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06 May 22. Rheinmetall Boosts Profitability in the First Quarter: Operating Result and Margin Improved Further.

– Consolidated sales of €1,266m on a par with the previous year

– Consolidated operating result increases from €84m to €92m – growth of 10%

– Further improvement in operating margin – 7.3% after 6.7% in the same quarter of the previous year

– Continued high growth in orders

– Annual forecast for 2022 confirmed

Düsseldorf-based Rheinmetall AG further strengthened its profitability in the first quarter of 2022 while maintaining stable business performance. As a result, the technology group is on course to achieve its ambitious profitability target for fiscal 2022 and further boost income.

The Rheinmetall Group confirmed its annual forecast from March 2022 and is anticipating growth in sales in conjunction with a higher operating margin and, in turn, a further improved operating result in fiscal 2022.

Armin Papperger, Chief Executive Officer of Rheinmetall AG: “Rheinmetall is continuing its successful course. Along with consistently high sales, we even managed to further boost our performance in the first quarter. In the current security policy situation, we now consider ourselves well positioned to make valuable contributions to strengthening defence capabilities in numerous countries. Political leaders have sent clear signals. Now these have to be turned into concrete measures. We at Rheinmetall are ready for this. Responsibility for freedom and security – that is our mission through our security technologies business.”

Armin Papperger: “Thanks to our civil sector activities, we are making valuable contributions to the technological transformation in the mobility sector. With a growing share of sales attributable to alternative drive technologies, we are well positioned to drive forward the transformation of the industry and leverage new growth potential for us. Responsibility is important here, too – for the transformation toward climate-friendly mobility and new forms of energy supply, for example by means of hydrogen technology.”

Rheinmetall AG: sales level unchanged – operating margin increases to 7.3%

At €1,266m, consolidated sales in the first quarter of 2022 were on a par with the previous year (€1,268m).

The operating result increased significantly in the first three months of the year compared with the same period of the previous year. At €92m, the operating result exceeded the previous year’s figure of €84m by €8m. This improvement was achieved primarily through increased sales in the highest-margin division, Weapon and Ammunition. The operating margin of 7.3% exceeded the previous year’s level of 6.7%.

The consolidated operating result after taxes increased from €58m in the same quarter of the previous year to €61m in the first quarter of 2022, with earnings per share also increasing accordingly. Earnings per share from continuing operations improved in the first quarter of fiscal 2022 compared with the previous year from €1.05 to €1.08.

Vehicle Systems: orders worth almost €400m acquired in the first quarter

The Vehicle Systems division, which operates in the sector of military wheeled and tracked vehicles, generated sales of €400m in the first quarter of 2022, €9m (2.2%) down on the previous year’s figure. The order intake compared with the previous year’s figure increased by €220 m to €398 m. This increase can be attributed primarily to the order for the shipment of Boxer vehicles in the Mechanized Infantry Vehicle (MIV) project in Great Britain. The order backlog also increased significantly from €9.2bn (March 31, 2021) to €10.5bin (March 31, 2022). This equates to growth of €1.3bn (14.2%).

Despite a slight fall in sales, the operating result improved in the first three months of 2022 from €25m to €29m. This positive trend can be attributed to an improved product mix and strict cost management. The operating margin of 7.2% exceeded the previous year’s level of 6.2%.

Weapon and Ammunition: new order intake record

With its operations in the field of weapon systems and ammunition, the Weapon and Ammunition division generated sales of €258 m in the first quarter of 2022, up €37 m (17%) on the previous year’s level. This significant growth in sales can be attributed primarily to deliveries of ammunition and propellants to an international customer. The order intake in the first quarter of 2022 reached a record €1,145 m (previous year: €228m), with a high-volume ammunition order from Hungary making a significant contribution here. As at March 31, 2022, therefore, the order backlog increased by €1.0bn (37.4%) to €3.8bn (previous year: €2.8bn).

The operating result increased by €14m to €32m (previous year: €18m), a trend that can be attributed not only to the growth in sales but also higher income from investments. This resulted in a significant increase in the operating margin to 12.3% (previous year: 8.2%).

Electronic Solutions: order backlog increases to €2.6bn

The Electronic Solutions division, which develops and produces solutions in the field of defence electronics, generated sales of €168m and so remained on a par with the previous year (previous year: €167m). By contrast, the order intake increased significantly by €105 m (48%) to €323m. Major new orders in the first quarter of 2022 included battle helmets for the German armed forces and an air defence project for an international customer. The order backlog as at March 31, 2022, was €2.6bn (previous year: €2.3bn).

The operating result in the first quarter of 2022 declined by €7m to €4m (previous year: €11m), which can be attributed primarily to the acquisition of the activities of drone manufacturer EMT and to higher costs associated with the establishment of know-how in the field of cyber security. The operating margin, therefore, fell to 2.2% (previous year: 6.4%).

Sensors and Actuators: stable operating margin in a declining market environment

Sales in the Sensors and Actuators division, which develops components and control systems for reducing emissions and for thermal management on behalf of global automotive manufacturers, fell in the first quarter of 2022 to €347m (previous year: €372m). This €25m (around 7%) decrease can be attributed primarily to reduced customer call-offs as a result of the global decline in the market for light vehicles. In contrast, booked business for the first three months of fiscal 2022 increased by €366 m to a volume of €1,022m (previous year: €656m), with 15% of this attributable to business in the field of e-mobility and trucks.

The operating result fell in the first quarter of 2022 by €2m to €26m (previous year: €28m). However, at 7.5%, the operating margin remained at the previous year’s high level (previous year: 7.5%).

Materials and Trade: sales and operating result increased

The Materials and Trade division, which supplies plain bearings and structural components and is responsible for the global aftermarket business with automotive components, increased sales in the first quarter of 2022 to €190m, exceeding the previous year’s figure by €31m (around 19%). This growth in sales can be attributed primarily to strong aftermarket performance. In the first three months of fiscal 2022, the division achieved booked business of €210m. This represents an increase compared with the previous year of around 21% (previous year: €173m). More than 50% of booked business is attributable to projects in the field of e-mobility as well as truck and industry business.

In the first three months of 2022, the operating result of the Materials and Trade division increased from €14m to €16m. While the increased sales had a positive impact on earnings performance, material price increases had a negative impact on the result. The operating margin decreased slightly to 8.4% (previous year: 8.7%).

Outlook: strong sales growth with stable high margins

The annual forecast communicated to the capital market in March 2022 remains unchanged on the basis of currently available market forecasts. For fiscal 2022, the Rheinmetall Group is anticipating not only growth in sales but also an improved operating result along with a higher operating margin.

The Rheinmetall Group’s annual sales are expected to increase organically by between 15% and 20% against the previous year’s level in fiscal 2022 (previous year’s sales: €5,658m). This growth forecast assumes that the German government’s plans regarding possible procurements from the defence budget for 2022 and from the special German armed forces fund to be created will materialize as announced.

Based on this current sales forecast and taking into account holding costs, in fiscal 2022 Rheinmetall is expecting to see an improvement in the Group operating result and a Group operating margin of over 11% (previous year’s margin: 10.5%).

05 May 22. Italy’s Leonardo says well-placed for surge in military spending. Italian aerospace and defence group Leonardo confirmed its 2022 forecast on Thursday, saying it was well-positioned for increased military spending, after reporting a first-quarter rise in orders and core profit. Leonardo (LDOF.MI) Chief Executive Alessandro Profumo said in April that a potential increase in spending after Russia’s invasion of Ukraine could add to growth estimates.

Orders from January to March were up 10.8% year-on-year to 3.8bn euros ($4bn) and earnings before interest, tax and amortisation (EBITA) were up 39% to 132m euros. The volume of new orders has continued to increase significantly, as well as revenues and EBITA in all its main business areas, Leonardo said in a statement.

Revenues were driven by a strong performance of the state-controlled group’s helicopter business and by higher production volumes at its aircraft unit, it added.

“The first quarter of 2022 showed a good start to the year and results coherent with Leonardo’s growth path, which had already restarted in the previous financial year,” Profumo said.

He added that the group was “well-positioned” in both the European defence co-operation programmes and in the markets which have committed large increases in military budgets.

The conflict in Ukraine, which Russia calls a “special military operation”, has forced a rapid rethink in Europe over defence strategies and led a string of countries to promise large increases in military budgets. Leonardo is forecasting 15bn euros in new orders and an EBITA of 1.18-1.22bn euros at the end of this year. It is expecting free cash flow to be about 500 m euros at end-2022. ($1 = 0.9518 euros) (Source: Google/Reuters)

05 May 22. nLIGHT, Inc. Announces First Quarter 2022 Results. Revenues of $64.5m and gross margin of 25.1% for the first quarter of 2022. nLIGHT, Inc. (Nasdaq: LASR), a leading provider of high-power semiconductor and fiber lasers used in the industrial, microfabrication, and aerospace and defense markets, today reported financial results for the first quarter of 2022.

“We are pleased with the results we achieved in the first quarter. Driven by 77% year-over-year growth from Industrial customers outside of China and 14% year-over-year growth in Microfabrication, we delivered Q1 revenue of $64.5m, which was above the midpoint of our guidance range,” commented Scott Keeney, nLIGHT’s President and Chief Executive Officer. “Although Aerospace and Defense declined slightly year-over-year, we made excellent technical progress in Directed Energy and we increased our engagement with multiple new potential customers.”

Mr. Keeney continued, “First quarter gross margins and Adjusted EBITDA were above the high-end of our guidance range and we ended the quarter with approximately $136m of cash and no debt. Unexpected COVID-related lockdowns in Shanghai and other cities in China have created a more uncertain operating environment but we continue to see healthy demand trends from our customers.”

Revenues of $64.5m for the first quarter of 2022 were up 5.1% compared to $61.3m for the first quarter of 2021. Gross margin was 25.1% for the first quarter of 2022 compared to 28.8% for the first quarter of 2021. GAAP net loss for the first quarter of 2022 was $(8.6)m, or net loss of $(0.20) per diluted share, compared to net loss of $(6.1)m, or net loss of $(0.15) per diluted share, for the first quarter of 2021. Non-GAAP net loss for the first quarter of 2022 was $(1.6)m, or non-GAAP net loss of $(0.04) per diluted share, compared to non-GAAP net income of $2.6 m, or non-GAAP net income of $0.06 per diluted share, for the first quarter of 2021. Reconciliations of the non-GAAP metrics presented here to the most directly comparable GAAP metrics have been provided in the tables included at the end of this release.

Outlook

For the second quarter of 2022, nLIGHT expects revenues to be in the range of $59m to $67m, gross margin to be in the range of 21% to 25%, and Adjusted EBITDA to be in the range of $(2) m to $1m.

We have not reconciled our outlook for Adjusted EBITDA because unrealized and realized foreign exchange gains and losses cannot be reasonably calculated or predicted nor can the probable significance be determined at this time. Accordingly, a reconciliation is not available without unreasonable effort. (Source: BUSINESS WIRE)

05 May 22. HENSOLDT AG with strong start to the year in the first quarter of 2022.

Revenue grows by a significant 37 percent to EUR 286m
Order intake increases by a substantial 25 percent year-on-year to EUR 681 m
Adjusted EBITDA improves by 11 percent to EUR 17m
Adjusted EBITDA margin below prior-year level due to increased revenues with a lower share of added value
Outlook for the 2022 fiscal year confirmed for all key performance indicators

HENSOLDT AG (“HENSOLDT”) has started the new fiscal year with continued strong growth in orders intake, revenue and earnings. In the first quarter of 2022, the company again won important major orders, increasing its order intake year on year by 25 percent to EUR 681m (Q1 2021: EUR 546m). Thus, the order backlog grew to a new record level of EUR 5,509m (Q1 2021: EUR 3,770m). Revenue of EUR 286 m (Q1 2021: EUR 209m) significantly exceeded the prior-year figure by 37 percent. Adjusted EBITDA improved by 11 percent to EUR 17m (Q1 2021: EUR 15m). On the basis of the substantial growth and positive business performance in the first quarter, HENSOLDT is confirming its outlook for the 2022 fiscal year for all key performance indicators.

Thomas Müller, CEO of HENSOLDT AG, said: “Our successful start to the fiscal year proves once again that we are setting the right strategic priorities. Our high-tech portfolio makes us the right technology partner to tackle the security challenges of tomorrow. This is even more crucial as Europe currently faces an entirely new security situation. The war against Ukraine is not only a human tragedy but has led to a turning point in European and German security policy within a few days. The special fund initiated by the German government represents an important step towards quickly and comprehensively equipping the country’s armed forces to cope with the new reality posed by the security situation and to prepared them for the future. HENSOLDT is ready for this joint effort. As a leading defence technology company, we are aware of our special role.”

Axel Salzmann, CFO of HENSOLDT AG, said: “Robust and sustainable growth has always been a hallmark of HENSOLDT – in our business and in our corporate development. This is a key prerequisite when it comes to successfully confronting what is a dramatically changed security situation. Our strong order backlog will ensure long-term revenue transparency in the years ahead, thus creating a stable platform for HENSOLDT’s onward development. To reliably execute our orders and convert them into revenue, we are making selective investments in production and development. Although these growth investments are currently reflected in our earnings, they are still essential to ensuring the sustained future development of our business.”

Continued positive order development

Based on its leading technologies and solutions in sensor technology, optronics, cyber security and data analysis, HENSOLDT was again able to assert itself as a technology partner in important defence projects in the first quarter of 2022 and accordingly won a number of new orders. For example, HENSOLDT is supplying four TRS-4D radars for the German Navy’s F126 (formerly MKS180) multi-purpose frigates. The contract to supply the high-performance radars is worth EUR 168 m; the first F126 frigate is expected to be delivered in 2028. Additionally, a long-term service contract for the Eurofighter with an order intake of EUR 270m was booked in the first quarter. HENSOLDT’s total order intake in the first quarter amounted to EUR 681m, compared with EUR 546m in the same quarter last year.

Revenue, earnings and free cash flow development in line with expectations

HENSOLDT AG’s earnings in the first quarter were in line with the positive development of revenue: adjusted EBITDA rose by 11 percent to EUR 17m (Q1 2021: EUR 15m). As expected, the adjusted EBITDA margin of 5.8 percent (Q1 2021: 7.2 percent) did not match the prior-year level; the same applies to the adjusted pre-tax unlevered free cash flow of EUR -114m (Q1 2021: EUR -32m).

Outlook for 2022 confirmed

For the 2022 fiscal year, HENSOLDT expects business development to remain positive along with a growing order backlog. It is anticipated that revenue will increase by 15 percent to EUR 1.7bn and adjusted EBITDA from EUR 285m to EUR 300m. Net financial leverage is also likely to be reduced further. HENSOLDT is assuming a dividend amounting to 20 percent of adjusted net income.

05 May 22. French aerospace firm Latecoere buys Canada’s Avcorp. French aerospace firm Latecoere (LAEP.PA) has agreed to buy Avcorp (AVP.TO) for around 41m Canadian dollars ($32m) in cash, it said in a statement on Thursday. Latecoere, which said the deal reflects a 38% premium to Avcorp’s closing share price on Wednesday, expects to close in the third quarter of this year. Chief Executive Thierry Mootz said the acquisition should boost the group’s opportunities in North America’s defence sector. Latecoere’s stock was up around 2% in early trade. Avcorp is majority owned by Panta Holdings BV. (Source: Google/Reuters)

05 May 22. BAE sees opportunity from higher European defence budgets. Britain’s BAE Systems (BAES.L) said it saw opportunities in the medium term from increased defence spending in Europe and other markets as it reported first-quarter trading in line with expectations, with good operational performance maintained.

“We see opportunities to further enhance the medium-term outlook as our customers address the elevated threat environment,” Chief Executive Charles Woodburn said on Thursday.

BAE’s shares have performed strongly since Russia invaded Ukraine in February, and reached an all-time high of 782.4 pence on Wednesday.

The defence company said orders to date had been positive, particularly on long-term programmes, such as the F-35 Lightning combat aircraft, and it continued to expect a strong year of order intake.

It said many countries had announced or were making plans to increase defence budgets to counter elevated threats on multiple fronts, noting for example the step up in German spending following Russia’s invasion of Ukraine.

“We see other nations increasing or likely to increase their defence budgets to address the threat environment and for NATO countries to move to, and even beyond, their 2% of GDP commitments,” it said.

It said it was well placed through its position on Eurofighter Typhoon and shareholding in missiles company MBDA, and was pursuing “a number of significant opportunities” in the region.

It also said the spending outlook was positive in the United States, and there were further opportunities in Britain, Asia-Pacific and the Middle East. (Source: Reuters)

04 May 22. Mirion Technologies Announces First Quarter 2022 Financial Results and Updates Full Year Guidance.

Revenues for the first quarter decreased 1.8% to $163.2 m, compared to $166.2m in the same period in 2021. Adjusted revenues decreased by 4.3% compared to the first quarter of 2021.
Net loss was $19.0 m in the first quarter, an improvement from a net loss of $40.7m in the same period last year. Adjusted EBITDA was $34.9m for the quarter, a 12.5% decrease from $39.9m in the same period last year.
GAAP net loss per share for the first quarter was $0.10. Adjusted earnings per share for the same period was $0.10.
The company updated full year 2022 guidance and is now expecting organic adjusted revenue growth of 4% to 6% and adjusted EBITDA of $170m to $180m and adjusted EPS of $0.44-$0.49.

Mirion Technologies, Inc. (“Mirion,” “we” or the “company”) (NYSE: MIR), a global provider of radiation detection, measurement, analysis and monitoring solutions to the medical, nuclear, defense, and research end markets, today announced results for its fiscal quarter ended March 31, 2022.

“Our teams responded well to the myriad of operating challenges that our company faced in the first quarter of 2022. Difficult comparisons on the industrial side of our business compared to the first quarter of 2021, continuing supply chain hurdles and customer project delays brought on by the Ukraine conflict represented significant headwinds during the quarter,” stated Thomas Logan, Mirion’s Chief Executive Officer. “Despite these challenges, we continued to experience strong engagement and order inflows across our product portfolio. We remain committed to executing on our company strategy and are confident in our competitive positioning heading into the remainder of 2022 and beyond.”

“I believe that the Mirion team performed admirably as they managed through the variety of headwinds present across the company’s international operating profile,” added Larry Kingsley, Chairman of Mirion’s Board. “While challenging in the short-term, it is important to remember that this is an incredibly resilient business led by a team that has proven they can deliver in the face of a challenging operating environment. Our end markets are healthy and our team has the right strategy in place to deliver strong results for the rest of 2022.”

Updated 2022 Outlook

“Following the conclusion of our first quarter and analyzing the current global operating environment, we are updating our full year 2022 guidance,” continued Mr. Logan. “These updates reflect the removal of remaining Russian-related projects from our 2022 guidance, largely offset with new opportunities in the defense and nuclear power sectors. We don’t have the ability to project how the situation in Ukraine may affect our business in the future and felt it prudent to provide guidance that reflects current expectations.”

Mirion is now expecting the following results for the fiscal year and 12-month period ending December 31, 2022:

Organic adjusted revenue growth of 4% – 6%, versus prior expectations of 5% – 7%
Adjusted EBITDA of $170m – $180m, compared to prior guidance of $175 m – $185m
Adjusted EPS of $0.44 – $0.49, which is down from the previous range of $0.45 – $0.50
Adjusted free cash flow of $75m – $95m, compared to prior guidance of $90m – $110m

CIRS is expected to deliver approximately 2% incremental inorganic revenue growth and foreign exchange rates are now expected to result in an approximately negative 2.5% impact to reported adjusted revenue growth. The guidance for organic adjusted revenue growth excludes the impact of foreign exchange rates as well as mergers and acquisitions.

Other modelling and guidance assumptions include the following:

Euro to U.S. Dollar foreign exchange conversion rate of 1.10
Net interest expense of approximately $38m (approximately $34m of cash interest)
Approximately 181m shares of Class A common stock outstanding (excludes 8.6m shares of Class B common stock, 27.2m warrants, 18.8m founder shares, subject to vesting, 1.0m restricted stock units, 0.2m performance stock units and a further 24.7m shares reserved for future equity awards(subject to annual automatic increases))

(Source: BUSINESS WIRE)

04 May 22. Curtiss-Wright Corporation (NYSE: CW) reports financial results for the first quarter ended March 31, 2022.

First Quarter 2022 Highlights:

Reported sales of $559m, reflecting timing of defense revenues;
Reported diluted earnings per share (EPS) of $1.05;
Adjusted diluted EPS of $1.31;
New orders of $634m, up 12%, reflecting strong demand within our Aerospace & Defense (A&D) and Commercial markets; and
Share repurchases of approximately $12m.

“Curtiss-Wright delivered solid Adjusted diluted EPS of $1.31 in the first quarter, exceeding our expectations, as the benefits of our combined portfolio of businesses enabled us to partially mitigate the headwinds of continued global supply chain disruption and the delayed signing of the FY22 Defense budget,” said Lynn M. Bamford, President and CEO of Curtiss-Wright Corporation. “We are greatly encouraged by the double-digit order growth in the first quarter, which builds upon our already strong backlog and provides further confidence in our full-year outlook.”

“Looking ahead to the remainder of the year, we anticipate steady, sequential improvement in sales, operating margin, diluted EPS and free cash flow, with a greater percentage of our full-year sales weighted to the second half of the year due to the timing of revenue within our defense markets. Overall, we are maintaining our full-year 2022 guidance for total sales growth of 3% to 5% driven by growth in all of our A&D and Commercial markets, continued operating margin expansion, and double-digit Adjusted diluted EPS growth of 10% to 12%, as we continue to successfully execute on our Pivot to Growth strategy to drive long-term shareholder value.”

First Quarter 2022 Operating Results

Total Aerospace & Defense (A&D) market sales decreased 10%, while total Commercial market sales increased 5%;
In our A&D markets, strong double-digit growth in the commercial aerospace market was more than offset by reductions in our defense markets due to the timing of sales, ongoing supply chain headwinds and the delayed signing of the FY22 defense budget;
In our Commercial markets, we experienced solid demand in the general industrial market, as well as higher sales within the power & process markets, despite the wind down on the China Direct AP1000 program; and
Adjusted operating income of $71m decreased 20%, while Adjusted operating margin decreased 230 basis points to 12.7%, principally driven by unfavorable overhead absorption on lower revenues and mix in our Defense Electronics and Naval & Power segments. These decreases were partially offset by higher revenues and increased profitability in the Aerospace & Industrial segment, as well as the benefits of our ongoing company-wide operational excellence initiatives.

First Quarter 2022 Segment Performance

Aerospace & Industrial

Adjusted sales of $191m, up $13m, or 8%;
Higher commercial aerospace market revenue reflected strong demand for actuation and sensors products, as well as surface treatment services, primarily on narrowbody platforms;
Higher general industrial market revenue was principally driven by increased sales of industrial vehicle products, most notably serving off-highway platforms;
Aerospace defense market revenue growth reflected higher sales of actuation products and surface treatment services on the F-35 program, mainly offset by lower sales of sensors equipment on various programs; and
Adjusted operating income was $25m, up 34% from the prior year, while Adjusted operating margin increased 260 basis points to 13.0%, reflecting strong absorption on higher sales and the benefits of our ongoing operational excellence and prior year restructuring initiatives.

Defense Electronics

Adjusted sales of $143m, down $39m, or 22%, principally reflected the timing of sales within our aerospace and ground defense markets as certain revenues shifted out of the first quarter of 2022 due to ongoing supply chain headwinds and the delayed signing of the FY22 defense budget;
Naval defense market revenue declines primarily reflected the timing of revenues on the Virginia-class submarine program and various surface ships; and
Adjusted operating income was $23m, down 39% from the prior year, while adjusted operating margin decreased 460 basis points to 16.3%, primarily reflecting reduced absorption and unfavorable mix on lower defense sales, which more than offset the benefits of our ongoing operational excellence initiatives.

Naval & Power

Adjusted sales of $225m, down $5m, or 2%;
Naval defense market revenue declines primarily reflected lower revenues on the CVN-80 aircraft carrier and Virginia-class submarine programs, partially offset by higher revenues on the CVN-81 aircraft carrier and Columbia-class submarine programs;
Higher power & process market sales reflected strong growth in nuclear aftermarket revenues supporting the maintenance of existing operating reactors and strong industrial valve demand in the process market; Those increases were mainly offset by the timing of production on the China Direct AP1000 program; and
Adjusted operating income was $33m, down 20% from the prior year, while adjusted operating margin decreased 320 basis points to 14.5%, driven by unfavorable absorption on lower naval defense market revenues and unfavorable mix in the power & process market.

Free Cash Flow

Reported free cash flow of ($135)m decreased approximately $100 m, primarily due to higher working capital and the Westinghouse legal settlement payment;
Adjusted free cash flow of ($112)m decreased $77m; and
Capital expenditures increased $2m compared with the prior year, primarily due to higher capital investments within the Aerospace & Industrial segment.

New Orders and Backlog

New orders of $634m increased 12% and generated an overall book-to-bill that exceeded 1.1x, principally driven by solid demand for naval defense and commercial aerospace products within our A&D markets, and for industrial vehicle products within our Commercial markets; and
Backlog of $2.3 bn, up 3% from December 31, 2021, reflects higher demand in both our A&D and commercial markets.

Share Repurchase and Dividends

During the first quarter, the Company repurchased 87,303 shares of its common stock for approximately $12m; and
The Company also declared a quarterly dividend of $0.18 a share, unchanged from the previous quarter.

Other Items – Westinghouse Legal Settlement

In February 2022, the Company and Westinghouse reached an agreement to settle all open claims and counterclaims under the AP1000 U.S. and China contracts;
The Company’s 2021 and 2022 non-GAAP results have been adjusted for this legal matter;
The Company recorded full-year charges of approximately $13m in 2021 related to this matter; and
The terms of the settlement require a $25m cash payment, with $15m paid in the first quarter of 2022 and $10m to be paid in the first quarter of 2023.

04 May 22. Airbus reports First Quarter (Q1) 2022 results.

Solid Q1 results in an evolving and complex geopolitical and economic environment
142(1) commercial aircraft delivered in Q1 2022
A320 Family: Monthly production rates to increase to 75 in 2025 to meet customer demand
Revenues €12.0bn; EBIT Adjusted €1.3bn
EBIT (reported) € 1.4bn; EPS (reported) €1.55
Free cash flow before M&A and customer financing €0.2bn
Guidance unchanged; more challenging risk profile for the remainder of 2022

Airbus SE (stock exchange symbol: AIR) reported consolidated financial results for its First Quarter (Q1) ended 31 March 2022.

“These Q1 results reflect a solid performance across our commercial aircraft, helicopter and defence businesses. Our 2022 guidance is unchanged, even though the risk profile for the rest of the year has become more challenging due to the complex geopolitical and economic environment,” said Guillaume Faury, Airbus Chief Executive Officer. “Looking beyond 2022, we see continuing strong growth in commercial aircraft demand driven by the A320 Family. As a result we are now working with our industry partners to increase A320 Family production rates further to 75 aircraft a month in 2025. This ramp-up will benefit the aerospace industry’s global value chain.”

Gross commercial aircraft orders increased to 253 (Q1 2021: 39 aircraft) with net orders of 83 aircraft after cancellations (Q1 2021: -61 aircraft). The order backlog amounted to 7,023 commercial aircraft on 31 March 2022. Airbus Helicopters booked 56 net orders (Q1 2021: 40 units) and was awarded a contract for the Tiger MkIII attack helicopter upgrade programme. Airbus Defence and Space’s order intake by value increased to €3.2bn (Q1 2021: €2.0bn), corresponding to a book-to-bill ratio of around 1.3. Included is the Eurodrone global contract signed in February 2022, covering the development and manufacturing of 20 systems and 5 years of initial in-service support for Germany, France, Italy and Spain.

Consolidated revenues increased 15 percent to €12.0bn (Q1 2021: €10.5bn), mainly reflecting the higher number of commercial aircraft deliveries and a favourable mix. A total of 142(1) commercial aircraft were delivered (Q1 2021: 125 aircraft), comprising 11 A220s, 109 A320 Family, 6 A330s and 16 A350s. The financial results reflect 140 commercial aircraft deliveries after the reduction of two aircraft previously recorded as sold in December 2021 for which a transfer was not possible due to international sanctions in place. Revenues generated by Airbus’ commercial aircraft activities increased 17 percent, mainly reflecting the higher deliveries and favourable mix. Airbus Helicopters delivered 39 units (Q1 2021: 39 units), with revenues rising 7 percent mainly reflecting growth in services and a favourable mix in programmes. Revenues at Airbus Defence and Space increased 16 percent, mainly driven by the Military Aircraft business and following the Eurodrone contract signature. One A400M transport aircraft was delivered in Q1 2022.

Consolidated EBIT Adjusted – an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – increased to €1,263m (Q1 2021: €694m). It includes a non-recurring positive element of € 0.4bn related to the remeasurement of past service cost in the retirement obligations and also reflects efforts on competitiveness and the impact from cost containment. An amount of € -0.2bn was recorded in Q1 2022 resulting from the impact of international sanctions against Russia.

EBIT Adjusted related to Airbus’ commercial aircraft activities increased to € 1,065 m (Q1 2021: €533m), mainly reflecting higher deliveries as well as the efforts on competitiveness and the effect from cost containment. It also includes the non-recurring impact from retirement obligations, partly offset by the impact of international sanctions against Russia.

Commercial aircraft production for the A320 Family is progressing towards a monthly rate of 65 aircraft by summer 2023, in a complex environment. Following an analysis of global customer demand as well as an assessment of the industrial ecosystem’s readiness, the Company is now working with its suppliers and partners to enable monthly production rates of 75 in 2025. This production increase will benefit the entire global industrial value chain. Airbus will meet the higher production rates by increasing capacity at its existing industrial sites and growing the industrial footprint in Mobile, US, while investing to ensure that all commercial aircraft assembly sites are A321-capable.

On the A321XLR, the Company continues to work towards a first flight by the end of Q2 2022. Initially planned for the end of 2023, the entry-into-service is now expected to take place in early 2024 in order to meet certification requirements.

Airbus Helicopters’ EBIT Adjusted increased to €90m (Q1 2021: €62m), partly driven by growth in services and favourable mix in programmes. It also reflects non-recurring elements, including the impact from retirement obligations.

EBIT Adjusted at Airbus Defence and Space was €106m (Q1 2021: €59m), mainly driven by Military Aircraft and following the Eurodrone contract signature. It also reflects the non-recurring impact from retirement obligations, partly offset by the consequences for the space business from the international sanctions against Russia.

On the A400M programme, development activities continue toward achieving the revised capability roadmap. Retrofit activities are progressing in close alignment with the customer. Risks remain on the qualification of technical capabilities and associated costs, on aircraft operational reliability in particular with regard to powerplant, on cost reductions and on securing export orders in time as per the revised baseline.

Consolidated self-financed R&D expenses totalled €586m (Q1 2021: €620m).

Consolidated EBIT (reported) amounted to €1,429m (Q1 2021: €462m), including net Adjustments of € +166m.

These Adjustments comprised:

€ +190m related to the dollar pre-delivery payment mismatch and balance sheet revaluation;
€ -11m related to the A380 programme;
€ -13m of other costs including compliance.

The financial result was € 166m (Q1 2021: € 59m). It mainly reflects the positive net impact from the revaluation of certain equity investments, partially offset by the revaluation of financial instruments as well as the net interest result of €-76m. Consolidated net income(2) was € 1,219m (Q1 2021: €362m) with consolidated reported earnings per share of €1.55 (Q1 2021: €0.46).

Consolidated free cash flow before M&A and customer financing was €213m (Q1 2021: €1,202 m), reflecting the level of deliveries, competitiveness and the impact of cost containment, partly offset by an increase in working capital mainly driven by inventory. Consolidated free cash flow was €161m (Q1 2021: €1,164m).

On 31 March 2022, the gross cash position stood at €22.8bn (year-end 2021: €22.7bn) with a consolidated net cash position(3) of €7.7bn (year-end 2021: €7.7bn). The Company’s liquidity position remains strong, standing at €28.8bn at the end of March 2022.

Outlook

The guidance issued in February 2022 remains unchanged.

As the basis for its 2022 guidance, the Company assumes no further disruptions to the world economy, air traffic, the Company’s internal operations, and its ability to deliver products and services.

The Company’s 2022 guidance is before M&A.

On that basis, the Company targets to achieve in 2022 around:

720 commercial aircraft deliveries;
EBIT Adjusted of €5.5bn;
Free Cash Flow before M&A and Customer Financing of € 3.5bn.

The US Department of State has granted Airbus a nine-month extension of the duration of the Consent Agreement settling civil violations of the International Traffic in Arms Regulations (ITAR). Airbus initiated this request for an extension from the US Department of State because it had to redirect internal Export Control resources to the tracking and implementation of recent export control restrictions and international sanctions against Russia and Belarus. The Company does not expect the Consent Agreement extension to have an impact on the other agreements approved on 31 January 2020 with the UK, French and US authorities.

05 May 22. Chemical light maker Cyalume Technologies to get new owner. US-based protective equipment provider Cadre Holdings plans to expand its defence portfolio by acquiring chemical lighting manufacturer Cyalume Technologies, Cadre announced on 3 May.

Cyalume’s light sticks can be used in various combat and training scenarios, such as marking helicopter landing zones, identifying friendly personnel and vehicles, and marking landmines for removal. Cadre has agreed to pay USD35 m for Cyalume, which has been owned by US private equity firm Arsenal Capital Partners since 2017. The transaction is expected to close in May. Cyalume, whose customers include US and allied armed forces, estimates it will generate about USD25 m in revenue in 2022. Its management team plans to remain with the West Springfield, Massachusetts-based business after the acquisition closes. While Cadre mainly serves first responders, it has several military products of its own, including explosive ordnance disposal equipment provided through its Med-Eng subsidiary, and holsters sold under the Safariland brand. Based in Jacksonville, Florida, Cadre became a publicly held company in November 2021, and generated net sales of USD427.3m and net income of USD12.7m in 2021. (Source: Janes)

03 May 22. Leidos Holdings, Inc. Reports First Quarter Fiscal Year 2022 Results.

Revenues of $3.5bn, up 5% year-over-year
Net Income of $177m; Adjusted EBITDA of $358m
Diluted Earnings per Share of $1.25, or $1.58 on a non-GAAP basis
Cash Flows from Operations of $93m; Free Cash Flow of $65m
Net Bookings of $5.4bn (book-to-bill ratio of 1.6) drive record backlog of $36.3bn

Leidos Holdings, Inc. (NYSE: LDOS), a FORTUNE 500® science and technology leader, today reported financial results for the first quarter of fiscal year 2022.

Roger Krone, Leidos Chairman and Chief Executive Officer, commented, “Our first quarter marked a strong start to 2022, with record levels of revenues and backlog stemming from our leadership position in the government technology market. We continued to build our reputation and track record of performance in digital technology, cyber, and innovative systems across our diversified, resilient business portfolio. Our strong first quarter results and the improving federal budget picture increase our confidence in delivering on our full-year financial commitments.”

Summary Operating Results

Revenues for the quarter were $3.49 bn, up 5% in total and up 4% organically compared to the prior year quarter. Revenues grew across all reportable segments; the largest contributors were the start-up of the Navy Next Generation Enterprise Network Recompete (NGEN-R) Service Management, Integration and Transport (SMIT) contract and the increased deployments on the Defense Healthcare Management System Modernization (DHMSM) program.

Net income was $177m and diluted EPS was $1.25. Net income and diluted EPS were down 14% and 12% year-over-year, respectively, primarily as a result of the $26m net benefit from an adjustment to legal reserves related to the Mission Support Alliance (MSA) joint venture recorded in the first quarter of fiscal year 2021. The weighted average diluted share count for the quarter was 140m compared to 144m in the prior year quarter. Net income margin decreased from 6.2% to 5.1% year-over-year.

Adjusted EBITDA was $358m for the first quarter, down 8% year-over-year. Adjusted EBITDA margin decreased from 11.7% to 10.2% over the same period, primarily as a result of the MSA adjustment and a return to more normative indirect spending levels. Non-GAAP net income was $223 m for the first quarter, which was down 10% year-over-year, and non-GAAP diluted EPS for the quarter was $1.58, which was down 9% compared to the first quarter of fiscal year 2021.

Cash Flow Summary

In the first quarter of fiscal year 2022, Leidos generated $93m of net cash provided by operating activities for an operating cash flow conversion ratio of 53%. After adjusting for payments for property, equipment and software, quarterly free cash flow was $65m for a free cash flow conversion ratio of 29%.

Leidos used $21m in investing activities and $519m in financing activities, which included a $500m accelerated share repurchase agreement and $51m in quarterly cash dividends. As of April 1, 2022, Leidos had $297m in cash and cash equivalents and $5.1bn of debt.

On April 29, 2022, the Leidos Board of Directors declared that Leidos will pay a cash dividend of $0.36 per share on June 30, 2022 to stockholders of record at the close of business on June 15, 2022.

New Business Awards

Net bookings totaled $5.4bn in the quarter, representing a book-to-bill ratio of 1.6. As a result, backlog at the end of the quarter was a record $36.3bn, of which $7.1bn was funded. Included in the quarterly bookings were several particularly important awards:

Advanced Enterprise Global Information Technology Solutions (AEGIS). Leidos was awarded a prime contract by the National Aeronautics and Space Administration (NASA) to provide telecommunications, cloud and data center services across all of the agency’s centers and facilities. The single award contract has a total estimated value of $2.5bn and a ten-year period of performance, if all options and award terms are exercised.
National Airspace Systems (NAS) Integration Support Contract (NISC). Leidos will continue its support of air traffic control modernization efforts to the Federal Aviation Administration (FAA) under a new $1.7bn, 10-year, single-award indefinite-delivery/indefinite-quantity (ID/IQ) contract. Leidos will perform engineering and technical services to integrate new systems, components and equipment into the National Airspace System, including strategic and transition planning, test-and-evaluation, training, automation, flight procedures, security and safety, business intelligence, data analytics and unmanned aircraft systems.
Veterans Benefits Administration (VBA) Medical Disability Examinations (MDE) Services. Leidos was awarded the recompete of its contract to support pre-discharge examinations in the U.S. and a new contract to provide disability examinations in 39 locations outside the U.S. Each multiple award ID/IQ contract has a six-month base period with six one-year options; together, they total approximately $1.7bn in contract value if all options are exercised. Leidos will leverage the infrastructure and capability built over more than two decades to perform medical disability examinations through multiple delivery models to better serve veterans.
U.S. Navy Surface Combatant Ship Design Engineering Services. The U.S. Navy awarded Gibbs & Cox, a wholly owned subsidiary of Leidos, a contract to provide Surface Combatant Ship Design Engineering Services in support of Future Surface Combatant Programs. Under the contract, Gibbs & Cox will provide services supporting future surface combatants design, with initial focus on the Program Executive Office Ship’s DDG(X) Program Office (PMS 460) industry engagement, DDG(X) design development, and technology integration efforts. The award has a potential value of $319m with a period of performance through 2027, if all options are exercised.
U.S. Army Gunnery Training Systems Modernization. Leidos was awarded a prime contract by the U.S. Army’s Program Executive Office for Simulation, Training, and Instrumentation to modernize the service’s gunnery training simulation systems. Under the contract, Leidos will perform technology refresh and concurrency updates to the simulators. The single-award ID/IQ contract has a total estimated value of $104m and a period of performance of five years. (Source: PR Newswire)

03 May 22. AMETEK Announces First Quarter Results. AMETEK, Inc. (NYSE: AME) today announced its financial results for the first quarter ended March 31, 2022. AMETEK’s first quarter 2022 sales were $1.46bn, a 20% increase compared to the first quarter of 2021. Operating income increased 20% to $353.2m and operating margins were 24.2% in the quarter with strong core margin expansion.

On a GAAP basis, first quarter earnings per diluted share were $1.17. Adjusted earnings in the quarter were $1.33 per diluted share, up 24% from the first quarter of 2021. Adjusted earnings adds back non-cash, after-tax, acquisition-related intangible amortization of $0.16 per diluted share. A reconciliation of reported GAAP results to adjusted results is included in the financial tables accompanying this release and on the AMETEK website.

“AMETEK had a strong start to the year. Our businesses navigated a difficult operating environment, delivering results exceeding our expectations,” said David A. Zapico, AMETEK Chairman and Chief Executive Officer. “Our focus on providing customers with differentiated technology solutions drove double digit organic sales growth while AMETEK’s operational flexibility allowed us to generate excellent margin expansion and earnings growth. Additionally, end demand remains strong with orders up 22% in the quarter resulting in a record $3.0 bn backlog.”

Electronic Instruments Group (EIG)

EIG sales in the first quarter were $987.8 m, up 25% from the first quarter of 2021. EIG’s operating income in the quarter increased 18% to $244.8 m and operating income margins were 24.8%.

“EIG delivered fantastic results in the quarter,” noted Mr. Zapico. “Strong organic sales growth and contributions from recent acquisitions drove an impressive 25% increase in sales while AMETEK’s operational excellence initiatives drove excellent core margin expansion.”

Electromechanical Group (EMG)

First quarter EMG sales were $470.8m, up 11% from the same quarter in 2021. EMG’s first quarter operating income was a record $128.2m, up 22% versus the prior year, while operating income margins were a record 27.2%.

“EMG’s first quarter results were outstanding with broad based sales growth and exceptional operating performance resulting in robust margin expansion,” added Mr. Zapico.

2022 Outlook

“AMETEK’s performance in the first quarter reflects the strength of the AMETEK Growth Model. We remain well positioned to manage successfully in an uncertain environment including supply chain constraints, increased inflation, and the impacts of COVID-19 lockdowns in China. Despite these headwinds we continue to deliver strong and sustainable performance for all stakeholders,” continued Mr. Zapico.

“For 2022, we expect overall sales to be up high-single digits compared to 2021. Adjusted diluted earnings per share are now expected to be in the range of $5.34 to $5.44, an increase of 10% to 12% over the comparable basis for 2021. This is an increase from our previous guidance range of $5.30 to $5.42 per diluted share,” he added.

“We expect overall sales in the second quarter to be up low to mid-single digits versus the prior year. Adjusted earnings per diluted share are anticipated to be in the range of $1.27 to $1.30, up 10% to 13% compared to the second quarter of 2021,” concluded Mr. Zapico. (Source: PR Newswire)

03 May 22. Kopin Reports Good Results for First Quarter 2022.

Q1 2022 Total Revenues of $11.6m – Flat vs Q1 last year, despite supply chain challenges
Customer-funded Research & Development Revenues Increase 38% Year over Year
Micro OLED and LED Display Development Programs on Track
$4.7m Gain on Equity Investment

Kopin® Corporation (Nasdaq: KOPN), a leading provider of high-resolution micro-displays and sub-systems for defense, enterprise and consumer augmented reality (AR), virtual reality (VR) and mixed reality (MR) systems, today provided an update on its business initiatives and reported financial results for the first quarter ended March 26, 2022.

“We are off to a good start for fiscal year 2022. While revenues in the first quarter of 2022 were essentially flat with the first quarter of last year as we experienced some production disruption in the last few weeks of the quarter owing to certain materials shortages caused by the global supply chain issues, demand for our products remains strong,” said Dr. John C.C. Fan, Kopin’s CEO. “Although we expect intermittent supply chain disruptions for some of our materials, based on discussions with our vendors and other actions we have taken we continue to expect to meet our financial growth goals for the year.”

“Our customer-funded R&D business continues to be strong with 38% year over year revenue growth. This comes on top of a very strong first quarter of 2021 in which we saw an 82% year over year revenue growth. This growth is being primarily driven by customer-funded development programs for both organic light emitting diode (OLED) and inorganic light emitting diode (LED) microdisplays. This strong customer-funded development pipeline bodes well for our future growth as we expect most of these development programs will convert to production programs following their development phases. We believe our ability to design and manufacture our traditional advanced liquid crystal displays, new dual stack OLED displays and eventually micro LED displays, together with customized optics and ruggedized sub-system packaging, is a critical reason our customers seek us out. Just recently we announced new orders for our Lighting® 720p OLED displays and 2K x 2K silicon backplane wafers for micro OLED displays.”

“Despite the supply chain issues we experienced in the first quarter, we expect 2022 to be a year of good growth. The backlog for both our defense production programs and our enterprise business is strong for the remainder of the year, we expect to announce new design wins for our 3D AOI (automated optical inspection) spatial light modulators, and our micro OLED and micro LED display activities remain on track. We expect to continue to make strong progress in executing our strategy and believe that both AR and VR markets provide great growth opportunities, which Kopin is well positioned to capitalize on,” concluded Dr. Fan.

First Quarter Financial Results

Total revenues for the first quarter ended March 26, 2022 were $11.6m, compared with $11.7 m for the first quarter ended March 27, 2021, essentially flat year over year.

Cost of Products Revenues for the first quarter ended March 26, 2022 was $7.8m, or 120% of net product revenues, compared with $6.4m, or 85% of net product revenues, for the first quarter ended March 27, 2021. The increase in cost of product revenues as a percent of product revenues for the first quarter of 2022 as compared to the first quarter of 2021 was due to lower production efficiencies resulting from a lower volume of units produced, approximately $450,000 of warranty costs reserves, and approximately $300,000 of additional reserve for excess materials. The lower production volumes resulted in less absorption of overhead costs. The additional warranty costs reserve relates to units shipped before the new production processes the Company implemented in 2021. The additional reserve for excess materials is primarily the result of the Company procuring materials for contingency purposes as a result of the supply chain situation. The current supply chain situation is dynamic and we are working closely with our suppliers and customers to manage this issue.

Research and Development (R&D) expenses for the first quarter of 2022 were $5.4m compared to $3.6m for the first quarter of 2021, a 52% increase year over year. The increase was driven by the increase in customer-funded research and development revenues.

Selling, General and Administrative (SG&A) expenses were $4.5m for the first quarter of 2022, compared to $5.9 m for the first quarter of 2021. The decrease was primarily due to stock-based compensation of $442,000 included in SG&A expenses in the first quarter of 2022 as compared to $2.4 m of stock-based compensation included in SG&A expenses for the first quarter of 2021.

Included in Other Income is a gain of $4.7m in the first quarter of 2022 resulting from the mark to market of an equity investment. As a reminder, part of Kopin’s strategy to monetize our deep intellectual property (IP) portfolio is to receive an equity interest in certain licensee companies when we license our IP to them.

Net Loss Attributable to Kopin Corporation for the first quarter of 2022 was $1.4m, or $0.02 per share, compared with Net Loss Attributable to Kopin Corporation of $4.1m, or $0.05 per share, for the first quarter of 2021.

Net Cash used In Operating Activities for the first quarter ended March 26, 2022, was approximately $2.3m. Kopin’s Cash and Equivalents and Marketable Securities were approximately $26.3m at March 26, 2022 as compared to $29.3 m at December 25, 2021.

We have no long-term debt.

All amounts above are estimates and readers should refer to our Form 10-Q for the quarter ended March 26, 2022, for final disposition as well as important risk factors. (Source: BUSINESS WIRE)

03 May 22. Thales completes the acquisition of RUAG S&T, becoming a European leader in the field of training and simulation.

The merging of Thales and RUAG S&T will provide advanced solutions and services for combat readiness of land forces.
As a result of the acquisition, Thales becomes one of the main European players in the field.
This combination brings together more than 1,400 employees based in six countries (France, Switzerland, Germany, the United Kingdom, Australia and the UAE).
As part of the Group’s digital strategy, this integration will help accelerate the move towards developing more environmentally efficient and digital training solutions for the military.

Thales (Euronext Paris: HO) completes the acquisition of RUAG Simulation & Training, including its 500 employees and with sales worth approximately €90m in 2021.

The consolidation will complement Thales’s footprint in the land market in particular, meanwhile sustaining its field-proven expertise in helicopters and military aircraft solutions. This acquisition will provide an opportunity to reinforce local footprint in priority geographies (France, Switzerland, Germany, and United Kingdom), while increasing presence in UAE and Australia.

The synergies of Thales and RUAG S&T will create new opportunities to accelerate the deployment of next generation hybrid solutions, combining world-class live and synthetic expertise. The initiative, which is driven by the digitalization of land forces, is fully in line with the global evolution toward more environmentally friendly solutions, in line with Thales ESG commitments.

With the formal acquisition process completed, the next step will be to initiate the integration of the two companies to create a more efficient business, while ensuring the continuity of activities and operations for the benefit of the armed forces.

Thales, Training & Simulation

Thales’ Training & Simulation business designs and delivers training capabilities for armed forces, civil and government helicopter operators worldwide. It also acts as an industrial partner for the co-development of large-scale systems for defense programs. With 900 employees, the business has industrial sites in France, the United Kingdom, Germany and Australia, as well as joint ventures and training sites in the USA, Middle East and Europe.

RUAG Simulation & Training

Over the year, the company has demonstrated very strong technological competences and an outstanding ability to serve its customer with excellence. RUAG S&T thus benefits from a solid market reputation, and its portfolio includes significant contracts among which several ones with the Swiss Army. With 500 employees, the company started in Switzerland and does now operate in Switzerland, France, Germany and the United Arab Emirates.

02 May 22. Kaman Reports First Quarter 2022 Results.

First Quarter 2022 Highlights:

Results were in line with our expectations and we are maintaining company outlook for 2022
Delivered year over year growth in Engineered Products
Net sales: $158m
Gross Margin: 32.0%, a 120 basis point improvement over first quarter 2021
Net earnings: $4.0m
Adjusted EBITDA*: $12.2m; Adjusted EBITDA margin*: 7.7%
Diluted earnings per share: $0.14 per share, $0.15 per share adjusted*

Kaman Corp. (NYSE:KAMN) today reported financial results for the first fiscal quarter ended April 1, 2022.

“”Overall company performance was in line with our expectations. In the first quarter, our Engineered Products segment benefited from robust sales into medical and industrial end markets and improving aerospace demand. This segment is poised for continued growth which is supported by strong order rates for these products leading to a backlog increase of 23 percent since the beginning of the year. Additionally, sales to Boeing and Airbus improved, making it the third quarter in a row of increased sales,” said Ian K. Walsh, Chairman, President and Chief Executive Officer.

“In Precision Products, lower sales and margin were realized for our K-MAX® and JPF programs. During the quarter, we continued to support the transformation of this segment, increasing research and development investment in our air vehicles program as we progress on the implementation of autonomous technology in our growing family of unmanned aerial systems. We are working closely with the U.S. government and are pleased with the support of $7m in new funding which will go towards the advancement of our autonomous logistics system. We are on target for a full scale model demonstration of our new KARGO UAV unmanned aerial system planned for the second half of the year.”

“In our Structures segment, quarterly results were lower than the same period last year, however sales and margin are expected to improve over the course of the year. We continue to take meaningful steps to adjust our cost structure and capacity, while working to secure more complex structural programs aligned with our capabilities. In fact, during the quarter, we expanded our medical imaging program through a new partnership with Mirion Technologies, a major medical equipment manufacturer and were recently awarded a prototype contract for sophisticated composite panels for a leading satellite communication company.”

“In April, we announced a new $50m share repurchase program which supports our continued commitment to delivering value to our shareholders with our first priority of this program to limit future dilution from the issuance of shares under our employee stock plan. Our strong free cash flow generation allows us make strategic investments in our business while having the optionality for share repurchases and the ability to continue our dividend. Kaman is in a great position to execute on our strategy to provide meaningful shareholder returns,” said Walsh.

Outlook

“Year to date, we have seen robust demand for Kaman’s products with meaningful growth in our seals, springs and contacts products in our Engineered Products segment. This strength in order activity gives us confidence in the improvement we expect to see in our end markets in 2022. In our Precision Products segment, we are managing our programs with a focus on securing additional Joint Programmable Fuze DCS orders. In our Structures segment, we will continue to apply lean initiatives and reduce costs while seeking to expand into more profitable, complex structures programs. Over the course of the year, we expect to see improved performance for the company from product mix changes, timing of sales and a continued focus on operations excellence. As such, we are maintaining our full year guidance for 2022.”

“Kaman is well placed with a highly capable leadership team and is committed to organic growth through new product innovation. In addition to investments in our products, we remain focused on adding new, more profitable businesses by leveraging our strong balance sheet. As we look for both organic and inorganic growth opportunities, we will be disciplined in our approach to capital allocation, making the right investments for our company,” Walsh said.

KAMAN BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT

Kaman manages its portfolio through three segments: (1) Engineered Products; (2) Precision Products; and (3) Structures.

Engineered Products – Our Engineered Products segment serves the aerospace and defense, industrial and medical markets providing sophisticated, proprietary aircraft bearings and components; super precision, miniature ball bearings; and proprietary spring energized seals, springs and contacts.

Three months ended April 1, 2022 versus three months ended December 31, 2021 – Operating income decreased $2.5m, Adjusted EBITDA decreased $2.8m and margin decreased 310 basis points versus the fourth quarter of 2021. Compared to the prior period, results declined primarily due to lower volumes of bearings sold into military and commercial markets. This was partially offset by increased sales volumes of seals, springs and contacts for industrial and medical applications and higher sales volumes of aftermarket parts.

Three months ended April 1, 2022 versus three months ended April 2, 2021 – Operating income increased $6.1m, Adjusted EBITDA increased $5.8m and margin increased 520 basis points versus the first quarter of 2021. Results improved compared to the same period last year driven by increased volumes and margins of seals, springs and contacts for aerospace and medical applications and higher sales of commercial bearings and aftermarket products.

Precision Products – Our Precision Products segment serves the aerospace and defense markets providing precision safe and arming solutions for missile and bomb systems for the U.S. and allied militaries; subcontract helicopter work; restoration, modification and support of our SH-2G Super Seasprite maritime helicopters; manufacture and support of our heavy lift K-MAX® manned helicopter, the K-MAX TITAN unmanned aerial system and the KARGO UAV unmanned aerial system, a purpose built autonomous medium lift logistics vehicle.

Three months ended April 1, 2022 versus three months ended December 31, 2021 – Operating income decreased $5.7m, Adjusted EBITDA decreased $5.7m and margin decreased 740 basis points versus the fourth quarter of 2021. Compared to the prior period, results declined primarily due to lower sales and associated gross profit for our JPF and SH-2 programs.

Three months ended April 1, 2022 versus three months ended April 2, 2021 – Operating income decreased $9.6m, Adjusted EBITDA decreased $9.6m and margin decreased 1400 basis points versus the first quarter of 2021. Results declined compared to the same period last year, primarily due to lower K-MAX® sales, unfavorable K-MAX® blade exchanges and JPF sales mix. Additionally, results were impacted by increased R&D spend for new technologies.

Structures – Our Structures segment serves the aerospace and defense and medical end markets providing sophisticated complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft, and medical imaging solutions.

Three months ended April 1, 2022 versus three months ended December 31, 2021 – Operating income decreased $1.1m, Adjusted EBITDA decreased $1.1m and margin decreased 340 basis points versus the fourth quarter of 2021. Compared to the prior period, results declined primarily due to lower sales in our AH-1Z program.

Three months ended April 1, 2022 versus three months ended April 2, 2021 – Operating income decreased $0.9m, Adjusted EBITDA decreased $0.9m and margin decreased 200 basis points versus the first quarter of 2021. Compared to the same period last year, results declined primarily due to lower sales in our AH-1Z and composite blade programs. This was partially offset by improved volumes and margins in our Rolls-Royce program. (Source: BUSINESS WIRE)

29 Apr 22. Bristow Group to Acquire British International Helicopter Services Limited, Further Enhancing its Leading Government Services Offering.

BIH currently delivers combined search and rescue (SAR) and support helicopter services for the UK Ministry of Defence (MOD) with operations in the Falkland Islands
BIH also delivers Fleet Operational Sea Training (FOST) helicopter support for the Royal Navy
All-cash transaction, expected to close in the third quarter of 2022

Bristow Group Inc. (NYSE:VTOL) today announced its plans to acquire British International Helicopter Services Limited (“BIH”), further enhancing its leading global Government Services business.

Bristow will continue to build upon BIH’s strong relationships established through a longstanding history of serving both military and civilian markets. Bristow expects to realize efficiencies by leveraging its scale to continue providing safe and reliable vertical lift solutions in the region.

“Bristow looks forward to adding BIH’s complementary business and capable team members to our portfolio. This acquisition will further our government services business as we look to strengthen existing relationships and develop new partnerships throughout government sectors for safe and reliable vertical lift solutions,” said Chris Bradshaw, President and CEO of Bristow Group. “Bristow is the leader in vertical lift for government services today. By adding BIH’s existing capabilities and experienced team members and building off its history in working with the British Armed Forces, Bristow will be well-positioned to further expand our services throughout the UK and beyond.”

BIH will add to Bristow’s operations in the UK and adopt the Bristow name and brand throughout its operations. BIH currently operates a fleet of two AW189 SAR-configured helicopters, three S61 helicopters, and one AS365 helicopter, performing various passenger and freight transport as well as hoist operations.

“Since stepping in to preserve an important national asset in 2013, Rigby Group’s aviation division has worked diligently on strengthening British International Helicopters’ operational and commercial foundations. With the right partnerships, infrastructure, and global reach, the business is now well placed for growth. We believe that ambition will best be served by BIH becoming part of an industry heavyweight like Bristow Group,” said Paul Southall, Managing Director of British International Helicopters. “In Bristow, we believe we have found the perfect natural home for both the company and the team who have helped get BIH to its robust and secure position. BIH will be superbly positioned to strengthen and grow as part of Bristow.”

The acquisition is an all-cash transaction and is expected to close in the third quarter of 2022, following required regulatory approvals and satisfaction of other customary closing conditions. (Source: PR Newswire)

02 May 22. Safran develops its inertial micro-sensor strategy. Safran Electronics & Defense is taking a major step forward in its inertial navigation strategy by grouping two subsidiaries, Safran Colibrys (Switzerland) and the recently acquired Sensonor (Norway,) under a single banner, Safran Sensing Technologies.

The similarities in expertise, market position, customers and technologies result in a clear process of synergy between these two companies, renowned worldwide for the quality and precision of their accelerometers, gyrometers and Inertial Measurement Units (IMUs) MEMS-based. The creation of Safran Sensing Technologies illustrates Safran’s commitment to developing its micro-sensor business through these two companies.

The ambition is to jointly offer an ever wider, more coherent, innovative and comprehensive range of inertial technologies (vibrating sensors, optics, MEMS) for all types of applications in aeronautics, defense, new space, new mobilities, industry, etc. This strategy will contribute to preserve the independence and industrial control of these predominantly electronic technologies in Europe. In this field, many markets are emerging such as those for new mobility, vehicle autonomy or even space, and the quantities to be produced are increasing sharply.

The two subsidiaries have already delivered more than 20 m MEMS sensors to the aeronautics, defense, space, transport, new mobility, industry sectors. For example, MEMS are found in the control accelerometers of the very first airbags, in the high temperature accelerometers for guiding drill heads or in seismic sensors measuring the structural health of buildings or civil engineering works, and finally in inertial measurement units for civil, military and space vehicles.

This operation is part of a broader Safran Electronics & Defense strategy designed to strengthen the company’s position in the market for resilient positioning, navigation and timing (PNT) solutions.

According to Martin Sion, CEO of Safran Electronics & Defense, “In this increasingly competitive market constantly being renewed. Our objective is to strengthen the consistency and complementarity of our offer to develop new applications by relying on our extensive expertise in the fields of MEMS and electronics.”

02 May 22. Gadfin expands its international operations and announces $7m round of funding, led by the Southern Israel Bridging Fund VC (SIBF).

The funding will strengthen the company’s activity in the transportation of critical medical equipment via its eVTOL platforms.

Gadfin – developer of game-changing eVTOL solutions for long-range B2B urgent all-weather unmanned aerial delivery and scanning services, especially for the medical supply segment – announces the closing of its round A of funding, which was led by SIBF along with GEHR Cooperation and other strategic investors, for $7m. The funds raised will enable the company to obtain CAA certification approvals for its Spirit-One air platforms in the regions in which it operates, and to further expand its international activities in the transportation of critical equipment via its unique patented unmanned systems.

Based on proprietary eVTOL technology, Gadfin’s drone service delivers low-to-medium payloads over unprecedent long ranges, meeting a growing need for urgent and express delivery of B2B products, with emphasis on the medical supply segment.

The company’s flagship product – the hydrogen fuel cell powered Gadfin Spirit-One – is designed for long-range deliveries of up to 250km (155 miles), at a speed of 100km/h (62 miles/h), enabling mission-critical cargo delivery. Its insulated compartment enables lifesaving medical aid to be delivered safely and kept cool, at temperatures as low as -70 C (-94 F), thanks to Gadfin’s custom packaging. As well as the efficient scanning of gridlines for its customers.

All Gadfin’s systems feature patented folding wings that enable easy and stable vertical takeoff and landing (VTOL), requiring only a small work-area footprint. With their wings expanded and forward propulsion, the drones achieve unparalleled energy efficiency, extended flight time and extended range.

“We are pleased to announce that we have concluded our Series A round of funding,” says Eyal Regev, CEO and founder of Gadfin. “We secured $7 m in this round, enabling us to mature our air platforms, and support the growing number of POCs and contracts we have planned for the coming years. This investment shows the confidence of investors in our breakthrough technology for logistic deliveries and life-saving assistance.”

“Having examined Gadfin’s eVTOL technology, we believe that this is a real game-changer, with strong market potential,” says Boaz Or-Shraga, General Partner at SIBF VC. “Gadfin brings unique features and strong performance to the growing field of aerial transportation. We decided to invest in the company because of its superb team, led by Eyal, and we believe that we can make a meaningful contribution as part of our investment model. We are privileged to have with us on board GEHR corporate, which will bring significant strategic benefit to Gadfin.”

About Gadfin

Gadfin develops next-generation high-value package delivery and aerial scanning products and services.

Engineered from the ground up by Israel’s top aerospace industry experts, the versatile design has proven to provide the most robust and efficient air logistics platform to date.

Operated by unmanned autonomous robotic centers and tracked through cellular and satellite communication, the drones meet international standards (ADS-B, Remote ID compliant with UTM systems), enabling flight in urban and suburban areas.

Setting security standards through multiple measures initiated by Gadfin, the drones are fully equipped with an emergency parachute and advanced anti-collision technology.

About SIBF

SIBF VC – Southern Israel Bridging Fund is a venture capital firm based in Beer Sheva, Israel. The firm primarily invests in the information technology, ag-tech, cybersecurity, digital health, health tech, mobile, artificial intelligence, and machine learning sectors.

02 May 22. RFEL Announce Change of Company Name to Rheinmetall Electronics UK Ltd. RFEL, Newport, Isle of Wight/UK, announce that as part of their planned growth strategy, a programme of rebranding is in progress, including changing their company name to Rheinmetall Electronics UK Ltd. As part of their growth strategy, the company is transitioning to a new name: Rheinmetall Electronics UK. This name represents an important milestone for the company; becoming more closely aligned with the wider Rheinmetall mission, but also recognisably representing Rheinmetall Electronics Solutions in the UK. Rheinmetall Electronics UK has been part of the Rheinmetall Group since 2009 and this transition will strengthen thier presence within the UK as a product and systems provider, as well as securing a strong foundation for Rheinmetall Electronic Solutions in both domestic and export markets. Rheinmetall Electronics UK has experienced significant growth over the last 18 months, increasing their team size by 50%. This trajectory is set to continue, with plans for expansion to span across the next four years and beyond, both in headcount and turnover. The company is part of the British industry’s Boxer MIV and Challenger 3 team, which drives two of the most important modernisation programs for the British Army. Rheinmetall Electronics UK’s Managing Director, Richard Streeter said: “This is another important milestone in the history of this exciting company. We have seen spectacular growth in recent years and with this name change we solidify our presence in the UK as a major military equipment provider. The name reflects our ability to offer the full spectrum of products from our own portfolio and that of Rheinmetall Electronic Solutions. This move positions the company for the journey to 2030 and beyond, as we support our customer’s missions in both the domestic and export markets.”

29 Apr 22. Adranos, Inc. has announced a $20m Series A funding round with participation from Bob Bishop and other principals at Impala Asset Management LLC and several other entities, including Explorer1 Fund, Elevate Ventures, and Specific Impulse Capital — this round brings the total capital raised by the company to date to over $25m.

Co-founded in November 2015 by Brandon Terry, Ph.D, and Chris Stoker, Adranos manufactures solid rocket motor propulsion systems for space launch vehicles, hypersonic boosters, tactical missiles, and other platforms. The company’s motors feature its proprietary aluminum-lithium alloy fuel called ALITEC that significantly increases the range, payload performance, and speed of defense and space systems.

The Series A funding round closed after Adranos successfully completed a test campaign of ALITEC-fueled tactical missile-sized solid rocket motors. Conducted under an effort jointly funded by the U.S. Navy and U.S. Air Force, the tests validated ALITEC’s performance advantages at scale.

Adranos completed its tactical motor test campaign at its 450-acre, coastal Mississippi facility. Acquired in late 2020, the Mississippi Rocket Complex serves as Adranos’s primary manufacturing site with the capacity to mix, cast, and produce more than 1,000 tactical, missile-sized rocket motors per year. The site is also equipped with static test infrastructure, energetic storage facilities, and R&D labs.

With the new investment, Adranos will grow its teams in Indiana and Mississippi as well as ramp up its production capacity. Additionally, Adranos will design, test, and manufacture solid rocket propulsion systems for its customers in defense and commercial space. About Adranos

“National security and commercial space customers want substantially more performance from solid rocket motors, and that is exactly what we offer them,” said Chris Stoker, CEO and co-founder at Adranos. “Putting ALITEC-fueled rockets in the hands of the U.S. Department of Defense and allied nations, whether for hypersonics or tactical missiles, will have a transformational impact on global security.”

“In 2019, we conducted flight tests under an Army program, demonstrating that motors utilizing ALITEC fuel could increase the range of a missile system by nearly 40 percent while keeping other variables constant,” said Brandon Terry, CTO and co-founder at Adranos. “In 2021, the motors we tested were 10 times larger and revealed a performance increase beyond what we previously thought possible.”

“We see significant market potential for Adranos in defense and space,” said Bob Bishop, CIO and founder at Impala Asset Management and longtime investor in defense and aerospace companies. “It’s apparent to me that Adranos directly addresses the needs of the U.S. Department of Defense as well as defense and commercial space launch entities. The company offers significant value as a new solid rocket motor manufacturer to those companies building missiles, hypersonic boosters, and other defense systems.”

Adranos builds next-generation solid rocket motors for a safer and more connected world. The company’s propulsion systems provide customers with unprecedented performance, allowing them to seamlessly increase the range, speed, and payload capacity of their rocket-powered systems. Learn more about Adranos at its website: www.adranos.com. (Source: Satnews)

29 Apr 22. Honeywell raises full-year profit forecast as air travel surges. Honeywell International Inc raised its full-year profit forecast on Friday, as a recovery in aviation markets due to a pickup in travel boosted demand for the company’s parts, software and aftermarket services, sending its shares up as much as 6%.

Booming air travel demand has prompted legacy aircraft makers such as Boeing Co (BA.N) and Airbus SE (AIR.PA) to increase production, leading to higher orders for parts makers such as Honeywell.

“Our end market setup continues to be strong with ongoing improvement in global flight hours, return to public spaces and elevated oil prices,” Chief Financial Officer Gregory Lewis said during an analyst call.

The company, which builds everything from aircraft engines to cockpit components, said it expects 2022 adjusted profit per share of $8.50 to $8.80, higher than its previous forecast range of $8.40 to $8.70.

Honeywell’s results were also helped by higher sales in the segment that makes fire sensors and security cameras for buildings as more people returned to working from office.

“We think underlying demand momentum in Honeywell’s end markets continues to build, supporting relatively good visibility despite what remains a challenging operating environment,” Citi Research analyst Andrew Kaplowitz said in a research note.

Honeywell also raised the lower end of its full-year sales guidance to $35.5bn to $36.4bn from its previous range of $35.4bn to $36.4bn, in contrast to its peer Raytheon Technologies (RTX.N) which cut its outlook on Tuesday.

Honeywell’s first-quarter adjusted net income per share of $1.91 beat analyst expectations of $1.86 per share, according to Refinitiv data, on higher prices.

Sales in the North Carolina-based company’s high-margin aerospace unit rose 4.4% to $2.75bn.

Honeywell said it also recorded a $183m charge and lost sales of about $30m in the quarter through March as the company “substantially” suspended Russia operations. (Source: Reuters)

29 Apr 22. Moog Inc. Reports Second Quarter Results. Moog Inc. (NYSE: MOG.A and MOG.B) announced today financial results for the quarter ended April 2, 2022.

Second Quarter Highlights

Sales of $771m were up 5% from a year ago;
GAAP diluted earnings per share of $0.91 included $0.59 per share in restructuring and impairment charges;
Non-GAAP diluted adjusted earnings per share of $1.49, up 12% from adjusted earnings per share a year ago;
GAAP operating margins of 7.4% with adjusted operating margins of 10.6%;
$23m GAAP cash flow from operating activities and $13m adjusted cash flow from operating activities;
GAAP effective tax rate of 24.9% and adjusted effective tax rate of 24.4%.

Segment Results

Aircraft Controls segment revenues in the quarter were $311m, 2% higher year over year. Commercial aircraft revenues were $119m, a 16% increase. Sales to commercial OEM customers were unchanged with an increase in A350, 737, and business jet sales compensating for slower sales of 787 and other OEM products. Commercial aftermarket sales increased 61% on very strong repair and overhaul activity, particularly on the 787 aircraft, and one-time sales of test equipment that were booked in the quarter.

Military aircraft sales were $192m, down 5% year over year. Military OEM sales were down 11%, to $137m. Lower F-35 Joint Strike Fighter sales and foreign military sales were partially offset by increased V-22 sales. Military aftermarket sales were 14% higher on increases across multiple programs.

Space and Defense segment revenues were $223m, an increase of 8% year over year. Defense sales of $136m increased 15%. Strong sales of the RIwP® turret and various components continued and offset lower sales for tactical missile applications. Space sales were mostly unchanged, at $87m, the result of reduced hypersonic development activity and lower sales of heritage space components, offset by growth in sales of new space vehicles.

Industrial Systems segment sales in the quarter were $236m, up 10% from a year ago, excluding the impact of foreign exchange movements and portfolio shaping activities. Sales of simulation and test products were 50% higher, as flight simulation activity for pilot training increased. Energy sales were up 14%, tied to the strength in oil prices and associated onshore and offshore exploration activity. Sales of products for industrial automation applications were down marginally, as the company completed minor portfolio shaping activities. Medical product sales were down 4%, the result of slower sales of components used in ventilators.

In the second quarter, the Company incurred $25m of restructuring and impairment charges. Delayed recovery in the commercial aircraft OEM business resulted in $19m of charges within the Aircraft Controls segment. The Company also recorded $4m related to further portfolio refinements in the Space and Defense Controls and Industrial Systems segments and $2 m of asset write-downs related to exiting activities in Russia as a result of the invasion of Ukraine.

Consolidated 12-month backlog was $2.3bn, up 17% from a year ago.

“We’re pleased with our results this quarter which came in ahead of forecast,” said John Scannell, Chairman and CEO. “Our backlog continues to grow, and our longer-term outlook remains positive. We’re managing through the on-going challenges associated with COVID and supply chain disruptions and are confident in meeting our forecast 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 $5.24, and adjusted diluted earnings per share of $5.50, both plus or minus $0.20;
Forecasted GAAP operating margins of 10.0% and adjusted operating margins of 10.3%;
Forecasted cash flow from operating activities of $328m and adjusted cash flow from operating activities of $228m; and
Forecasted GAAP effective tax rate of 25.0% and adjusted effective tax rate of 25.4%. (Source: BUSINESS WIRE)

29 Apr 22. France’s Safran tackles impact of Ukraine war but confirms targets. French aerospace group Safran (SAF.PA) warned of “significant impacts” from the war in Ukraine and from rising inflation, but confirmed full-year forecasts as it reported 22% growth in first-quarter revenue.

The maker of jet engines and landing gear said quarterly adjusted sales rose 17% on a like-for-like basis to 4.071 bn euros ($4.3 bn).

“We are taking vigorous steps to offset fully the margin impact of the Russia-Ukraine conflict and inflation, notably with additional savings,” Chief Executive Olivier Andries said.

Together with General Electric (GE.N), Safran co-produces the world’s most sold jet engines for Boeing (BA.N) and Airbus (AIR.PA) medium-haul airliners through their CFM venture.

The widely watched civil aftermarket, depressed during the COVID pandemic, rose 52.9% in dollar terms in the first quarter, contributing to an 18.8% increase in total propulsion revenues.

Safran had been active in Russia where it supplies engines for the Superjet regional plane and Kamov helicopters, while also providing services for some 500 CFM-powered jetliners.

It has suspended exports and services under European Union sanctions imposed after Russia’s invasion of Ukraine. Its ArianeGroup rocket venture with Airbus (AIR.PA) has suspended using Soyouz launches.

Safran also relies on Russia for 50% of its needs of titanium, used in engine parts and landing gear.

It said its 2022 needs were covered and it was securing alternatives.

Inflationary pressure on raw materials linked to the crisis and extra freight spending will add costs equivalent to 0.8 percentage points of its profit margin, Safran said.

The group announced “vigorous cost savings” to offset a total headwind equivalent to 1.5% of its 2022 recurring margin but confirmed full-year forecasts. ($1 = 0.9511 euros) (Source: Reuters)

29 Apr 22. L3Harris Q1 2022 revenue falls as supply chain issues continue. L3Harris’ net income in the quarter, however, increased to $475m, from $466m in Q1 2021. US-based technology company and defence contractor L3Harris Technologies has reported a revenue of $4.1bn in the first quarter of the year that ended on 1 April 2022.

The figure represents a 10% decline compared to the $4.57bn recorded in the corresponding period a year ago. On an organic basis, revenue fell by 5%.

The company attributed the fall to lingering supply chain disruptions, timing of contract awards, and airborne programme transitions.

L3Harris’ net income in the quarter increased to $475m, from $466m in the same period a year prior. Earnings per share (EPS) were $2.44 in Q1 2022.

Earlier this year, L3Harris announced the reorganisation of its operations and moved from four business segments to three.

The company’s Integrated Mission Systems segment posted a revenue of $1.72bn in the first quarter of 2022, declining marginally from the $1.75bn recorded in the same period last year.

Space and Airborne Systems’ quarterly revenue also fell marginally on a year-on-year (YoY) basis from $1.46bn to $1.45bn.

The other business segment, Communication Systems, reported a 13% drop in quarterly revenue, with figures dropping from $1.1bn in Q1 2021, to $963m in Q1 2022.

In a letter to investors, L3Harris Technologies vice-chair and CEO Christopher E Kubasik said: “Our first quarter results are consistent with our prior guidance of a back-half 2022 ramp in revenue and margins. Revenue declined 10% and 5% organically from continued supply chain disruptions, award timing, and airborne programme transitions.

“Segment operating margin declined 40 basis points primarily due to supply chain disruptions. EPS of $2.44 was up given the absence of non-recurring items and non-GAAP EPS of $3.12 was down due to the decline in revenue and margins, partially offset by tax rate favourability and a share count decline of 6% year-over-year from our ongoing share repurchase activity.” (Source: army-technology.com)

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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.

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