Chairman and CEO. “The emergence of the Omicron variant made this quarter more challenging than we had projected, but we still achieved our plan. We had an exciting quarter for program successes and product announcements tied to our organic investments. Overall, business sentiment in our markets remains positive and our outlook is optimistic for the remainder of the year.”
Fiscal 2022 Outlook
The Company updated its fiscal 2022 projections and adjusted figures provided 90 days ago.
- Forecasted sales of $3.0bn;
- Forecasted GAAP diluted earnings per share of $5.83, and adjusted diluted earnings per share of $5.50, both plus or minus $0.20;
- Forecasted GAAP operating margins of 10.8% and adjusted operating margins of 10.3%;
- Forecasted cash flow from operating activities of $338m and adjusted cash flow from operating activities of $238 m; and
- Forecasted GAAP effective tax rate of 25.5% and adjusted effective tax rate of 25.4%.
In conjunction with today’s release, Moog will host a conference call today beginning at 10:00 a.m. ET, which will be broadcast live over the Internet. John Scannell, Chairman and CEO, and Jennifer Walter, CFO, will host the call. (Source: BUSINESS WIRE)
28 Jan 22. Godspeed Capital Acquires Savli Group, Inc..
Leading ServiceNow Software and IT Solutions Provider is Second Add-On to Godspeed Capital’s Holding Company Platform Focused on Providing Cyber and Technology Solutions to the U.S. Defense and Intelligence Communities
Joins Godspeed Capital’s Existing Portfolio Companies Varen Technologies and Exceptional Software Strategies. Godspeed Capital Management LP (“Godspeed Capital”), a lower middle-market Defense & Government services, solutions, and technology focused private equity firm, today announced the successful acquisition of Savli Group, Inc. (“Savli” or the “Company”), a professional services company providing ServiceNow Software and Information Technology automation solutions to mission-oriented Federal Agencies, including the U.S. Defense and Intelligence Communities. The financial terms of the transaction were not disclosed.
The newly acquired Savli will join as the second add-on to Godspeed Capital’s existing portfolio companies, Varen Technologies, Inc. (“Varen Technologies”) and Exceptional Software Strategies, Inc., (“ESS”) under a recently formed cyber and technology solutions platform holding company designed to provide U.S. Defense and Intelligence Community agencies with a full suite of solutions and services to combat an increasing and ever-evolving level of cybersecurity and intelligence threats.
Founded in 1996 by former NASA engineer and entrepreneur Vishal Desai, Savli boasts a 26-year history of successfully implementing and integrating innovative mission-critical Software and Information Technology solutions for discerning U.S. Government and commercial clients. The Company is a leading ServiceNow Elite Partner solutions provider for key Intelligence Community customers. Specific solutions and services include tailored implementations, integrations, digital transformation services, consulting, and strategy development.
Vishal Desai, Founder & President of Savli, said, “Godspeed Capital is utilizing its deep industry expertise to build a premier platform that will help provide mission-critical cyber and technology solutions to the U.S. Defense and Intelligence Communities. We are proud to join this platform alongside Varen Technologies and ESS, where Godspeed’s strategic playbook and resources will enable us to work alongside other expert providers of government-related technology solutions as we continue to meet the evolving needs of the U.S. Intelligence Community.”
Savli is an “Elite Partner” with ServiceNow, one of only 120 Elite Service & Sales Partners globally. Nearly each of the Company’s more than 20 specialized employees, primarily focused on professional delivery, hold high level security clearances. By offering an end-to-end solution with respect to the ServiceNow continuum, Savli is critically important to ensuring the successful implementation of next-generation, mission-critical Information Technology roadmaps for its U.S. Intelligence Community customers.
“We are thrilled to partner with Vishal and the entire Savli team, whose end-to-end ServiceNow Software and Information Technology solutions are essential tools for the U.S. Intelligence Community. Savli’s decades of experience, stellar reputation, and high-level expertise across a wide range of specialized technology services makes the Company an ideal partner for Godspeed as we continue to scale our platform and provide technology and security solutions for the U.S. Intelligence Community for years to come. By combining Savli’s expertise with that of Varen Technologies and ESS, our rapidly growing platform is well-positioned to grow and expand its continuum of innovative services and solutions,” said Douglas T. Lake, Jr., Founder & Managing Partner of Godspeed Capital.
Savli Group, Inc. was advised by Star Advisory Services and supported by legal counsel Miles & Stockbridge.
About Savli Group, Inc.
Founded in 1996 and based in Maryland, Savli is a professional services company providing Software and Information Technology solutions and services, including ServiceNow implementation and integration, to mission-oriented customers primarily within the U.S. Intelligence Community. Savli offers core capabilities in ServiceNow implementations, integrations, mission transformation services, consulting, and strategy development, serving primarily the Intelligence Community customers. For more information, please visit the Savli Group, Inc. website at http://www.savli.com/.
About Godspeed Capital
Godspeed Capital is a lower middle-market Defense & Government services, solutions, and technology focused private equity firm investing alongside forward-thinking management teams that seek an experienced and innovative investment partner with unique sector expertise, operational insight, and flexible capital for growth. While a typical investment will involve companies generating approximately $3 million to $30m of EBITDA, Godspeed Capital has significant support to complete larger transactions through strategic co-invest relationships. The firm focuses on control buyouts, buy-and-builds, corporate carve-outs, and special situations. For more information, please visit the Godspeed Capital website at www.godspeedcm.com. (Source: BUSINESS WIRE)
31 Jan 22. Kleos Space builds a Solid Foundation for a strong 2022.
- Converting pipeline to contract backlog for data license subscriptions, as the basis for future recurring revenue, including:
o 7 Data Evaluation and follow-on contracts signed with Government Intelligence Agencies of the NATO Allies
- 2022 Targets:
o Monthly EBITDA positive status during mid-2022
o End 2022 ARR of minimum US$20M
- Global pipeline increased to over 263 qualified deals, including:
o 73 Guardian LOCATE data evaluation contracts, representing min ARR of US$6 million
o 7 contracts in negotiation, representing min US$4 million
- Guardian LOCATE API ready for distribution of data
- Finalising commissioning of Vigilance Mission (KSF1) satellites
- Third satellite cluster, Patrol Mission (KSF2), ready to launch in April 2022
- Fourth satellite cluster, Observer Mission (KSF3) satellite build underway, targeting mid-2022 launch
- In-orbit improvements to KSF1’s flight software will be applied to the Patrol and Observer Missions, reducing commissioning times for their launches
- We continue to build a world class team with a global footprint to execute our strategy
Kleos Space (ASX: KSS, Frankfurt: KS1), a space-powered Radio Frequency Reconnaissance data-as-a-service (DaaS) company, provides the following update for the quarter ending 31 December 2021 (Q4 2021)
Commenting on the company’s December quarter progress, Kleos Space CEO Andy Bowyer said:
“Kleos has made significant progress towards increasing the capacity, frequency and quality of its data delivery as well as converting pipeline to contracts to support the generation of recurring revenues from subscription licenses. Despite delays in launch & satellite commissioning, we remain focussed to reach monthly EBITDA positive status during the middle of 2022.
“Processed data from our Scouting Mission provides us with our first data product, and lowest tier subscription license. During the quarter, the team completed optimisation activities to further enhance the quality and frequency of its data delivery to support future revenue generation. By the end of 2022, we will have data from four satellite clusters, enabling tiered subscription licenses and increasing revenue generation from the large existing customer base.”
In 2022 we are focussed on delivering exceptional fundamentals-based value for our shareholders. We will achieve this by executing:
- Exceptional mission capability and data products, whilst pacing business operations growth to hit EBITDA positive and cashflow positive status.
- Long-term value creation through innovation, IP and growth opportunities; communication of value drivers; the model drivers, contracts, execution and technological differentiators.
Kleos’ precision geolocation data is sold globally as-a DaaS to qualified government and commercial entities. Data is sold on a volume basis (million km2/month collected) with each new satellite cluster increasing Kleos’ data collection capability and improving revisit rates over key areas of interest. Subscribers access Kleos’ GUARDIAN Locate data from its satellites through an API.
In Q4, Kleos’ converted further pipeline to contractual backlog, positioned to commence generating repeat subscription revenues supporting the target to achieve monthly EBITDA positive status during mid 2022.
Its subscriber base now comprises:
- 73 Guardian LOCATE data contracts, representing US$6 million minimum ARR
- 23 negotiations and agreements with resellers, integrators, and channel partners
Kleos’ added subscriber backlog in Q4, including:
- New qualified deals (now totalling 263):
o 16 new defense and security entities
o 16 new resellers
o 8 new integrators
- 5 new Guardian LOCATE evaluation contracts were signed in quarter 4 2021, representing US$450,000 ARR post two-month trial period at lowest subscription level
- 15 new customers currently reviewing data[BA1]
- 2 new contracts in negotiation representing ARR of up to $2M
Kleos’ DaaS business model has a low operational cost base and is highly scalable. Subscribers pay license fees to access the data, generating recurring revenues. Importantly, subscribers do not own the data. Each new satellite cluster creates higher-value data sets and tiered subscription licenses. Kleos is targeting to have 4 satellite clusters generating revenues within the next 12 months.
Kleos is targeting a total constellation of up to 20 clusters of four satellites for optimal global coverage and near-real-time revisit rates over key areas of interest. Kleos currently has eight satellites in low earth orbit (Scouting Mission and Vigilance Mission), one cluster awaiting launch (Patrol Mission) and its fourth in development (Observer Mission). The Patrol and Observer Missions will each provide an additional 119 million square kilometres of coverage per day, significantly increasing the volume of data available to subscribers while also improving the value of the data. More frequent revisit rates over key areas of interest provide subscribers with more accurate, and timely, intelligence. As subscribers pay on a volume basis, greater data collection capabilities increase revenue opportunities.
Kleos remains focused on continuing to enhance the quality and frequency of data delivery and converting introductory subscriber contracts to repeat recurring revenue, targeting monthly EBITDA positive status during mid 2022. In addition, Kleos will continue to build its constellation to increase the value and volume of its radio frequency geolocation data, growing subscriber numbers and increasing revenue contribution from existing subscribers.
Kleos’ FY22 priorities are:
- Onboard new data subscribers, increasing revenue as higher-value data sets become available
- Data delivery from the Vigilance Mission(KSF1) satellites
- Launch the Patrol Mission (KSF2) satellites in April 2022
- Build and launch the Observer Mission (KSF3) satellites in mid-2022
- Enable subscribers to access additional data sets from the Patrol and Observer Missions
27 Jan 22. Northrop sales disappoint as supply chain snarls restrict deliveries. Northrop Grumman Corp (NOC.N) missed fourth-quarter revenue estimates on Thursday as labor shortages and supply chain snarls hampered its ability to deliver components for defense products, including Lockheed Martin’s (LMT.N) F-35 jets.
The defense contractor’s sales fell 15% in the final three months of 2021 to $8.64bn, falling short of the average analyst estimate of $8.99bn, according to Refinitiv data.
The drop was driven by a 25% decline in revenue from its aeronautics unit that makes the center fuselage for fighter jets and also reflected how the pandemic has hobbled manufacturers by disrupting supply chains.
Northrop’s shares fell 1.7% before the bell as its 2022 forecast suggested the supply chain pressure was likely to continue. The company expects sales of between $36.2bn and $36.6bn this year, below estimates of $37.03bn.
But its space systems business was a bright spot, with revenue rising 4% in the fourth quarter as countries ramped up investment in space exploration and satellite-based sensors.
Quarterly net earnings rose to $2.71bn, or $17.14 per share, from $330 m, or $1.97 per share, a year ago, aided by a one-time gain on the sale of its IT services business.
On an adjusted basis, the company earned $6 per share, beating estimates of $5.96 per share.
Its total profit for 2021 more than doubled to $7bn.
The results come after Lockheed Martin and Raytheon Technologies Corp (RTX.N) beat analysts’ estimates for quarterly profit, encouraged by easing restrictions around the globe. (Source: Reuters)
27 Jan 22. Textron sees higher corporate jet production, shares drop on 2022 guidance. Textron Inc (TXT.N) expects to continue ramping up business jet production in 2022 on demand from wealthy travelers, but broader industry supply-chain hiccups, labor shortages and recent surges in COVID-19 cases remain challenges.
Textron shares slipped 6% in afternoon trading, after the U.S. maker of Cessna business jets disappointed investors with some of its 2022 guidance.
Cautious passengers avoiding commercial flights during the pandemic have helped drive U.S. private air traffic above 2019 levels.
Business jet makers, eager to capitalize on that demand, are working with suppliers to mitigate the impact of global shipping and supply chain disruptions, along with the spread of the highly contagious Omicron variant.
“We have been ramping up the production rate. We continue to do that and expect to continue to do that throughout the course of 2022,” Textron Chief Executive Scott Donnelly told analysts on Thursday.
But Donnelly said Textron would be cautious with any increases and not “want to do something stupid and try to go radically accelerate production rates and then burn down backlog.“
Textron’s Donnelly said supplier issues have not slowed production rates or 2022 deliveries. A temporary spike in Omicron cases at the turn of the year, however, had some impact on operations.
Textron, which also produces helicopters, reported a fourth-quarter revenue miss, with its aviation division delivering 46 jets in the quarter, down from 61 a year earlier.
It delivered 167 jets in 2021, up from 132 in 2020, and reported an aviation backlog of $4.1bn at year end.
The company expects revenue of about $13.3bn for 2022, compared to analysts’ estimates of $13.56bn, according to Refinitiv IBES data.
Textron expects 2022 earnings per share between $3.80 and $4.00. The company reported revenue of $3.32 bn in the three months ended Dec. 31, below analysts’ estimate of $3.44bn. (Source: Reuters)
28 Jan 22. HKATG May See Threefold Growth in Revenue. Since Hong Kong Aerospace Technology Group, Ltd. (1725) (HKATG) has purchased the entire set of integrated supporting ground facilities and related services from CGWI last October, the Group is equipped with the capability of manufacturing a satellite from scratch.
The Group announced on 24 January 2022 that SZ Gang Hang Ke entered into the second Confirmation with CGWIC to set out the specific terms for the launch of the two satellites named ”Golden Bauhinia Satellite No. 3” and ”Golden Bauhinia Satellite No. 4”. The two satellites are scheduled to be launched in Q3 2022, with the target launch time tentatively being scheduled in July 2022, and will continue to form and constitute part of the “Golden Bauhinia Constellation”.
Plans to launch 25 satellites in 2022
According to the Board of HKATG, in order to further announce that for the formation of the ”Golden Bauhinia Constellation”, the Group has planned to launch 25 satellites, including the two satellites named ”Golden Bauhinia Satellite No. 3” and ”Golden Bauhinia Satellite No. 4” in 2022. The further launch of satellites this year will provide more and will boost the speed of receiving aerospace data. This will enhance the Group’s quantity and quality for satellite data reception and application services for the ”Golden Bauhinia Constellation” project, which will facilitate the development of various industrial and commercial activities related to remote sensing data processing, software development, and other professional value-added services in Hong Kong and promoting the development of the aerospace industry in the Guangdong-Hong Kong-Macau Greater Bay Area. With the one-stop service capability and the increasing number of service contracts, HKATG is expected to see twofold or even threefold growth in revenue in the short run, which is a positive catalyst for its stock price.
50-day moving average Offers Strong Support
Despite stock markets across the world have plunged into the red in recent days, according to the transaction record data from 24 to 27 January (after the announcement of the second Confirmation was made), an average of 70% of transactions of HKATG were Active Buy, and its current price provides a good opportunity of “Buy the Dip”. (Source: PR Newswire)
27 Jan 22. D-Orbit S.p.A., a Market Leader in Space Logistics, to Combine with Breeze Holdings Acquisition Corp. and Become a Publicly Listed Company.
A First Mover in Providing In-space Satellite Transportation for Commercial and Institutional Customers and in Demonstrating Satellite-as-a-Service Capabilities in Space
Six Missions to Date, Including Four Leveraging D-Orbit’s Proven ION Satellite Carrier
Members of The Charles F. Bolden Group, Founded by Former NASA Administrator and U.S. Marine Corps Major General, to Join Board and Support Strategic and Operating Execution
Pro Forma for the Transaction, Combined Company to Have Approximately $185 M (€163 M) in Cash on the Balance Sheet
Combined Company Will Have an Estimated Enterprise Value of Approximately $1.28bn (€1.13bn)
Expected to be Listed on Nasdaq Capital Market Under the Ticker Symbol “DOBT” following Expected Transaction Close in Second or Third Quarter of 2022
D-Orbit S.p.A. (“D-Orbit” or the “Company”), an Italy-based and market leading space logistics and transportation company, today announced that it will become publicly listed through a business combination with Breeze Holdings Acquisition Corp. (NASDAQ: BREZ) (“Breeze Holdings”), a publicly traded special purpose acquisition company. The transaction values the Company at an enterprise value of approximately $1.28 bn (€1.13 bn) post-money.
In connection with the transaction and to help drive D-Orbit’s next phase of growth, Breeze Holdings and D-Orbit are partnering with The Charles F. Bolden Group (“The Bolden Group”), a consortium of leaders with extensive space and aerospace experience. The Bolden Group was founded in 2017 by Charles F. Bolden Jr., retired astronaut, Marine Corps Major General and the 12th Administrator of NASA, to foster leadership for the global advancement of science and security in the areas of Space/Aerospace Exploration; National Security; Science, Technology, Engineering, and Math + Art and Design (STEM+AD) Education; and Health Initiatives.
Space Logistics Provider and Infrastructure Pioneer
D-Orbit is a market leading provider of in-space satellite transportation for commercial and institutional customers and has demonstrated satellite-as-a-service capabilities in space. D-Orbit is incorporated as a Benefit Corporation and is also the first space company worldwide to be certified as a B Corporation (“B-Corp”), reinforcing that its purpose-driven mission benefits all stakeholders. As D-Orbit builds out its technology, its service capabilities will facilitate infrastructure for cleaner, safer and more sustainable use of space.
The Company has designed a flexible, cost-effective in-orbit satellite delivery solution, the ION Satellite Carrier (ION) that:
- Positions satellites in-orbit faster, which can substantially reduce the time from launch to revenue generation for customers.
- Deploys multiple satellite constellations in multiple orbits within a single mission, which can significantly reduce the cost of overall constellation deployment.
- Enables customer satellites to ride on the first available launcher, resulting in a faster way to space.
- Reduces the need for spare satellites through faster constellation replenishment.
- Lowers manufacturing costs as it aggregates multiple payloads, which enables fewer launches, reducing overall propulsion costs.
- Enables customers to optimize satellite constellations transporting their satellites into orbital positions not reachable today with standard rideshare launches.
Following its initial deployment, each ION joins a growing fleet of multi-purpose ION spacecraft to enable a variety of high–margin secondary missions, including in-orbit validation and demonstration capabilities, integrated satellite services, satellites for rent and provides the space cloud computing infrastructure.
D-Orbit is also developing additional capabilities, including those designed to support the emerging market for cloud edge computing. In October 2021, D-Orbit successfully completed a first orbital testing of its space cloud infrastructure designed to provide distributed high-performance data analytics computing and storage capabilities. The Company believes development of multiple iterations of the system will enable future ION Satellite Carriers to deliver in-orbit cloud based artificial intelligence computing services.
Following the closing of the transaction, D-Orbit will continue to be led by its founders Luca Rossettini, Ph.D., Chief Executive Officer and Renato Panesi, Ph.D., Chief Commercial Officer. The Company has an experienced management team, with several key executives having worked at multinational space, satellite and launch integrator companies. In addition, D-Orbit benefits from a deep bench of talent, including engineers and Ph.D. experts in fields such as propulsion, flight software, electronics, telecommunications, mechanics and other related industries.
In connection with the transaction and the partnership between The Bolden Group and Breeze Holdings, A. Ché Bolden, President and CEO of The Bolden Group and Renee Wynn, former NASA Chief Information Officer are anticipated to be on the Board of Directors of the publicly traded company.
“D-Orbit was founded with the mission to enable expansion in space and fuel the new space economy, and the transaction we are announcing today is an important step forward toward our goals,” said Dr. Luca Rossettini, CEO of D-Orbit. “We have made tremendous progress developing and proving our unique ION technology, as well as building a dedicated customer base to which we have provided last-mile satellite delivery and advanced infrastructure services for more than eight years. Today, we deliver complete end-to-end services, guarantee satellite deployment in requested orbits and reduce our customers’ time from launch to revenue generation. As the space economy continues to evolve, we are well positioned to capture growth opportunities by providing next-generation in-orbit services across the entire satellite lifecycle and beyond.”
Dr. Rossettini continued, “Partnering with Breeze and The Bolden Group provides us financial resources and experienced partners to help us as we accelerate investments in new solutions and provide high-margin service and support to the exponentially growing constellations of satellites. I look forward to working closely with the Breeze Holdings and The Bolden Group teams as we execute our strategic objectives, scale our business to new heights and create value for our customers and, once we are public, our shareholders.”
“As we take this important next step in D-Orbit’s growth journey, we are encouraged by the strong momentum we are seeing across the business, as evidenced by our recently launched fourth mission leveraging our proven ION Satellite Carrier,” said Dr. Renato Panesi, CCO of D-Orbit. “We are executing clear growth strategies and are seeing strong bookings across our 2022 missions. As we chart the course for D-Orbit’s next phase, we remain focused on expanding our services and capabilities for our customers and enhancing value for all D-Orbit stakeholders.”
“This is an exciting day for Breeze and our shareholders, and we could not be more pleased to announce the signing of our business combination agreement with D-Orbit, a company that is providing the infrastructure for the new space economy,” said J. Douglas Ramsey, Ph.D., Chairman and CEO of Breeze Holdings. “We evaluated a number of potential companies to merge with and determined that D-Orbit checked all the boxes. It has unrivaled satellite deployment technology and is positioned at the forefront of a new category in space infrastructure that is poised to serve industries we know well, including oil and gas, and enabling products and services for the future. We believe D-Orbit has strong growth potential in a compelling market and are excited about how its technology will support a sustainable future for space infrastructure. We look forward to partnering with Luca and the D-Orbit team, as well as The Bolden Group, to support the execution of the Company’s strategic priorities and deliver shareholder value.”
“At The Charles F. Bolden Group, we are committed to cultivating and transforming leadership for the new space economy, and D-Orbit is the prototype leader for the future. Their emerging technologies and solutions align with our vision for the global advancement of science and security,” said A. Ché Bolden, President and CEO of The Bolden Group. “With its proven space transportation offering, in-orbit services, B-Corp certification and differentiated in-house technologies, D-Orbit can play a key role in facilitating satellite deployment today and capturing opportunities in the future as demand increases for in-orbit services. We look forward to working closely with Luca and the D-Orbit team to take this business to astronomical levels of growth.”
Positioned to Drive Growth and Value Creation
- Capturing Growth Opportunities as the Space Economy Evolves: With its innovative technologies and proven products and services, D-Orbit is positioned to be a leader in the rapidly growing space industry today and in the future.
o Near-term: Growing in an expanding market: delivering last-mile delivery solutions for satellites and advanced infrastructure services. The space economy has enormous potential with the market expected to grow to $1.4 trillion1 by 2030 with more than 65,000 satellites planned to be launched over the next ten years. These satellites are being used to enable multiple growing sectors on Earth, including telecommunications expansion; climate change observation; agricultural enhancement; autonomous oil and gas exploration and monitoring; forest management; and autonomous driving. With D-Orbit’s proven ION Satellite Carrier, the Company is slated to become a leading provider of last-mile delivery solutions and advanced infrastructure services for the rapidly growing new space economy.
o Mid-term: Well-positioned for the space economy’s next evolution, in-orbit services. With its existing technology, the scalability of the ION platform and advanced robotics, D-Orbit is also positioned to capture future opportunities in the expected next phase of the space economy, in-orbit services. The exponentially growing amount of satellite constellations and space debris is creating demand for D-Orbit’s transportation, maintenance, active debris removal and end-of-life disposal services capabilities. With our technological advantages and strong commercial relationships, D-Orbit believes it is well positioned to become a commercial leader in the in-orbit servicing space.
o Long-term: Potential for broad applications in the space economy. D-Orbit’s ION technology and satellite platform provides a first-mover advantage for potential new markets and applications in space. These include orbital recycling technology that can create savings by recycling material already launched into orbit, as well as microgravity-enabled manufacturing processes that can enable the production of lighter and bigger structures. Additionally, the extended capabilities of D-Orbit’s fleet of cargo and servicing spacecraft have the potential to enable new transportation and logistics infrastructure, which will be essential for long-term sustainable space businesses practices and human settlement of space.
- Proven Business Model with a Track Record of Successful Missions: To date, D-Orbit has launched six missions, including four leveraging its ION Satellite Carrier over the last 15 months. The Company has two additional missions planned in the first half of 2022.
- Strong Financial Outlook: The Company’s customer base is diverse across space segments and geographies, with a substantial mission backlog of $21.5m (€19m), $167m (€147m) of contracts in negotiation and a $1.2bn (€1.1bn) pipeline. D-Orbit generated 2021 revenues of approximately $3.4m (€3m). It anticipates achieving free cash flow profitability and expects revenues of approximately $453 m (€399 m) in 2024.
Under the terms of the business combination agreement with Breeze Holdings, D-Orbit S.A., a newly formed joint stock company (société anonyme) governed by the laws of the Grand Duchy of Luxembourg (“Holdco”), will become the parent company of both D-Orbit and Breeze Holdings and will issue ordinary shares to the shareholders of D-Orbit and Breeze Holdings. Upon closing, Holdco’s common stock is expected to trade on the Nasdaq Capital Market under the ticker symbol DOBT.
The transaction has been unanimously approved by the Boards of Directors of both D-Orbit and Breeze Holdings. It is expected to close in the second or third quarter of 2022, subject to the satisfaction of customary closing conditions, including certain governmental approvals and the approval of the shareholders of Breeze Holdings and the contribution of the D-Orbit shares by the D-Orbit shareholders.
The transaction is expected to deliver up to $185 m (€163 m) in cash at closing, which includes a $29 m (€25 m) binding convertible debt financing provided by ATW Partners. Additional information may be found in the Current Report on Form 8-K that was filed by Breeze Holdings today with the U.S. Securities and Exchange Commission.
D-Orbit intends to use the proceeds from the transaction to accelerate investments in its ION Satellite Carrier, Advanced Services and space cloud infrastructure capabilities and In-Orbit Servicing (IOS) solutions, build out its bench of talent to support the development of new technologies and drive expansion into new space segments.
J.P. Morgan Securities PLC is acting as financial advisor to D-Orbit. K&L Gates LLP is acting as legal advisor to D-Orbit in the U.S. and Italy, and Arendt & Medernach SA is acting as legal advisor to Holdco in Luxembourg. I-Bankers Securities, Inc. is acting as financial advisor to Breeze Holdings and acted as lead placement agent on the PIPE. Woolery & Co. PLLC and Schiff Hardin LLP are acting as legal advisors to Breeze Holdings.
(Source: PR Newswire)
26 Jan 22. Boeing posts loss as 787 jet deliveries stall with ‘no firm end in sight.’ Boeing Co (BA.N) said on Wednesday it incurred $4.5 bn charges in the fourth quarter on its sidelined 787 program, obscuring the U.S. planemaker’s long-awaited return to positive cash flow fueled by rebounding 737 MAX deliveries. The planemaker sank to a loss after two quarters of profits because of the charges. Shares in Boeing fell 3.6% as the array of charges and uncertainty over the 787 program dwarfed a surprise return to positive free cash flow and plans to increase production on the 737 and 777.
The quarterly results underscore the challenges Boeing faces as it seeks to rebound from the coronavirus pandemic and 737 MAX safety crises, while navigating industrial and regulatory currents on its bigger 787 and 777X flagship.
Its ability to resume deliveries to airlines depends on approvals from the U.S. Federal Aviation Administration.
Reuters reported last week that deliveries of the 787 are expected to remain frozen for months as U.S. regulators review repairs and inspections over structural flaws in the jets, while designs for the larger 777X face further regulatory pushback from Europe. read more
“We’ll have to complete the rework on a large fleet of airplanes,” Calhoun told analysts on a conference call later on Wednesday. “There’s no way to shortcut it … I wish it could go faster, and I can’t accelerate it.”
Asked whether deliveries would resume in April, as some people in the industry expect, Calhoun said the timing would be set by the FAA.
The program remains at a low production rate, with an expected gradual return to five per month over time, Boeing said. Calhoun and Chief Financial Officer Brian West later told investors on a call 737 MAX deliveries and service would resume in China’s crucial aviation market in the first quarter.
Boeing unveiled a $3.5bn pre-tax non-cash charge related to 787 delivery delays and customer concessions, and another $1 bn in abnormal production costs.
Boeing had previously forecast low production rates and rework for the 787 due to manufacturing flaws and required inspections and repairs to result in about $1 bn of abnormal costs – putting the overall price tag at some $5.5 bn.
“Here we go again,” Vertical Research Partners analyst Rob Stallard said. “Just as we saw with the 737 MAX, Boeing is now racking up massive charges on the 787 with no firm end in sight, and its fate in the hands of the FAA.”
At its U.S. factories, Boeing is combing through parked 787s with ultrasound devices and tools to measure gaps barely visible to the naked eye. The gaps – left in the process for making carbon-composite structures that make the jet lighter and cheaper to fly – are the width of a human hair but violate Boeing’s specifications.
The company reported a core operating loss of $4.54bn in the fourth quarter ended Dec. 31, compared with a loss of $8.38bn a year earlier, when the company recorded a $6.5bn charge due to delays in its 777X jet program.
Still, Boeing generated positive cash flow in the fourth quarter, representing its first positive cash quarter since early 2019, fueled by 737 MAX deliveries as air travel rebounds from the pandemic. 2023 cash flow would be “materially” higher than 2022, West said.
Boeing said its 737 program was producing at a rate of 26 per month, up from 19 jets in the earlier quarter. It said it was on track to reach production targets of 31 per month in early 2022, though it faces supply-chain risks like labor and parts shortages.
Boeing currently has 335 737 MAX airplanes in inventory, and anticipates delivering most of those jets by end-2023, it said.
Boeing also said it aims to increase its 777/777X production to 3 aircraft per month in 2022 from 2 previously, fueled by orders for 777 freighters amid booming air cargo demand. It reiterated plans to deliver the first 777X in late 2023.
Higher revenue and operating margins in its Global Services Division were hurt by an asset-impairment write down of $220 m due to fluctuating demand and pricing, Boeing said.
Boeing also took a $402m pre-tax charge on its KC-46 tanker program, due to changing customer requirements to the plane’s remote vision system and supply chain disruptions.
Debt fell to $58.1bn from $62.4bn at the beginning of the quarter, Boeing said. (Source: Reuters)
27 Jan 22. Rheinmetall CEO says 2021 has been ‘record’ year – WirtschaftsWoche. German defence group Rheinmetall had a record year in 2021, chief executive Armin Papperger told WirtschaftsWoche in an interview published on Thursday.
“Measured by performance, 2021 has been our record year. And 2022 is very likely to be even better,” he was quoted as saying.
Rheinmetall is scheduled to report full-year results for 2021 on March 17.
Papperger said the good performance, which he did not quantify, was due to a strong increase in the group’s order backlog.
“At currently 24bn euros it is already higher than ever and could rise by more than 10bn euros again this year,” he was quoted as saying. (Source: Reuters)
27 Jan 22. Rheinmetall CEO says 2021 has been ‘record’ year – WirtschaftsWoche. German defence group Rheinmetall had a record year in 2021, chief executive Armin Papperger told WirtschaftsWoche in an interview published on Thursday.
“Measured by performance, 2021 has been our record year. And 2022 is very likely to be even better,” he was quoted as saying.
Rheinmetall is scheduled to report full-year results for 2021 on March 17.
Papperger said the good performance, which he did not quantify, was due to a strong increase in the group’s order backlog.
“At currently 24bn euros it is already higher than ever and could rise by more than 10bn euros again this year,” he was quoted as saying. (Source: Reuters)
26 Jan 22. Defence company Leonardo has made no decision on DRS business sale. Defence and aerospace group Leonardo (LDOF.MI) said on Wednesday it had not taken a formal decision about a sale of a business line at its DRS division.
Bloomberg reported on Wednesday that Leonardo was considering options for its Global Enterprise Solutions business, including a sale. It could be worth up to $400m, Bloomberg said, citing people familiar with the matter.
“With regards to press rumours on the potential disposal of a Leonardo DRS business line, Leonardo informs that, as usual, it constantly evaluates options aimed at creating value for its shareholders, including the possibility of disposing business lines,” the Italian group said.
Last year, Leonardo tried to list U.S. electronics business DRS, which Global Enterprise Solutions is part of, but in March it postponed the initial public offering saying adverse market conditions did not allow for an adequate valuation. (Source: Reuters)
26 Jan 22. Federal Trade Commission alleges Lockheed had tried to limit competition before Aerojet deal. The U.S. Federal Trade Commission is raising new accusations Lockheed Martin tried to block competition even before its proposed acquisition of Aerojet Rocketdyne, according to a complaint filed this week. The 22-page document, filed in federal court, spells out the details of the government’s antitrust concerns about the proposed $4.4 bn deal between Lockheed, the world’s largest defense firm, and Aerojet, the sole supplier of several critical propulsion products for missiles. The complaint, released Wednesday, is heavily redacted but argues the sale would hurt rival defense contractors in ways that would significantly reduce competition in multiple markets.
In detailing their allegations, regulators provide a deep dive into some of the technologies the Pentagon is relying upon in its technological race with China and Russia. They point to Aerojet as a key supplier of scramjet engines for hypersonic missiles and control systems for missile interceptors, known as kill vehicles.
Though Lockheed has said it would allow Aerojet to continue on as a merchant supplier of propulsion equipment to the entire industry, regulators spell out why they’re not convinced.
Before Lockheed agreed to purchase Aerojet, the complaint says “Lockheed sought unsuccessfully to prevent Aerojet from supplying Critical Propulsion Technologies to other prime contractors on a number of occasions.”
Regulators redacted text apparently detailing one alleged instance, but left the words: “This is not the first time Lockheed made such an attempt.”
The complaint says Lockheed, which has billed the acquisition as critical to its space and hypersonic businesses, sought to buy Aerojet because it was worried a rival might do so — but, again, details are redacted.
“Lockheed feared such foreclosure risk to itself were one of its competing primes to acquire Aerojet,” the complaint reads. “The defensive rationale for the Proposed Acquisition itself substantiates the criticality of the propulsion products Aerojet supplies and validates the concerns that control of these essential inputs could be wielded effectively to lessen competition.”
Lockheed said Wednesday its practice is not to comment on pending litigation and that it is reviewing the complaint.
“We will review the lawsuit and consider our options,” said Lockheed CEO Jim Taiclet on an earnings call Tuesday. In a company filing, Lockheed said the merger agreement lets either company terminate the deal if it hasn’t closed on or before March 21.
Throughout the complaint, Defense Department input to regulators is redacted. Pentagon spokesman John Kirby on Tuesday declined to provide details about the department’s findings on the deal, which Deputy Defense Secretary Kathleen Hicks sent regulators in December.
“Because our information was used for internal deliberations, I cannot share the department’s recommendations,” Kirby said.
(Source: Defense News)
26 Jan 22. Oshkosh Corporation Reports Results for the Three Months Ended December 31, 2021.
Issues Fiscal 2022 Sales and Earnings Expectations
Repurchased 1.4 m Shares of Common Stock
Declares Quarterly Cash Dividend of $0.37 Per Share
Oshkosh Corporation (NYSE: OSK), a leading innovator of mission-critical vehicles and essential equipment, today reported net income for the three months ended December 31, 2021 of $6.2m, or $0.09 per diluted share, compared to $69.5 m, or $1.01 per diluted share, for the three months ended December 31, 2020.
Results for the three months ended December 31, 2020 included after-tax charges of $7.8m, or $0.11 per diluted share, associated with restructuring actions in the Access Equipment segment and $0.6 m, or $0.01 per diluted share, associated with business acquisition costs in the Defense segment. Excluding these items, adjusted1 net income for the three months ended December 31, 2020 was $77.9 m, or $1.13 per diluted share.
Consolidated net sales for the three months ended December 31, 2021 increased 13.7 percent to $1.79 bn compared to the three months ended December 31, 2020 largely as a result of robust demand for access equipment in North America, offset in part by lower Fire & Emergency segment sales.
Consolidated operating income for the three months ended December 31, 2021 decreased 81.2 percent to $18.0 m, or 1.0 percent of sales, compared to $95.9 m, or 6.1 percent of sales, for the three months ended December 31, 2020. The decrease was primarily due to higher material & logistics costs, unfavorable cumulative catch-up adjustments on contracts in the Defense segment and unfavorable product mix, offset in part by the impact of the higher sales volume and the beginning of higher pricing in response to the higher input costs. Excluding $8.0 m of pre-tax charges related to restructuring actions and $0.7 m of pre-tax business acquisition costs, adjusted1 operating income for the three months ended December 31, 2020 was $104.6 m, or 6.6 percent of sales.
“Our results for the three months ended December 31, 2021 were largely in line with our expectations as Oshkosh team members persevered through increasing COVID levels, supply chain and logistics disruptions and elevated input costs to deliver sales growth as well as positive operating income and earnings per share,” stated John C. Pfeifer, Oshkosh Corporation president and chief executive officer. “We posted revenue growth of nearly 14 percent, which was enabled by a number of actions we have taken and continue to execute to improve our supply chain and operations resiliency. I am proud of the entrepreneurial spirit across the Company as we continue to create value for our shareholders.
“Our positive long-term outlook and strong business foundation are built on our People First culture, strong market fundamentals, strategic program wins and a comprehensive offering of innovative new products & services that will drive continued market leadership. Confidence in our long-term outlook is evident as we returned $150m to shareholders through share repurchases during the three months ended December 31, 2021.
“With strong customer demand, significant price realization in our backlog, improved visibility to input costs and our continued efforts to manage supply chain dynamics, we are initiating fiscal 2022 diluted earnings per share expectations with a range of $5.75 to $6.75. We believe we are well-positioned as we continue to invest in our business and in our people,” added Pfeifer.
Factors affecting the Company’s business segment results for the three months ended December 31, 2021 included:
Access Equipment – Access Equipment segment net sales for the three months ended December 31, 2021 increased 47.9 percent to $833.5m due to robust demand for access equipment in North America, resulting in record sales for the Access Equipment segment for any three-month period ended December 31.
Access Equipment segment operating income in the three months ended December 31, 2021 increased 29.7 percent to $32.3m, or 3.9 percent of sales, compared to $24.9m, or 4.4 percent of sales, in the three months ended December 31, 2020. The increase was primarily due to the impact of the higher sales volume, improved pricing, favorable regional sales mix and the absence of charges related to restructuring actions, offset in part by higher material & logistics costs. Excluding $8.0m of pre-tax charges related to restructuring actions, adjusted1 operating income for the three months ended December 31, 2020 was $32.9m, or 5.8 percent of sales.
Defense – Defense segment net sales for the three months ended December 31, 2021 decreased 3.4 percent to $531.5m due to lower Family of Medium Tactical Vehicle program volume, lower Family of Heavy Tactical Vehicle program volume and lower aftermarket parts & services sales, offset in part by higher Joint Light Tactical Vehicle (JLTV) program volume and sales related to the Pratt Miller acquisition.
Defense segment operating income in the three months ended December 31, 2021 decreased 79.9 percent to $10.6m, or 2.0 percent of sales, compared to $52.8m, or 9.6 percent of sales, in the three months ended December 31, 2020. The decrease was due to lower cumulative catch-up adjustments on contracts as rising material costs offset the benefit of the JLTV order received in the three months ended December 31, 2021 as well as unfavorable product mix.
Fire & Emergency – Fire & Emergency segment net sales for the three months ended December 31, 2021 decreased 20.2 percent to $218.6 m as supply chain disruptions impacted production and delivery of Pierce fire trucks during the three months ended December 31, 2021 as well as lower aircraft rescue and firefighting vehicle sales volume as a number of multi-unit international awards were recognized in sales during the three months ended December 31, 2020.
Fire & Emergency segment operating income in the three months ended December 31, 2021 decreased 73.5 percent to $9.3m, or 4.3 percent of sales, compared to $35.1m, or 12.8 percent of sales, in the three months ended December 31, 2020. The decrease was due to the impact of the lower sales volume, higher material costs and higher manufacturing costs, offset in part by higher pricing in response to the higher input costs.
Commercial – Commercial segment net sales for the three months ended December 31, 2021 increased 7.6 percent to $210.6m due to higher front-discharge concrete mixer volume and higher pricing in response to higher input costs.
The Commercial segment reported an operating loss of $3.3 m, or (1.6) percent of sales, in the three months ended December 31, 2021 compared to operating income of $11.9 m, or 6.1 percent of sales, in the three months ended December 31, 2020. The decrease in operating results was largely due to higher material costs and adverse product mix, offset in part by improved pricing.
Corporate – Corporate operating costs for the three months ended December 31, 2021 increased $2.1m to $30.9m primarily due to the return of spending related to temporary cost reductions in the three months ended December 31, 2020, offset in part by lower incentive and share-based compensation costs.
Interest Expense Net of Interest Income – Interest expense net of interest income in the three months ended December 31, 2021 increased $0.4m to $11.8m.
Provision for Income Taxes – During the three months ended December 31, 2021, the Company recorded a benefit from income tax of $4.4m on pre-tax income of $0.6m. The provision for income tax in the three months ended December 31, 2021 included benefits for research & development tax credits, foreign derived income and stock-based compensation.
Share repurchases – The Company repurchased 1,362,831 shares of Common Stock for $150.0 m during the three months ended December 31, 2021. Share repurchases did not have an impact on diluted earnings per share during the three months ended December 31, 2021 compared to the three months ended December 31, 2020.
Fiscal 2022 Expectations
The Company announced its fiscal 2022 diluted earnings per share estimate range of $5.75 to $6.75 on projected net sales between $8.0 bn and $8.5 bn. These estimates reflect operating income between $545 m and $625 m.
The Company’s Board of Directors today declared a quarterly cash dividend of $0.37 per share of Common Stock. The dividend will be payable on February 25, 2022 to shareholders of record as of February 11, 2022. (Source: BUSINESS WIRE)
26 Jan 22. Amphenol Reports Record Fourth Quarter and Full Year 2021 Results.
Fourth Quarter 2021 Highlights:
- Record sales of $3.027bn, up 25% in U.S. dollars and 18% organically compared to the fourth quarter 2020
- Record GAAP diluted EPS of $0.72, up 26% compared to prior year
- Record Adjusted Diluted EPS of $0.70, up 23% compared to prior year
- GAAP and Adjusted Operating Margin of 19.6% and 20.1%
- Record Operating and Free Cash Flow of $464m and $379m
- Acquired Halo Technology and completed the MTS Test & Simulation sale
Full Year 2021 Highlights:
- Record sales of $10.876bn, up 26% in U.S. dollars and 18% organically compared to the full year 2020
- Record GAAP diluted EPS of $2.51, up 28% compared to prior year
- Record Adjusted Diluted EPS of $2.48, up 33% compared to prior year
- GAAP and Adjusted Operating Margin of 19.4% and 20.0%
- Operating Cash Flow and Free Cash Flow of $1.524 bn and $1.167 bn
- Completed seven acquisitions
- Returned more than $1bn to shareholders
Amphenol Corporation (NYSE: APH) today reported fourth quarter and full year 2021 results.
“We are pleased to have closed 2021 with fourth quarter sales and Adjusted Diluted EPS significantly exceeding the high end of our guidance,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt. “Sales increased from prior year by a strong 25% in the quarter, with particularly robust growth in the IT data communications, industrial, mobile networks, commercial air, automotive and broadband markets, including contributions from the Company’s acquisition program. For the full year, sales increased 26% compared to 2020, driven by strong growth across virtually all end markets, including contributions from the Company’s acquisition program. Despite facing substantial inflationary pressures and supply chain disruptions, full year Adjusted Diluted EPS grew by an impressive 33%. We are very proud of the Company’s outstanding performance in this most challenging and dynamic year.”
“Throughout the year, we continued to deploy our financial strength in a variety of ways to increase shareholder value. During the fourth quarter, the Company purchased 2.1 m shares of its common stock for $171m and paid dividends of $87m, resulting in total capital returned to shareholders in 2021 of more than $1bn.”
“We remain focused on expanding our growth opportunities through a deep commitment to developing enabling technologies for customers in all markets, an ongoing strategy of market and geographic diversification and an active and successful acquisition program. To that end, we were excited to have announced on December 1, 2021, the acquisition of Halo Technology Limited, as well as the closing of the sale of the MTS Test & Simulation business to Illinois Tool Works Inc. (NYSE: ITW). With the closing of the Halo acquisition, we successfully completed seven acquisitions in 2021. These new companies have broadened our high-technology product offering, expanded our position across most of our end markets and deepened our pool of talented, entrepreneurial managers around the world.”
Creation of Three New Divisions
Effective January 1, 2022, Amphenol aligned its business units into three newly formed Divisions: Harsh Environment Solutions (HES), Communications Solutions (CS), and Interconnect and Sensor Systems (ISS). This new alignment reinforces the Company’s entrepreneurial culture and the clear accountability of each of our business unit general managers, while enhancing the scalability of Amphenol’s business for the future. Beginning with the first quarter of 2022, the Company will report the financial results of these three new Divisions as separate reportable segments, replacing the Company’s previous two reportable segments. We will provide the results of these new reportable segments, as well as comparable historical financial data, with our first quarter 2022 results.
First Quarter 2022 Outlook
The current market environment remains highly uncertain, with continued supply chain and inflationary challenges as well as potential new disruptions from the recent resurgence of Covid-19. Assuming conditions do not meaningfully worsen and assuming constant exchange rates, for the first quarter of 2022, Amphenol expects sales to be in the range of $2.690bn to $2.750bn, representing 13% to 16% growth over the first quarter of 2021, and Adjusted Diluted EPS in the range of $0.59 to $0.61, representing 13% to 17% growth over the first quarter of 2021.
“Despite the ongoing challenges and uncertainties, we continue to face around the world, we are very pleased with the platform of strength that has been created by the Company’s superior performance in 2021,” Mr. Norwitt continued. “The revolution in electronics is accelerating, thereby creating exciting and dynamic long-term growth opportunities for Amphenol across each of our diversified end markets. Indeed, the last two pandemic-impacted years have revealed more than ever before the importance of innovative, new electronic applications. We believe these opportunities will enable a further, long-term increase in the demand for our expanding range of high-technology interconnect, sensor and antenna products. Our ongoing drive to leverage our competitive advantages and create sustained financial strength, as well as our initiatives to expand our product offerings, both organically and through our acquisition program, have created an excellent base for the Company’s future performance. In addition, we continue to take steps to further scale our unique, entrepreneurial organization to support the Company’s long-term growth potential, including the alignment of our business units into three new Divisions. I am confident in the ability of our outstanding entrepreneurial management team to continue to dynamically adjust to changing market conditions, to capitalize on the wide array of growth opportunities that arise in all market cycles and to continue to generate sustainable long-term value for our shareholders and other stakeholders. Most importantly, I remain truly grateful to our team for their extraordinary efforts to protect the safety and health of our employees around the world throughout the ongoing pandemic, all while continuing to strongly support our customers and drive outstanding operating performance.” (Source: BUSINESS WIRE)
26 Jan 22. CACI Reports Results for Its Fiscal 2022 Second Quarter.
Revenues of $1.5bn
Net income of $90.3 m and Diluted EPS of $3.83
Adjusted net income of $103.6 m and Adjusted diluted EPS of $4.39
Adjusted EBITDA of $158.0 m and Adjusted EBITDA margin of 10.6%
Robust cash flow from operations and free cash flow
Contract awards of $2.0bn
CACI International Inc (NYSE: CACI), a leading provider of expertise and technology to government enterprise and mission customers, announced results today for its fiscal second quarter ended December 31, 2021.
John Mengucci, CACI President and Chief Executive Officer, said, “We delivered solid results in the second quarter, with organic growth, healthy profitability, and robust cash flow. Contract awards were strong and included nearly $600 m of classified contracts, demonstrating our differentiation and the value of investing ahead of customer need to address critical national security and modernization priorities. We continued to execute on our flexible and opportunistic capital deployment strategy, making two acquisitions that enhance our capabilities and customer footprint in high-value areas of our addressable market. CACI remains well-positioned to deliver long-term growth, margin expansion, and shareholder value.”
Second Quarter Results
Revenues in Q2 FY22 increased 1 percent year-over-year organically. The year-over-year decrease in income from operations was driven primarily by unusually high profitability in the year-ago quarter, which was partially due to low cost of delivery on fixed-price programs and lower travel and medical expenses related to the COVID-19 pandemic. Diluted earnings per share and adjusted diluted earnings per share decreased due to lower income from operations, higher interest expense, and a higher tax rate, partially offset by a lower share count as a result of the $500 m accelerated share repurchase announced in March 2021. The decrease in cash from operations, excluding MARPA, was driven by a $21m benefit from deferred payroll taxes under the CARES Act in the year-ago quarter and a $47m repayment of deferred payroll taxes in the current quarter. Excluding the CARES Act impacts, both cash from operations and free cash flow would have increased when compared to Q2 FY21.
Second Quarter Contract Awards
Contract awards in Q2 FY22 totaled $2.0 bn, with approximately 70 percent for new business to CACI. Awards exclude ceiling values of multi-award, indefinite delivery, indefinite quantity (IDIQ) contracts. Some notable awards during the quarter were:
- A new five-year, single-award task order, with a ceiling value of $514m, to provide network modernization of outside plant (OSP) infrastructure and facilities across major U.S. Army locations within the continental United States. Awarded by GSA FEDSIM under the Alliant 2 contract vehicle, CACI engineers, managers, and technicians will deliver enterprise technology to enhance capabilities and improve capacity needed for an underground fiber optic cable infrastructure required to support robust, reliable, high-speed voice, video and data networks for critical command and control systems.
- Approximately $600 m in previously unannounced awards on classified contracts with federal government customers supporting national security.
Total backlog as of December 31, 2021 was $24.1bn compared with $22.4bn a year ago, an increase of 8 percent. Funded backlog as of December 31, 2021 was $3.1bn compared with $2.9bn a year ago, an increase of 7 percent.
Additional Second Quarter Highlights
- CACI completed its acquisition of SA Photonics, Inc., a leading provider of innovative multi-domain photonics technologies for free-space optical (FSO) communications. Together, CACI’s Photonic Solutions and SA Photonics will address a broader market spanning high-end manned flight programs to the value based proliferated Low-Earth Orbit (LEO) market that the Space Development Agency (SDA) and the U.S. Space Force are seeking. CACI will offer the most advanced photonics engineering and manufacturing capabilities in the U.S. by adding two major facilities in California and Florida to its existing footprint in New Jersey.
- CACI acquired ID Technologies (IDT), an innovative enterprise IT, Infrastructure-as-a-Service, and network modernization provider with NSA- compliant Commercial Solutions for Classified (CSfC) technology. The acquisition closed on December 29, 2021 with a total purchase consideration of $225 m. The acquisition expands CACI’s secure network modernization capabilities with CSfC software equipping U.S government workers with modern devices to operate virtually anywhere within essential systems that are vital to national security. Additionally, CACI will leverage IDT’s capabilities in product and engineering solutions to deliver on our customer’s cloud, network, and end-user initiatives.
- CACI Board Member, The Honorable Susan M. “Sue” Gordon, received the William H. Webster Distinguished Service Award on Dec. 1, 2021. Ms. Gordon was recognized for her significant contributions to the Intelligence Community and was named as one of the United States’ most accomplished national security leaders.
- CACI’s Lt. Gen. Michael Nagata, U.S. Army (Ret.), Corporate Strategic Advisor and Senior Vice President, received the National Defense Industrial Association’s (NDIA) Special Operations/Low Intensity Conflict (SO/LIC) DeProspero Lifetime Achievement Award on November 4, 2021. The DeProspero Lifetime Achievement Award recognizes sustained, distinguished service and is presented annually to an individual who has made distinctive lifetime contributions with significant impact in the areas of Special Operations, Low Intensity Conflict, or Irregular Warfare.
- CACI entered into a partnership with Yubico through a memorandum of understanding that establishes Yubico as the exclusive provider of multi-factor authentication (MFA) solutions in support of CACI’s trusted mobile platforms. Yubico will provide YubiKey 5 FIPS Series products for enhanced security and authentication protocols for CACI’s software-defined key loading devices that enable more capable, secure, and resilient communications for U.S. government missions. (Source: BUSINESS WIRE)
26 Jan 22. CACI Acquires Enterprise Modernization and Secure Communications Provider ID Technologies. CACI International Inc (NYSE: CACI) announced today it acquired Ashburn, Virginia-based ID Technologies, an innovative enterprise IT, Infrastructure-as-a-Service, and network modernization provider with NSA-compliant Commercial Solutions for Classified (CSfC) technology. The acquisition of ID Technologies expands CACI’s secure network modernization capabilities with CSfC software equipping U.S. Government workers with modern devices to operate virtually anywhere within essential systems that are vital to national security. Additionally, CACI will leverage ID Technologies’ capabilities in product and engineering solutions to deliver cloud, network, and end-user initiatives to customers.
The combined companies will offer Department of Defense, federal civilian agencies, and Intelligence Community customers with complementary software- and Agile-at-scale solutions that support next generation use cases, including digital transformation, mobile and tactical solutions at the edge, and space. With ID Technologies’ CSfC-compliant solutions, customers can support more dispersed workforces by directly addressing today’s secure network and remote access challenges while also leveraging scalable, repeatable technology to deliver the future of network modernization.
John Mengucci, CACI President and Chief Executive Officer, said, “The joining of our companies enhances CACI’s technology for both enterprise and mission customers who require CSfC-compliant device solutions and access to sensitive or classified data from remote locations. With ID Technologies, CACI can accelerate end-user mobility and the use of communication outside of secure government-run facilities using secure software-at-scale. ID Technologies’ innovative offerings include Infrastructure-as-a-Service business models making it easy for customers to embrace the technology and positioning CACI to expand the customer portfolio.”
Prior to the acquisition, ID Technologies was part of The Acacia Group (“Acacia”) portfolio. Gibson, Dunn & Crutcher served as legal advisors to CACI on the transaction. The acquisition closed on December 29, 2021 with a total purchase consideration of $225 m.
(Source: BUSINESS WIRE)
26 Jan 22. IFS delivers another market beating year with software growth at 22%.
- Overall share of software revenue at 73% with cloud revenue growing at 105% year on year
- Recurring revenue up 30% year on year
- Service Management performance up 76% year on year
IFS, the global cloud enterprise software company, today announced its financial results for the full year ending December 31, 2021.
The company saw a 22% growth in software revenue in 2021, with cloud revenue going strong at a 105% increase year on year despite Covid-19 headwinds. Our ability to enable our customers to deliver outstanding Moments of Service™ quarter after quarter has been essential for IFS in achieving sustained growth over the last two years, with a 2020/2021 CAGR (compound annual growth rate) of 22% in software revenue and 36% in recurring revenue.
Across industries, companies evolved their business models by leveraging digital technologies and driving innovation into their services, outcomes and/or products in a bid to differentiate and gain competitive advantage in uncertain times. The need for companies to build adaptability in their organisational set up, as well as agility in their responses to shifting customer and consumer demands became crystal clear.
Some key milestones for IFS in 2021 included:
- In February: The company’s rebranding celebrated 30+ years of success brought together under the promise of always delivering great Moments of Service™. The launch itself was acclaimed and secured multiple awards**.
- In March: The launch of IFS Cloud™, a tech rich single cloud product with embedded digital innovation that delivers a clear path to Evergreen and a lower TCO. The product also earned the company several awards***.
- In April: The launch of IFS’s sustainability strategy and pledge to become carbon neutral by 2025 as well as the appointment of Lewis Pugh as IFS’s Sustainability Ambassador.
- In June: The acquisition of ITSM and ITOM provider Axios Systems to extend the company’s service offering.
- In July: The acquisition of Customerville, already used by IFS in its Voice of the Customer program, and poised to help IFS customers deliver great Moments of Service™.
- In October: The company announced the winners of its first Change for Good Sustainability Awards which saw over 35 global companies partake, as well as the launch of IFS Cloud’s latest release including the new sustainability module.
- In November: The launch of IFS assyst 11.4 which brings digitised IT self-service to the entire organisation through a much-simplified enterprise pricing model.
IFS CEO Darren Roos commented: “Four consecutive years of double-digit growth is something the entire organisation is hugely proud of, particularly in view of the challenging circumstances we’ve experienced since 2020. He added: “in 2021, our goal to help companies deliver their greatest Moments of Service™ also became a reality through our M&A strategy. We successfully integrated two companies into IFS and, since our acquisition of Axios Systems in June, have increased subscription bookings for IFS assyst by 236% compared to the same period in 2020.” Roos continued: “the numbers paint the picture of a strong and healthy business and I am particularly delighted that we are not compromising on any other metrics to achieve this level of sustained growth.”
IFS Chief Financial Officer, Constance Minc, commented: “The 2021 results are very important because they cement IFS’s impressive performance trajectory with another year of double-digit software revenue growth while continuing to expand our margins. Our commitment to lead the industry in customer satisfaction, growth and profitability is unchanged.”
Throughout the year, IFS has continued to nurture its customer-first culture by strengthening its service organisation and its partner ecosystem as well as maintaining an active involvement in the work delivered by the IFS Foundation in Sri Lanka, a nation that is home to over 1,500 IFS employees.
Financial* and Operational Highlights for FY 2021
FY2021 software revenue was SEK bn 4,928, an increase of 22 percent versus 2020
FY2021 recurring revenue was SEK bn 4,061, an increase of 30 percent versus 2020
FY2021 cloud revenue increased 105 percent versus 2020
FY2021 net revenue was SEK bn 6,767, an increase of 14 percent versus 2020
*Note: all figures based in Swedish Krona and reported in constant currency.
In line with WorkWave establishing itself as a standalone business at the end of Q2 2021, the performance reported above excludes WorkWave’s contribution to the IFS Group. Performance including WorkWave saw software revenue grow at 32% YTD and the IFS Group reach $984M USD revenue in 2021.
25 Jan 22. Pennant’s recovery on track. A small-cap company has won a valuable contract to supply simulated training systems for the British Army’s new Apache AH-64E helicopter fleet.
- Named key supplier by Boeing in connection with the “Major Programme”
- Contract worth £9m in revenue across three years
Pennant (PEN:35p), an Aim-traded supplier of products and services that train and assist engineers in the defence and civilian sectors, has been named as a key supplier by Boeing in connection with the “Major Programme” the UK company had highlighted in early December.
Analysts at brokerage WH Ireland expect that the £9m contract will be spread over three years. Pennant will supply simulated training systems for the British Army’s new 50 Apache AH-64E helicopter fleet as part of Boeing’s contract with the UK’s Ministry of Defence.
In a pre-close trading update the previous day, Pennant had revealed that £10m of its £22m contracted order book is scheduled for delivery in 2022, so the additional Boeing contract increases revenue visibility materially – WH Ireland forecast annual revenue of £17m and pre-tax profit of £0.6m in 2022, reversing a £0.6m expected loss in 2021. In addition, a software and analytical services contract with a new customer in the commercial aviation sector has now been signed off and will contribute to the 2022 result. It will contribute revenue of US$1.1m (£0.8m) in its first year. The group’s software division accounted for well over a third of Pennant’s revenue last year and is reaping the benefits of cross-selling opportunities across an enlarged client base.
The shares have started to make headway from the 30p level when I highlighted the potential for an earnings recovery (‘An undervalued micro-cap on the road to recovery’, 22 September 2021). If the contract momentum continues to build, as I expect it will, then expect earnings upgrades to follow.
Importantly, unrealised tax losses of £4.5m carried forward will benefit future taxable profits to accelerate the earnings recovery for the £12.5m market capitalisation company, while net debt of £3.6m is set to be slashed when a £2m cash milestone on a legacy contract is invoiced in the first half of this year. Buy. (Source: Investors Chronicle)
25 Jan 22. Tekever Raises $23m for Maritime Surveillance Drones. Tekever, which makes AI-integrated drones specifically tailored to monitor and detect activity on the water, has raised €20m (nearly $23m at today’s rates). Ventura Capital led the round with participation from Iberis Capital and a number of unnamed strategic investors from the maritime industry. It will use the funds to hire more staff and continue to expand its technology.
Tekever – appropriately based in historic maritime superpower Lisbon, Portugal – was founded back in 2001 and has only been offering commercial services since 2018. But it’s been profitable for some time and expects annual growth of 60% over the next three years. In fact, this is the company’s first outside funding to double the expansion of its technology and sales to a broader set of organizations as business opportunities grow.
Tekever’s customers include governments and their agencies, who use the company’s services to monitor water bodies for illegal activity; and private shipping and other maritime companies, who use the drones to track weather patterns, water traffic, and other physical activities that could affect their businesses.
Tekever was founded by a team of intelligence and AI specialists, and co-founder and CEO Ricardo Mendes describes it as a vertically integrated company in which it designs and manufactures both its drones and the technology loaded on them to monitor and “read” them. what’s going on in the water below, and even predict what might happen next.
A vertically integrated drone company isn’t uncommon, but slightly more unusual is the order in which Tekever built its stack.
“We started from the opposite direction of every other company in the drone space,”
The company first set about developing the technology to read its terrain — bodies of water in its case — and then built drones fit for the purpose of making its software work. This included special antennas, sensors and power supply integrated into the body of the aircraft itself. (This also makes it essentially impossible for the software to work on other planes at this point.) The software, meanwhile, is designed to work with a mix of edge AI, satellite communications and cloud computing.
Building your own very custom drone hardware is difficult (and expensive). But that was on purpose, as it turns out. Tekever sells both components, but mostly operates its own fleet and sells drone-based surveillance services to users that run under the Atlas brand, which Mendes described to me as “intelligence as a service.” He said a special approach was taken to make his products as accessible as possible because his drones – with wingspans ranging from two meters to eight meters and flight times of up to 20 hours – were too expensive. unaffordable for all but the very largest customers.
“The question we wanted to answer was, ‘What do you need to do to make this easy and available around the world, not just for the richest nations?’” he said. “The drones are just part of the chain.”
Examples of how Tekever is used include both the European Maritime Security Agency (EMSA) and UK Home Office clients, as well as smaller African republics. They use the technology in a variety of ways to monitor their waters for vessels engaged in piracy, drugs, human trafficking, migrant smuggling, pollution, illegal fishing, or infrastructure security threats.
A recent report in the Guardian revealed how European government agencies are investing ms of euros in drones and other military technology to scale up their surveillance of groups of refugees, with the clear message that these investments do not discourage illegal migration, only encourage vulnerable people to do so take even riskier paths. Others in space like Anduril have arguably reaped huge financial rewards at the expense of their own controversy. But the CEO and founder of Tekever believes that his company not only fills a specific technical gap in the market, but that its commitment does more good than harm.
“When you’re talking about huge regions like the ocean, there are a lot of unknowns about what’s going on,” he said. Traditionally, organizations have relied on satellite imagery to get pictures of what’s going on in the water, but that’s not ideal as most satellite imagery is days old by the time a user sees it. “Fisheries, smuggling, human trafficking, immigration – these are all areas where real-time information is required. It’s not just footage, it’s the start of solving the problem. The goal is that you should be able to act before something bad happens” and because Tekever also uses predictive analytics to preview what is to come.
“We collect massive amounts of data to solve problems as they arise,” he said, noting that even five extra minutes for the response can make a difference because conditions in the water can change so quickly. For the UK Home Office, for example, he noted that a priority was identifying migrant boats in the English Channel in order to escort them ashore and avoid potentially tragic accidents. “The press focuses on the migration problem itself, but it’s a huge humanitarian problem,” he said.
Going forward, there’s a myriad – even a sea – of ways Tekever could advance its technology. Studying and understanding water bodies requires processing huge amounts of data, Mendes said, but that also gives the company a large number of datasets that could be used as well. It is not yet able to read submarine activity, which today requires lidar and radar on seagoing vessels to identify it; but that’s an area where it’s starting to develop. Another is to identify and classify oil spills, he said.
For now, Tekever remains focused on what Mendes described to me as “the blue economy,” but it’s also breaking new ground on… soil. His focus seems to be to keep trying to create new ways of looking at the most complicated of terrains. One area where he wants to do more is the forest, and the rainforest in particular. It invested in a Brazilian drone company, Santos Lab, a few years ago, gaining a foothold in that part of the world.
“Tekever is a very unconventional UAS company and a market leader with world-class technology, thousands of hours of operation, an experienced leadership team and a phenomenal and profitable business vision in a rapidly growing market,” said Mo El Husseiny, Managing Partner at Ventura Capital, in a statement . “These attributes have made it a flagship investment for Ventura, aligned with our portfolio of technological disruptors.”
“Tekever is one of the hottest European deeptech scaleups and we are very proud to continue working with the team and helping them revolutionize the global market,” added Diogo Chalbert Santos, Partner at Iberis Capital. “It’s amazing what Tekever has already achieved as a bootstrap company, and I’d say the sky’s the limit in this round.” (Source: UAS VISION/TechCrunch)
25 Jan 22. Raytheon sales forecast disappoints as profit beats estimates. Raytheon Technologies Corp (RTX.N) on Tuesday forecast full-year sales below Wall Street estimates, even as demand for the company’s aerospace products and services benefited from a surge in air travel during the holiday season.
Raytheon forecast full-year sales for 2022 to be in the range of $68.5bn to $69.5bn, below the average Refinitiv-IBES estimate of $70.09bn.
Its shares were down about 2% in morning trading in New York
Raytheon reported adjusted quarterly profit that beat market estimates. Sales fell 10% in its key missile and defense business, where demand remained strong but higher prices, labor shortages and supply chain constraints reduced its ability to make deliveries.
The U.S. government’s decision ahead of the holidays to open its borders to vaccinated individuals from abroad helped the wide-body aerojet aftermarket recover, driving demand for Raytheon’s aircraft cabin interiors and engines.
“We’re expecting continued commercial aero recovery, particularly on the backs of the international border reopenings and widebody aircraft returning to the air,” Raytheon Chief Financial Officer Neil Mitchill told Reuters in an interview.
Easing coronavirus restrictions also translated into higher demand for Raytheon’s Collins Aerospace systems as well as its space and missile units, even as manufacturers across various sectors were hit by pandemic-induced logistical problems.
Raytheon, whose Pratt and Whitney unit supplies aircraft engines to companies like Boeing Co (BA.N) and Airbus SE (AIR.PA), said fourth-quarter revenue rose to $17.04bn from $16.42bn a year earlier.
Raytheon’s missile business was given a boost when competitor Lockheed Martin (LMT.N) disclosed the Federal Trade Commission’s opposition to its planned purchase of rocket motor maker Aerojet Rocketdyne. read more Raytheon has been a vocal opponent of the deal.
Aerojet develops and manufactures liquid and solid rocket propulsion, air-breathing hypersonic engines, and electric power and propulsion for space, defense, civil and commercial applications. Its customers include the Pentagon, NASA, Boeing, Lockheed Martin, Raytheon Technologies, and the United Launch Alliance.
Raytheon’s net income rose five-fold to $686m, or 46 cents per share, in the fourth quarter ended Dec. 31 from a year earlier.
On an adjusted basis, Raytheon posted a profit of $1.08 per share, beating analysts’ average estimate of $1.02. (Source: Reuters)
25 Jan 22. GE’s shares fall as supply-chain woes hit Q4 revenue. General Electric Co on Tuesday reported a decline in quarterly revenue amid persistent global supply chain disruptions, sending its shares lower.
The Boston-based industrial conglomerate’s shares also suffered because of a confusion caused by its new reporting format, which the company moved to after selling its jet-leasing business and folding its capital business into its corporate operations.
Jeff Windau, an analyst at Edward Jones, said the difference in numbers under the old and new formats has left the trading community confused.
“Today’s weakness is the result of a less-than-clean quarterly report,” Windau said.
GE’s shares were down 7% at $90.03 in mid-day trade.
Tuesday’s earnings report added to investor worries about supply shortages and inflationary pressure.
GE said it was grappling with supply-chain issues across all of its businesses, but the problem remained most acute at its healthcare unit.
They are driving up its transportation and raw materials costs, adversely impacting its onshore wind business.
In response, the company is raising prices and trying to keep a lid on costs. It is scouting for new suppliers, sourcing alternative parts and redesigning product configurations.
But Chief Executive Larry Culp said a resolution remains elusive.
“I don’t see the brink of a resolution just yet,” he told Reuters in an interview. “We will see a little bit more inflation pressure in 2022.”
Culp said while GE is doing a better job in adjusting its prices, the company is finding it harder to pass along the increased costs in longer-cycle businesses such as power and renewables.
As a result, he said the company will not be able to fully offset higher costs with price increases.
GE is not alone. Companies of all sizes are grappling with inflationary pressures as the COVID-19 pandemic has caused bottlenecks in supply chains, driving up costs for everything from labor to raw materials.
Shares of GE’s rival Siemens Energy (ENR1n.DE) have been tumbling since the German company’s wind power division Siemens Gamesa (SGREN.MC) cut its financial outlook for the third time in nine months on supply chain issues and a surge in costs for vital materials such as steel. read more
GE’s onshore wind business is also taking a hit from lingering uncertainty over whether U.S. production tax credits for onshore wind investments will be extended over the long term.
Windau of Edward Jones has lowered estimates for GE’s 2022 earnings as he expects its renewable energy business to be more pressured this year.
Culp said the company has work to do in fixing the business.
GE, which has announced it will split into three public companies, expects to return to revenue growth this year on the back of a more than 20% increase in aviation revenue.
It also forecast higher profit and free cash flow for 2022. But it expects to burn cash in the first quarter, which tends to be the company’s weakest quarter.
The 2022 earnings estimates are based on GE’s new reporting format.
GE expects adjusted profit in the range of $2.80 per share to $3.50 per share in 2022, compared with $1.71 per share last year. Full-year free cash flow is estimated at $5.5 bn-$6.5bn, up from $2.6 bn in 2021.
In its new format, the group will no longer report GE Capital, its financial services division, as a standalone business segment.
The company generated $20.3 bn in revenue in the fourth quarter, down 3% from a year ago and below the $21.5 bn estimated by analysts surveyed by Refinitiv.
Under the old format, GE’s adjusted earnings for the quarter came in at 92 cents per share, beating the consensus estimate of 85 cents a share.
24 Jan 22. FTC Moves to Block Lockheed Buying Aerojet Rocketdyne.
Regulators say the deal would harm Lockheed’s rivals.
The Federal Trade Commission said it would sue to block Lockheed Martin’s long-proposed $4.4 bn acquisition of Aerojet Rocketdyne.
“The agency’s complaint alleges that if the deal is allowed to proceed, Lockheed will use its control of Aerojet to harm rival defense contractors and further consolidate multiple markets critical to national security and defense,” the FTC said in a statement on Tuesday.
Lockheed could defend the acquisition of the rocket manufacturer in court or back away from the deal.
“We will review the lawsuit and evaluate all of our options,” Taiclet said Tuesday on the company’s quarterly earnings call.
Antitrust regulators are unhappy with the structure of a Lockheed proposal that would allow it to provide rocket engines to its competitors, the company said in a securities filing earlier Tuesday.
“We have been advised by the FTC that its concerns regarding the transaction cannot be addressed adequately by the terms of a consent order,” Lockheed said in a Tuesday SEC filing. “We believe it is highly likely that the FTC will vote to sue to block the transaction and expect they will make a decision before January 27, 2022.”
Lockheed has 30 days to determine whether it will go to court or terminate the deal, which was announced in December 2020. At the time, it was seen as being an early test of how the Biden administration would handle defense mergers and acquisitions.
“Aerojet Rocketdyne continues to believe in the benefits of the transaction for the United States and its allies, the industry, and all of the company’s stakeholders,” the company said in a statement.
The announcement comes as the Pentagon is playing catch-up to China and Russia in its fielding of hypersonic weapons. Aerojet Rocketdyne is a key hypersonic weapon supplier. Lockheed has said buying Aerojet would allow it to move quicker in its hypersonic weapon development.
“The combined firm could disadvantage rivals by affecting the price or quality of the product, the quality of the engineering support, and the schedule and contract terms for developing and supplying it or otherwise disadvantage its rivals,” the FTC said. “As a subcontractor, Aerojet also has had access to prime contractors’ sensitive information about technological advancements, cost, schedule, and business strategies. The complaint alleges that post-acquisition, Lockheed would have an incentive to exploit its access to its rivals’ proprietary information to gain an advantage in competitions against them.”
Sen. Elizabeth Warren, D-Mass., who opposed Lockheed’s acquisition of Aerojet, said she supported FTC commissioners’ unanimous decision to block the deal.
“After decades of mergers, the defense industry is left with a few giant firms that aim to buy up key suppliers and stomp out competition,” Warren said in an emailed statement. “I support the FTC taking aggressive action to oppose further corporate concentration in the defense industry that could threaten U.S. national security.”
Lockheed rival Raytheon Technologies, which buys rocket motors from Aerojet Rocketdyne and is based in Massachusetts, has been a vocal opponent of the sale.
“Having a strategic supplier like that owned by our biggest competitor we thought would be problematic from a competition standpoint,” Raytheon CEO Greg Hayes said on CNBC Tuesday morning. “You go with a consent decree, it’s still problematic in terms of who gets the supply when there’s a shortage because is it going to be the company that owns you, or the other company that you have to supply in the marketplace.”
The Trump administration allowed Northrop Grumman to buy rocket-maker Orbital ATK with a condition that it provide rocket motors to its competitors. Boeing said Northrop’s acquisition of Orbital ATK prevented it from bidding on an $85 bn Air Force intercontinental ballistic missile contract.
“The FTC during the Biden Administration has taken a different view on market concentration and vertical integration than the last one, which approved the Northrop Grumman-Orbital ATK deal,’ Byron Callan, an analyst with Capital Alpha Partners, wrote in a note to investors Tuesday. “We don’t, however, see the current FTC move as one that throws defense [mergers and acquisitions] into the deep freeze.” (Source: Defense One)
24 Jan 22. Anduril nets biggest DoD contract to date: Signifier or outlier for defense start-ups?
“This is hugely significant in that it sends a signal that start ups and non-traditional companies can actually succeed in the federal marketplace,” said Bill Greenwalt, former deputy undersecretary of defense for industrial policy.
Anduril Industries won its largest contract to date last week, a nearly $1 bn contract with Special Operations Command, in a victory that highlights the high-dollar potential that nontraditional contractors can have in a military contracting system usually dominated massive corporations.
“This is hugely significant in that it sends a signal that start ups and non-traditional companies can actually succeed in the federal marketplace,” said Bill Greenwalt, former deputy undersecretary of defense for industrial policy and current nonresident senior fellow at the American Enterprise Institute.
Anduril will serve as a systems integrator partner on SOCOM’s counter-unmanned systems efforts. The contract is worth a maximum of $967,599,957 over the next the decade. Under the contract, SOCOM will be able to purchase Anduril’s systems through traditional means, in addition to buying Anduril’s products as a service, meaning the command can configure the system “based on mission profiles and ensuring SOCOM can rapidly adapt to new and evolving threat profiles.”
According to the company press release, the company will “deliver, advance, and sustain CUxS capabilities for special operations forces wherever they operate.” It will provide counter-drone capability through its Lattice AI platform, which is designed to autonomously identify and classify threats. The system will be deployed both domestically and overseas, the Jan. 20 announcement stated.
Anduril has made major strides in the last year positioning itself to win major defense contracts and augment its technology portfolio. Last year, it acquired Area-I, a tube-launched unmanned aerial system maker. Last summer, the company won a five-year, $99 m production other transaction agreement with the Pentagon’s Defense Innovation Unit for its counter-drone tech.
In September, it bought Copious Imaging, whose technology added another layer of threat detection to Anduril’s air defense portfolio.
Arundil took on 11 other competitors for the latest contract win, according to the DoD.
“The evolving unmanned aerial threat requires flexible, adaptable, and rapidly deployable technology approaches,” said Brian Schimpf, Anduril co-founder and CEO, in a statement. “With the Lattice CUxS family of systems, Anduril is well-equipped to deliver the solutions SOCOM needs today and in the future.”
While Anduril may serve as a posterchild for the potential success startups can have in the federal marketplace, Greenwalt noted that SOCOM traditionally is better than the other services at harnessing innovation and other services still need to improve.
“It is no surprise that this award came from SOCOM which has been the most forward-leaning entrepreneurial segment of the Department of Defense for the past several decades,” Greenwalt said. “Taking risks and choosing what is best for soldiers, sailors, airmen, and Marines seems to be embedded in the SOCOM culture.”
He lamented, however, that that “culture is not yet ingrained in the larger military services that are highly risk-averse and have been poor partners for startups and non-traditional firms who might propose and develop revolutionary technological solutions.”
Breaking Defense previously reported that for the Pentagon, “time is running out with Silicon Valley,” as Katherine Boyle, a partner with venture capital firm Andreessen Horowitz, put it in a tweet, echoing industry executives frustrated with how difficult it is to do business with the big military.
“People are watching. Is this an area where people can actually make big money?” Joe Lonsdale, managing partner at the 8VC venture capital group and a founder of Palantir, asked during a Dec. 4 panel at the Reagan Defense Forum. “So far, we haven’t seen big wins.”
It remains to be seen if Anduril’s contract signals a broader turning of the tide. (Source: Breaking Defense.com)
25 Jan 22. Airbus Helicopters bounces back in 2021. In 2021, Airbus Helicopters logged 419 gross orders (net: 414) showing solid signs of recovery from the 2020 market situation which was heavily impacted by the economic consequences of the COVID-19 pandemic. (2020 – 289 gross/ 268 net orders). The increase in orders for light helicopters, H125 and H130, reflects the recovery of the civil and parapublic market. The Company saw strong momentum from its home countries, with France ordering 40 H160s (civil and military versions), eight H225Ms, and two H145s, Spain ordering 36 H135s, and Germany procuring eight H145s for the Bavarian police force. Deliveries increased from 300 in 2020 to 338 in 2021, contributing to Airbus Helicopters’ preliminary 52 % share of the civil and parapublic market and confirming its position as market leader. In number of aircraft units, Airbus Helicopters recorded a net book to bill ratio above one.
“2021 was a year of major commitments for Airbus Helicopters. We committed to developing new products and services that fulfil our customers’ requirements such as launching the development of an innovative H160M for the French armed forces’ joint light helicopter programme and creating the new service package HCare Classics for customers that operate our legacy helicopters. We also delivered the first ever H160 to Japanese operator All Nippon Helicopter. It is our duty to innovate and to pioneer sustainable aerospace and to that end we have begun implementing the use of sustainable aviation fuel and pursued our urban air mobility journey with the unveiling of CityAirbus NextGen,” said Bruno Even, Airbus Helicopters CEO. “I’m proud of our teams that have worked hard to deliver all of these achievements. Their commitment to our Airbus values of teamwork, reliability, and integrity will enable us to continue working on securing the supply chain and to deliver on our continuous improvements to ease the operations of our customers. I especially value the trust that our customers place in our people, our products, and our services to help them perform their essential missions every day.”
The Company ramped up its five-bladed H145 deliveries in 2021 as well as delivered the first five-bladed H145 retrofit to DRF Luftrettung, a German helicopter emergency medical services operator, at the end of May. Other key deliveries the first H225M for Singapore in March as well as the first H225M in a naval combat configuration for Brazilian Navy, and the first NH90 TTH for Qatar which was delivered ahead of schedule. In North America, the US Army took delivery of the first UH-72B from the Airbus Helicopters factory in Columbus, Mississippi and the Lakota fleet reached the major milestone of one m flight hours.
Order highlights for 2021 consist of 93 H145s and 52 H160s including the first batch of H160Ms for the French armed forces as well as 10 H160s for the Gendarmerie Nationale – the first law enforcement customer for the model. Airbus Helicopters also expanded its partnership with The Helicopter Company in Saudi Arabia, which added 20 H145s and 6 ACH160s to their growing fleet of Airbus helicopters. The H225 saw 2021 kicking off to a good start with its long-standing customer, the Japan Coast Guard, ordering an additional two helicopters to its fleet in March.
Airbus Helicopters’ suite of HCare offerings continue to convince customers of their value add with new and returning customers such as Air Methods who signed an additional contract in February to cover 80 EC135s. The Company expanded its range in 2021 with HCare Classics, a custom-made set of services for its legacy fleet of approximately 2,000 in-service H120, Dauphin, Puma and Gazelle helicopters. HDataPower is an example of Airbus Helicopters’ ongoing commitment to digitalisation and harnessing the benefits (time savings, higher fleet availability, optimised costs) that it can proffer to customers with Helionix-equipped aircraft by leveraging data generated by helicopter systems.
2021 was an essential and exciting year for innovation and product improvement at Airbus Helicopters. The H125 performance increase received both its EASA and FAA certification enabling operators to take full advantage of the 10% power increase provided by the Arriel 2D engines. The Company also added the H175M to its military product portfolio. The VSR700, Airbus’ unmanned aerial system, began its flight envelope expansion ahead of sea trials later this year.
2021 was especially instrumental to the Company’s decarbonisation roadmap. The helicopter Flightlab started flight testing new technologies, including the engine back-up system which not only aims to deliver safety improvements but is also a fundamental first step on the road to hybridisation. Airbus Helicopters also launched a SAF User Group dedicated to the rotary-wing community in an effort to accelerate the deployment of biofuels, began using sustainable aviation fuel for its training and flight tests at it main sites in France and Germany, and ended the year by flying an H225 with one engine powered by 100% SAF. One of the key highlights came in September 2021 at the Airbus Summit when Airbus Helicopters unveiled CityAirbus NextGen, its new prototype designed to deliver zero emissions flight in urban environments. The fully electric vehicle for the Urban Air Mobility market is just one of the reasons Airbus Helicopters is looking to recruit 500 people in 2022.
25 Jan 22. Leonardo says it is not subject of Kuwait Eurofighter investigation. Italian defence group Leonardo (LDOF.MI) is not the subject of a judicial investigation into the Kuwait Eurofighter programme, the company said on Tuesday, adding that its deal to supply 28 jets is proceeding in line with the agreed contract. Leonardo shares fell as much as 8% earlier on Tuesday, extending losses from the previous session, with traders attributing the drop to an investigation into the Kuwait deal. Kuwait has referred two senior army officers to the public prosecutor over suspected corruption related to the deal to buy Eurofighter Typhoon jets, the state anti-corruption body said on Monday. read more
Leonardo said its contract with Kuwait “has always been based on the principles of maximum transparency as well as full fairness” and that every transaction is subject to rigorous checks.
Kuwait signed a 8bn euro ($9.04 bn) contract with Leonardo in 2016 for a total of 28 aircraft, the first two of which were delivered last month.
Leonardo said on Tuesday that “others will follow as per plan”.
Shares in Leonardo were down 4.3% at 1217 GMT, making it the biggest loser on a little-changed Milan blue-chip index. (.FTMIB) (Source: Google/Reuters)
24 Jan 22. Crane Co. Reports 2021 Results and Provides 2022 Guidance.
Highlights from Full Year 2021 Results and 2022 Guidance from Continuing Operations
- GAAP earnings per diluted share (EPS) of $6.66 compared to $2.77 in 2020.
- Record EPS, excluding Special Items, of $6.55 increased 87% compared to 2020.
- Record operating margin of 15.8%.
- Record free cash flow of $415 m (cash provided by operating activities less capital spending).
- Core year-over-year sales growth of 12% and core year-over-year order growth of 19%.
- Introducing 2022 GAAP EPS guidance of $6.85-$7.25.
- Excluding Special items, 2022 EPS guidance is $7.00-$7.40, reflecting 10% earnings growth compared to 2021 at the midpoint.
Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered industrial products, reported fourth quarter and full-year 2021 financial results, and provided its full-year 2022 outlook.
Max Mitchell, Crane Co. President and Chief Executive Officer stated: “I remain so incredibly proud of how all of our global teams across Crane performed throughout the challenges of the last two years. Our success reflects the dedication and commitment of our 11,000 associates who embody the best of Crane’s strong culture, and who create value for our customers and all of our stakeholders every day with their passion and innovation.
“That culture and passion was clearly apparent in our phenomenal 2021 results, with record adjusted EPS, operating margin, and free cash flow despite the year’s difficult and uncertain environment. We also made further progress positioning Crane for sustainable value creation in the decade ahead through continued innovation and investments in our technology roadmaps that will drive organic share gains and outperformance vs. peers as our end markets continue to recover.
“Looking to 2022, our performance momentum continues, and we are confident in the strength of our three growth platforms and our demonstrated ability to successfully deliver strong results in the current environment. Despite continued uncertainty related to COVID and other operating conditions, we are introducing initial 2022 adjusted EPS from continuing operations guidance of $7.00-$7.40, reflecting 10% growth at the midpoint compared to our record 2021 earnings. That earnings momentum, along with consistently strong cash flow, will enable us to drive further value through continued organic investments, as well as through capital deployment and inorganic growth in 2022 and beyond.”
Full Year 2021 Results from Continuing Operations
Full year 2021 GAAP earnings from continuing operations per diluted share (EPS) of $6.66, compared to $2.77 in 2020. Excluding Special Items, full year 2021 EPS from continuing operations was $6.55, compared to $3.53 in 2020. (Please see the attached Non-GAAP Financial Measures tables for a detailed reconciliation of reported results to adjusted measures.)
Full year 2021 sales were $3.2bn, an increase of 15% compared to the prior year. The sales increase was comprised of a $343m, or 12%, increase in core sales, a $71m, or 3%, benefit from favorable foreign exchange, and a slight benefit from an acquisition.
Full year 2021 operating profit was $502m, compared to $240m in 2020. Operating profit margin was 15.8%, compared to 8.7% last year, with the improvement driven primarily by higher volumes, as well as favorable mix, savings from 2021 cost actions, and substantially lower repositioning costs. Excluding Special Items, full year 2021 operating profit was $501m, compared to $300m last year. Excluding Special Items, operating profit margin was 15.8%, compared to 10.8% last year. (Source: BUSINESS WIRE)
24 Jan 22. Variohm Holdings Ltd (aka The Variohm Group), part of the LSE-listed discoverIE (LSE: DSCV), has further advanced its strategic product offering and manufacturing competency through the acquisition of the USA based precision switching and linear position sensor producer CPI™ (Control Products, Inc.). CPI’s specialist range of standard and ATEX/IECEX/SIL2 rated draw-wire position sensors and its waterproof switch and thermal switching technologies perfectly suit harsh duty application areas where the ISO9001 registered manufacturer has over seventy years’ experience in demanding control tasks in aerospace & military, construction, off-highway, agriculture, mining, subsea, oil & gas, and many other challenging fields. CPI develops, designs, and manufactures its comprehensive product range from its purpose-built facility in East Hanover, New Jersey and has the bold company strapline “Is your equipment tough enough for our sensors”.
CPI’s extensive range of linear position sensors were first developed over 15 years ago to meet the challenging demands for large hydraulic cylinders and accumulators used in the harsh environments faced by the construction equipment and materials handling industries. Rather than rod style in-cylinder position sensors which were prone to repeated failure, CPI took the basic principles of draw wire sensors in a patented configuration that replaced fragile potentiometers and encoders with either LVDT or a short rod magnetostrictive transducers as the core sensing technology. This long-life and non-contacting design offers numerous advantages including significant improvements in protection for heavy shock and vibration conditions and reliable operation in extreme temperature ranges from -40 to over 120 ⁰C. They can be located in-cylinder or externally mounted and find applications in many demanding positioning tasks beyond hydraulics. With absolute positioning and no need for homing on power-up, standard signal conditioning outputs include CAN Bus, analogue, and digital in single channel or redundant configurations. Models are available with full ATEX, IECEX and SIL2 approvals. CPI sensors are the only linear position sensors suitable for telescoping hydraulic cylinders up to 15 metres.
CPI’s thermal switches are used for demanding military and commercial temperature control applications and are available in three primary electromechanical design categories: snap disk, bimetal, and rod and tube. Each type offers a differing sensitivity and temperature profile that suit a very wide range of harsh environment applications. The snap disk ‘Snapstats’ range uses a bimetallic snap disc that provides shock and vibration immunity and a broad temperature differential over an operating temperature range from around -18 to 148 ⁰C. Available configurations include surface mount with or without probe, thread mount, clamp mount, hermetically sealed, and dual setpoint. The bimetal ‘Plugstat’ series are slow-make and -break devices which provide tight tolerance temperature sensing over a small range with a working range from approx. -18C to 345 ⁰C. They are applied extensively in aircraft ECS, plastic extruders, wind turbines, and various military vehicle systems. The rod and tube design suits set-point temperature ranges from around -18C to 955 ⁰C and are well proven in harsh environment applications such as aircraft engine overtemperature, refinery process control, and engine exhaust monitoring.
CPI manufactures an extensive range of waterproof switch products that as a minimum meet IP68 protection levels and for some tasks are completely long-term submersible. Characterised by the same high levels of durability and ruggedness of other CPI products, switch configurations include normally open, normally closed and SPDT with neoprene covers to MS39058 for military applications and Santoprene™ covers for industrial switching. Electromechanical design includes momentary, maintained contact, limit. ball types, plungers, rockers and more. Available as single components or combined in switch panels they offer long life endurance ratings as high as 5 m cycles and temperature ratings from -55 to 205 ⁰C.
All CPI products can be adapted as custom designed specials for applications outside standard product offerings, and UL approvals are widely available.
As Variohm Holdings continues to expand, this latest acquisition brings the Variohm Group to eight engineering companies and a total staff of more than 400 specialising in sensors, switches, motion control and systems – each with a high degree of autonomy but with complete access to the Group’s shared expertise and resources. CPI joins the German/Hungarian manufacturer Limitor GmbH (temperature control components), USA based Phoenix-America – (magnetic encoder and magnetic sensors), and the UK based companies Variohm EuroSensor (sensor and transducer supplier and manufacturer), Herga Technology (switching and sensing solutions), Ixthus Instrumentation (specialist measurement systems), Heason Technology (motion control components and custom engineered systems), and Positek Limited (specialised linear and rotary inductive displacement sensor technologies).
Graham Pattison, Variohm Holdings’ managing director, welcomes the CPI acquisition and the substantial opportunity it delivers for the Variohm Group’s manufacturing capability and potential sales growth. “This latest acquisition perfectly complements our vision and demonstrates discoverIE’s continued investment in The Variohm Group. By realising this increased synergy between our now eight members, we can deliver an increasingly more compelling offer to our valued customers”. “discoverIE and The Variohm Group is a really perfect fit for us,” notes Mac Stuhler, General Manager of CPI. “With their long and successful history of managing companies that produce the same kind of highly differentiated components that we manufacture, we are really looking forward to working within the Group and the new market opportunities offered”.
24 Jan 22. Denel PMP cannot pay January salaries. Staff at ammunition manufacturer Denel Pretoria Metal Pressings (PMP) will not be getting paid their January salaries due to no or limited activity taking place at the company from December.
In an infogram dated 21 January 2022, PMP CEO Phaladi Petje told staff that “due to no or limited working activities taking place as from the 7th of December, no cash could be generated to pay the outstanding salary for December 2021 and salaries for January 2022.”
Another infogram, dated 7 December, informed those working at PMP that all their November salaries had been paid, but funds to pay 50% of thirteenth cheques for qualifying employees would be delayed.
In last week’s message to employees, Petje noted the agreement regarding salary payments and related working conditions remained intact and “employees are expected to be at work on Monday 24 January to work on current projects to ensure the generation of cash to pay outstanding salaries and the 13th cheque and to ensure the future sustainability of PMP.”
He added that intensive effort is being made to sell available stock and to collect cash in the shortest possible time.
The broader Denel Group owes staff in excess of R650m in salaries and owes suppliers R900 m.
PMP has fared better than some other Denel divisions like Land Systems and Dynamics, whose staff have received no or partial pay for over a year.
Last year Denel announced the implementation of voluntary severance packages for staff in an effort to cut costs. It is facing pressure from trade unions and the labour court over salaries and benefits that have been unpaid since mid-2020. In February, Denel is due in court to face off against labour organisation Solidarity over unpaid salaries from the eighth month of 2021 to date.
Denel’s liquidity crisis has affected its ability to supply the South African National Defence Force (SANDF) with ammunition, spares and equipment.
Last year, Major General Setete Malakoane, in a letter to then South African Air Force (SAAF) acting chief Lieutenant General Mzayifani Buthelezi, expressed concern about Denel PMP’s ability to meet contractual commitments to the air force. Doubts were raised about Denel PMP continuing to supply “some aircraft cartridges and small to medium calibre ammunition” with a knock-on effect on SAAF combat readiness.
17 Jan 22. Investments Into Atomos Space Garners M$ For OTV Tech Development. Atomos Space has announced that an investment from Cantos Ventures has brought the company’s total capital raised in 2021 to $5m — Cantos, an experienced deep tech investor, joined this round with another undisclosed aerospace investor to realize the future of space mobility and logistics.
Atomos Space, based in Denver, Colorado, is building Orbital Transfer Vehicles (OTVs) to help satellite operators get to their place in space. Founded by Vanessa Clark and William Kowalski in late 2017, Atomos has won and executed over $2m in contracts with NASA, the U.S. Air Force, and U.S. Space Force, and currently has more than $200m in customer interest for in-space mobility.
While the barrier to entry for satellites to get to space has decreased significantly, many applications require orbits unavailable to satellites ridesharing with a larger payload. Enter Atomos’ OTVs. By capturing client satellites and transporting them to their target operational orbit, Atomos solves the last-mile problem in space at a fraction of the cost of dedicated launch.
Atomos’ advantage is their technical approach. Unlike similar systems under development, their OTVs reside in space and rendezvous with client satellites on-orbit, allowing more launch mass and volume for the payload and amortizing costs over many missions during the OTV’s lifetime. Atomos is focused on highly scalable, high-power electric and nuclear propulsion.
Since the 2021 investment, Atomos has doubled the size of their team and successfully completed ground testing of their autonomous rendezvous and docking technology and integrated propulsion system. Atomos expects to launch their first two spacecraft, Quark and Gluon, in 2023, and is excited to continue to expand the reach of humanity.
“Some customers need to procure multiple dedicated launches to deploy their constellation,” said Atomos co-founder and COO, William Kowalski. “Our services halve their launch costs.”
“Current propulsion technologies are evolutionary dead ends and can’t scale into the future space economy. Our propulsion moves us in a new direction,” said Vanessa Clark, CEO and co-founder of Atomos.
“We see a massive need for companies like Atomos. We think of them as orbital Uber,” said Cantos Ventures Founder & Managing Partner, Ian Rountree. Their money is on Atomos because “we believe in the Atomos team and see their service and underlying technologies – like nuclear propulsion – as vital to our future.” (Source: Satnews)
21 Jan 22. Curtiss-Wright Corporation (NYSE: CW) today announced that it has entered into an agreement to acquire the assets that comprise the Safran Aerosystems Arresting Company (SAA) for $240m in cash. SAA is a designer and manufacturer of aircraft emergency arresting systems with more than 5,000 systems worldwide and currently sells into more than 70 countries. SAA generated sales of approximately $70m in 2021 and is expected to be accretive to Curtiss-Wright’s adjusted diluted earnings per share in its first full year of ownership, excluding first year purchase accounting costs, and produce a strong free cash flow conversion rate well in excess of 100%. The acquired business will operate within Curtiss-Wright’s Naval & Power segment.
“The acquisition of the Safran arresting systems business increases the breadth of our global defense portfolio and firmly establishes Curtiss-Wright as a leading global supplier of fixed-wing aircraft recovery and arresting systems,” said Lynn M. Bamford, President and CEO of Curtiss-Wright Corporation. “SAA’s technologies are a logical extension to our existing helicopter landing and recovery systems. The combination provides an opportunity to leverage our long-standing relationships with leading defense customers supporting critical defense platforms, such as the F-35, and is expected to yield significant opportunities for revenue growth, including increased foreign military sales.”
“Building on our successful acquisition track record, SAA’s critical safety systems have a strong alignment to our strategic priorities as highlighted at our 2021 investor day.”
Through its predecessor companies, SAA created the first aircraft arresting system in 1960. Today, its diverse product portfolio includes energy absorbers, including the BAK-12 multiple disc mechanical brake system, retractable hook cable systems, net-stanchion systems and mobile systems to support aircraft carrier and fixed land-based arresting systems. In addition to being a world leader in land-based military arresting systems, SAA also supplies the mechanical braking module for the Advanced Arresting Gear (AAG) used on the U.S. Navy’s Ford-class aircraft carrier program. SAA’s aftermarket business, which is supported by the world’s largest installed base of arresting systems, provides cradle-to-grave support from civil engineering at installation, on-site qualification through post-installation maintenance, spares, and overhaul services.
SAA, which employs nearly 140 people, is based in Aston, Pa., and also maintains operations in Merpins, France. The acquisition is expected to close in the third quarter of 2022, subject to regulatory approval and other closing conditions.
TCI International, Inc., is a wholly-owned subsidiary of SPX Corporation. TCI provides turn-key solutions for spectrum management and monitoring, direction finding, geolocation and communications intelligence to civilian, government, military and intelligence agencies as well as antennas for communications and high-power radio broadcasting. TCI is headquartered in Fremont, California, USA. For more information, visit www.tcibr.com.