04 Nov 04. BAE Systems yesterday became a subject of a government investigation into possible false accounting. The contracts at the centre of the probe formed part of its substantial defence work in Saudi Arabia, where the British defence giant has one of its most profitable operations. The Serious Fraud Office, backed by defence ministry police, conducted early morning raids at eight homes and offices in London and southern England in connection with the inquiry, although no BAE sites or personnel were involved. It also arrested two men – one a former BAE official – as part of the sweep. Both were later released without charge. The SFO has been examining allegations that BAE used two small travel and services companies – Robert Lee International (RLI) and Travellers World – to funnel extravagant gifts to members of the Saudi royal family in the mid-1990s in order to keep Al Yamama, its business in Saudi Arabia. The company has strenuously denied the allegations, and RLI has also been accused in the past of defrauding BAE in the Saudi work by submitting invoices for work it never did, an allegation the SFO has been investigating for more than three years. Although the SFO did not name the men arrested, one is believed to be an RLI employee.BAE said yesterday that it did not believe it was the target of the SFO investigation.
Nov 04. The Seattle Times reported that Boeing defense programs may be hurt by a shake-up in defense spending in the next few years as the U.S. government struggles with a growing budget deficit, said James Albaugh, head of Boeing’s defense business. “You’re going to see a reprioritization of many of the programs that the government is funding,” Albaugh said yesterday at a Goldman Sachs investor conference in New York that was broadcast over the Internet. “All big programs will come under scrutiny because of their size.” The United States probably will look at large Boeing programs such as the C-17 cargo plane for the Air Force, the F-18 fighter for the Navy and work on a missile-defense shield, Albaugh said.
04 Nov. 4 The Allied Defense Group, Inc. (Amex: ADG – News) announces third quarter and nine months financial results for the period ending September 30, 2004. The Company said that while its third quarter and nine months results were behind 2003 results, it anticipates an excellent fourth quarter and a good full-year 2004 with estimated 2004 earnings in the range of $1.35 – $1.42 per share. Third Quarter Results — For the three months ended September 30, 2004, Allied earned $0.18m, or $0.03 a share fully diluted, on revenues of $37.1m, compared to earnings of $0.86m, or $0.16 a share fully diluted, on revenues of $34.9m, for the same period in 2003. Nine Months Results — For the nine months ended September 30, 2004, Allied earned $5.2m, or $0.89 a share fully diluted, on revenues of $116.8m. This compares to earnings of $7.1 million, or $1.23 a share fully diluted, on revenues of $120.3 million for the same period in 2003. Revenue — Revenue for the three months ended September 30, 2004 increased roughly 7% over the revenue for the same period in 2003. The change was primarily due to sales growth at NS Microwave and an increase in the value of the Euro. Sales at NS Microwave surpassed 2003 results by $4.6m, or 374%, due to improved order flow from its core business base within the Department of Homeland Security. Revenue for the quarter was positively impacted by a 7.9% increase in the value of the Euro over the same period in 2003.
01 Nov 04. “We are not in competition,” said Jean-Paul Béchat, the 62-year-old chairman and chief executive of Snecma, as the paparazzi crowded in around his younger, more photogenic counterpart at Sagem, Grégoire Olivier. He was explaining why the proposed €7bn ($8.9bn) merger between Sagem, a French company with operations spanning mobile phones, fax machines, biometrics, defence electronics and aircraft avionics, and Snecma, the state-owned aero engi