Germany’s Budget Committee Approves Five New Corvettes

By: Lars Hoffmann, November 12, 2016

The Budget Committee of the German Parliament rubber-stamped on Friday the procurement of five new corvettes for the German Navy, worth about €1.5 billion, sources familiar with the deal confirmed.

The decision is a sure sign that German MoD prefers a direct procurement of a second batch of K130 corvettes instead of a long lasting tender process and a new design.

The plan to acquire the additional corvettes was announced only a few weeks ago to a surprised public after it became clear that the selection of the winner for the new €4 billion frigate tender MKS 180 was delayed for six months till the end of 2017, after next general elections.

The Ministry justifies the procurement of the corvettes with new requirements of NATO, which were enacted in July. According to a Navy spokesman, NATO expects Germany to provide two additional corvettes at the highest readiness level for use in littoral operations from 2018 on. Due to shipyard time and training tasks, only two ships of the existing squadron of five are assigned to NATO missions.  Two extra corvettes for NATO therefore translate into a new squadron.

While the Navy hopes that the first corvettes will enter service by the end of this decade, well informed sources rule out a commissioning before 2021. The Navy wants a second batch of K130 with the least modifications possible to the existing ones to achieve synergies in training, logistics and maintenance.

If the Navy prevails, the two German shipyards Lürssen and TKMS that built the first batch of K130 and own the property rights for the design will likely profit from the new order.

With last night`s approval, funds were earmarked. However, before the final release of the money the formal procurement process has to be passed and an agreement with the contractor negotiated. As Rainer Arnold, defense policy spokesman of the Socialdemocrats in Parliament, said on Wednesday in Berlin, he does not expect a final approval within the current election period.

Source : DefenseNews

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Turkey’s Defense Exports Up 9 Percent for Year to Date

Aug. 28, 2013

ANKARA — Turkey’s defense industry exports in the seven months ending in July reached $781 million, an all-time high for the period, and may be on course to set a record for the year, according to industry officials.

The export contracts signed during the first seven months of the year mark a 9 percent increase from the same period in 2012, according to Latif Aral Alis, chairman of Turkey’s Defense and Aerospace Industry Exporters’ Association.

He said aircraft and helicopter parts accounted for most of this year’s exports. Top buyers of Turkish-made equipment were the US and former Soviet republics in Central Asia. Other major export items were armored vehicles, vessels and fast boats, missiles, rockets and launch platforms, light weapons and ammunition, electronic systems (radio, command-and-control systems, simulators, sensors and application software), logistics support products (kitchen, hospital, clothing materials), and engineering and technology transfer services, Alis said.

The Turkish industry is aiming for a record high $1.5 billion in exports for the year.

“The export performance in the first seven months of the year was very promising for achieving the annual target,” Alis said.

Another promising figure was Turkey’s cumulative research and development spending, which has reached $772 million this year, also a record.

“This is due to investments in high-value and intensive know-how programs,” Alis said.

The Turkish defense industry is aiming for $4 billion in production and $2 billion in exports in 2016. As various national made-in-Turkey programs reach serial production stage after 2016, Turkey will reach for an ambitious defense and aerospace export target of $25 billion in 2023, according to Alis.

 

Source : DefenseNews

Denel Land Systems profits triple over last financial year

Written by defenceWeb

Monday, 27 August 2012

Earnings before interest and taxes for defence company Denel Land Systems increased from R9 million to R23 million for the 2012 financial year. The company was recently boosted by a record 340 million euro (R3.5 billion) contract with Malaysia to supply a range of turret and integrated weapon systems for its 8 x 8 armoured infantry fighting vehicles.

Denel Land Systems’ turnover for the 2012 financial year amounted to R546 million, down slightly from R554 million the year before. Export turnover increased dramatically, from R73 million to R262 million, according to Denel’s Annual Report 2012.

Although Denel Land Systems’ (DLS’s) financial performance was good over the last financial year, the company’s confirmed order book dropped by a third for the 2012 financial year, reaching R402 million, down from R680 million.

On May 17, 2011, Denel received ‘the largest landward system export contract in SA’s history’, when it received the Malaysian contract. DLS will be responsible for supplying 69 x two man turrets fitted with the South African GI30 30mm main gun; 54 x missile turrets equipped with the GI30 30mm gun and Denel Dynamics Ingwe anti-tank missile system; and 54 x remote control weapons systems. The turrets will be exported to Malaysia over a seven year period – with the first consignment ready for delivery this coming January. The turrets and weapon systems will be integrated on the Malaysian Army’s new 8 x 8 vehicles which are based on the Pars armoured vehicle platforms from the Turkish company, FNSS.

Denel said the future outlook in terms of potential prospects being pursued will double DLS’s turnover within the next three years – for instance, DLS successfully demonstrated a new weapon management system for artillery to international clients. The company also highlighted the successful business turnaround and the steady growth over the past five years of DLS. The company’s workforce has a head count of 420, an increase of 29 compared to the previous year.

Denel Land Systems designs, develops, integrates, supplies and supports landward based high-mobility, high-firepower product systems, combat turrets, rapid-fire small and medium calibre weapons, new generation combat vehicle systems, as well as artillery systems. DLS’s combat proven systems are in service in several countries.

Arguably its biggest project at the moment is producing the ‘Badger’ family of new generation infantry combat vehicles (ICV), under project ‘Hoefyster’. The development of variants continues apace, with a significant milestone of the product baseline for the ‘section variant’ achieved on 10 September 2010. This simultaneously kick-started a countdown process towards the much anticipated production order, with another four variants following closely behind the lead prototype vehicle, Denel said.

Project Hoefyster is utilising five modular combat turret variants, armed with the home-grown GI-30 (30 mm CamGun) and 60 mm breech-loading long-range mortar system. The Ingwe anti-tank missile system is integrated into the anti-tank variant of the 8 x 8 armoured modular vehicle platforms. The aim of project Hoefyster is to replace the South African Army’s ageing fleet of Ratel infantry combat vehicles in a phased approach, whilst also creating specific export potential.

Another notable achievement over the last financial year for DLS came when it obtained a vehicle capability after taking a majority stake in LMT Holdings (Pty) Ltd. This will enable DLS to produce the Badger, which is a local version of the Finnish Patria combat vehicle.

Denel recently announced that, as part of restructuring designed to save money and increase efficiencies, Denel Land Systems and Mechem will be integrated into a single entity. At the group’s headquarters in Irene, Denel Dynamics will incorporate the division responsible for the design and manufacturing of unmanned aerial vehicles (UAVS) as well as Denel Integrated Systems Solutions.

Source: defenceweb.co.za

Denel Dynamics Missiles earnings up for 2012

Written by defenceWeb

Thursday, 02 August 2012

Denel Dynamics Missiles has posted improved earnings for the 2012 financial year, with earnings before interest and taxes of R11 million, up from R5 million the previous year.

Denel’s Annual Report 2012 revealed that the unit recorded a turnover of R619 million for 2012 (down from R729 million the previous year) and export turnover of R194 million (up slightly from R192 million the previous year). Denel noted that, historically, Denel Dynamics Missiles has posted financial losses due to onerous contracts, amongst other factors. Although it has recorded marginal profits for the second successive year, its order cover and the closure of key contracts remain challenges.

The company’s confirmed order book is down by R117 million, at R598 million for the 2012 financial year ending March. Denel said one of the unit’s highlights was the posting of a nominal profit, with a continued year-on-year improvement in overall business performance in accordance with the “Voyage to Excellence” programme launched in 2007.

Some of the unit’s highlights include the conclusion of Umkhonto missile deliveries to a European country, which were completed in 2011/2012.

Denel Dynamics Missiles said the development of the A-Darter missile is on track for production to commence in 2014. Final missile qualification and performance validation is under way to achieve critical technical milestones in 2012/13 and 2013/14. As part of this evaluation the first two successful guided missile firings from a Gripen aircraft were successfully completed during February 2012. A-Darter is being developed jointly by South Africa and Brazil. “The success of this joint development is likely to lead to further alliances with other developing nations. There are discussions about follow-on collaborative projects and marketing strategies,” Denel said.

Denel Dynamics CEO, Jan Wessels earlier this year said that, “I believe the DoD will contribute to the funding of a follow-up development missile programme, but its exact nature and funding model are still under discussion.”

In May 2011, Denel Dynamics Missiles concluded a contract for the sale of the Umbani precision guided bomb kit to an export customer. “This contract is a prime example of how the substantial investment in intellectual property over a number of years has been afforded an opportunity to yield a return for SA,” Denel said.

Other notable achievements included the integration and flight-testing of the Ingwe missile on the Eurocopter EC635 helicopter and the first flight test with an alternative multipurpose warhead. In addition, Denel Dynamics Missiles introduced the fire-and-forget configuration of its Raptor stand-off weapon. The full autonomous flight was a first for the Raptor weapon system.

Denel Dynamics Missiles employs 732 people. Its current range of products and systems includes the A-Darter, the Umkhonto-IR air defence missile, the Ingwe and Mokopa anti-armour missiles, precision-guided munitions and the Raptor II stand-off weapon.

Source: defenceweb.co.za

Le carnet de commandes de DCNS frôle les 15 milliards d’euros

09/03/2012

 

Le groupe naval français a réalisé un chiffre d’affaires de 2.6 milliards d’euros et un résultat opérationnel de 186 millions d’euros l’an dernier, en hausse par rapport à 2010 (2.5 milliards de chiffre d’affaires et 166 millions de résultat opérationnel). Ayant enregistré plusieurs gros contrats, dont celui des deux bâtiments de projection et de commandement pour la Russie, la commande d’un troisième sous-marin nucléaire d’attaque français du type Barracuda et un important avenant pour le programme des frégates multi-missions (FREMM), DCNS a enregistré l’an dernier pour 3.2 milliards d’euros de nouvelles commandes. C’est nettement moins que l’année précédente (6.9 milliards) mais 2010 avait été une année exceptionnelle, avec la signature du contrat pour les sous-marins brésiliens, le plus gros engrangé jusqu’ici par le groupe français à l’export.
A l’issue de 2011, le carnet de commandes de DCNS atteint 14.8 milliards d’euros, soit 600 millions d’euros de plus que fin 2010. Alors que la marge du groupe s’est encore améliorée (7.1% contre 6.6%), les contrats en portefeuille représentent cinq années de chiffre d’affaires, un niveau que beaucoup d’industriels envieraient.
Source: Mer et Marine

Thales: 2011 annual results

The Board of Directors of Thales met today to close the financial statements for 2011. Group Chairman and CEO Luc Vigneron commented: « Although the economic environment worsened more markedly than expected, particularly in defence, our order intake increased and our revenues held up well. A marked upturn in our results is now underway, driven by better contract execution, the momentum of the Probasis plan and our stronger footprint in growth regions. On the basis of this strong performance, which confirms the relevance of our strategy, we are confident in our ability to continue to improve our results, despite the serious economic uncertainties in Europe. »

  • Order intake: €13.21bn (+1% organic growth (1))
    Order intake increase driven by the Mirage 2000 upgrade contract in India and the good performance of civil aeronautics, mitigating the impact of reduced space orders after the exceptional level in 2010
  • Revenues: €13.03bn, organically stable (1) compared with 2010
    Strong resilience of defence activities and growth in civil activities
  • EBIT (2): €749m (5.7% of revenues), compared with -€92m in 2010
    Strong upturn reflecting a better project execution and the positive impact of the Probasis performance plan
  • Net profit (2), Group share: €566m compared with -€45m in 2010
  • Net cash (3): €192 m on the back of a continued steady generation of cash flow

If you are unable to listen to the call live on March 6, 2012 at 6:30 pm, a digital replay is available for two weeks.

To access the replay, please dial +33 (0) 1 72 00 15 00 or +44 (0) 203 367 9460(code 275984#).

Aerospace, defense deals reach record totals in 2011

NEW YORK, Feb. 7 (UPI)

Global aerospace and defense business reached record levels in 2011, up from $22 billion in 2010 to $44 billion, despite fears it could turn out to be a bad year overall for the industry, latest data indicated.

Most fears were based on reports of a decline in defense acquisitions, which did happen but was more than offset by an aerospace boom that seems set to continue this year.

U.S.-affiliated transactions dominated activity and cross-border deals showed a significant increase.

Government cutbacks and the allied withdrawal from Iraq and reduction in military commitments in Afghanistan gave rise to warnings last year that the defense industry was headed for a downturn but the high level of aerospace transactions has weighed in to produce upbeat results.

Findings of the industry’s surprise performance came in Mission Control, a quarterly PwC US analysis of mergers and acquisition activities in the aerospace and defense industries worldwide. The report used data from the fourth quarter figures and overall figures for the year.

« We saw a wide-ranging mix of deals in 2011 as global aerospace and defense M&A activity reached record levels, » said Scott Thompson, U.S. aerospace and defense leader at PwC.

« Larger deals became more common, driven by sales of slower-growth defense businesses and private equity exits, while smaller deals drove the bulk of deal volume as major players with ample liquidity focused on acquiring growth, » Thompson said.

The aggregate deal value during the year reached $43.7 billion supported by 341 deals, compared to total deal value of $21.9 billion and 332 deals in 2010.

The 2011 record surpassed the level of transactions reached in 2007 of $42 billion.

It was a year marked by mega deals in excess of $1 billion each, one of those for a total value of $16 billion.

A big increase in aerospace deals contrasted with a decrease in defense contracts.

Both aerospace and defense manufacturers are looking to markets in Asia and Latin America for a continued growth in orders. Asian and Latin American countries, including many in peacetime conditions, are busy modernizing their forces and fleets, activities that are set continue this year.

Government cutbacks in Western countries will continue to take their toll, however.

« The uncertain outlook is causing defense contractors to further globalize in the face of growing competition for a shrinking pool of business. These trends will play a major role in deal activity as the year unfolds, » Thompson said.

However, competition in the industry is growing too, as several countries continue multibillion-dollar investments to modernize their own aviation and defense industries and enter the markets on competitive terms.

Many nations, including China, India and Brazil, are trying to take advantage of the changing conditions and develop their own industries to compete with established rivals.

 

Thales confirme ses objectifs

8 Novembre 2011

Thales a annoncé mardi un tassement de son chiffre d’affaires sur neuf mois mais ses prises de commandes augmentent de 15%, profitant du dynamisme de l’aéronautique civile et du contrat de rénovation des Mirage 2000 en Inde.
L’équipementier a confirmé ses objectifs, à savoir une légère croissance de ses ventes cette année, avec un ratio « book-to-bill » (prises de commandes/chiffre d’affaires) proche de 1,0 et une marge opérationnelle courante de 5% en 2011 et de 6% en 2012, grâce aux fruits de son plan d’économies Probasis.
Thales a vu son chiffre d’affaires reculer de 0,5% à 8,614 milliards d’euros sur les neuf premiers mois de l’année, soit une stagnation en données organique, le recul accusé dans le pôle défense et sécurité compensant à peine la progression enregistrée dans l’aérospatiale et le transport.
Thales et Dassault Aviation, son premier actionnaire industriel avec 26% du capital, ont signé fin juillet le contrat attendu de longue date de modernisation des 51 avions de combat Mirage 2000 de l’armée indienne, qui représente environ un milliard d’euros pour Thales.
Yan Derocles, analyste chez Oddo Securities, juge le chiffre d’affaires en ligne avec les attentes, tout comme le ratio prises de commandes/CA, de 0,98 sur neuf mois mais qui n’est pas seulement dû aux gros contrats.
« On voit que les petites commandes inférieures à dix millions d’euros reprennent leur croissance », souligne-t-il. « Ce sont des commandes qui sont intéressantes parce qu’elles sont comptabilisées assez rapidement en chiffre d’affaires, donc ça donne au groupe une visibilité également sur le court terme ».
L’action Thales a clôturé en baisse de 0,71% lundi à 25,12 euros, donnant une capitalisation de 5,08 milliards. Elle a perdu 4% depuis le début de l’année, contre un recul de 8,6% pour Safran.

Source: REUTERS

Héroux-Devtek boosts profit as sales rise

MONTREAL— The Canadian Press
PublishedFriday, Nov. 04, 2011

Heroux-Devtek Inc. (HRX-T6.890.406.16%), a maker of aerospace and industrial products, reported Friday its net profit nearly doubled in the latest quarter on higher revenue and more efficient manufacturing.

The Montreal-area company said it earned $4.8-million, or 16 cents per share, in the three months ended Sept. 30, the second quarter of its 2012 fiscal year.

That compared with net earnings of $2.7-million, or 9 cents, a year ago.

Revenue for the period increased 3.4 per cent to $86-million from $83.2-million.

The company said its earnings before interest, taxes, depreciation and amortization rose as the company benefited from a better product mix and a better absorption of manufacturing overhead costs because of higher volumes.

Manufacturing improvements also had a favourable impact on operating profit, which rose to $7.6-million from $5.2-million.

“Héroux-Devtek recorded strong second quarter and first half financial results, a performance that clearly validates our focus on value-added products and services as well as earlier investments in productivity enhancement initiatives, as we constantly seek greater efficiency in order to offset the high value of the Canadian currency,” president and CEO Gilles Labbé said in the company’s earnings report released before stock markets opened Friday.

“Although the global macro-economic environment remains volatile, underlying demand in our core markets is robust with higher production rates for several large commercial aircraft programs, the ramp-up of new aircraft programs on which we are actively involved, and solid order books in our main industrial markets.”

Héroux-Devtek supplies landing gear and other parts to makers of commercial and military aircraft and provides industrial customers with large components for power generation equipment.

The company is based in Longueuil, Que. and has plants in the Montreal area, Kitchener, Ont., Toronto, U.S. plants in Arlington, Tex.; Springfield, Cleveland and Cincinnati, Ohio, as well as Queretaro, Mexico.

About 70 per cent of Héroux-Devtek’s sales are outside Canada.

Source: the globe and mail

 

Fiche Entreprise #1 – DCNS

La première fiche entreprise de l’observatoire vient de paraître. L’heureuse entreprise? Le groupe DCNS.

N’hésitez pas à nous contacter pour améliorer notre formule.

RAPIDE ANALYSE DES MARCHES DE DCNS

Le groupe DCNS est le principal maître d’œuvre français de systèmes navals de défense. Avec un chiffre d’affaires de 2,503 Mds€ en 2010, DCNS est un des leaders européens et mondiaux dans le domaine des constructions navales militaires. Le groupe opère dans la construction de navires militaires et les services associés. Il a notamment en charge la réalisation, la conception, l’entretien et le démantèlement des bâtiments de guerre. Depuis la privatisation de l’entreprise avec l’entrée de Thales dans le capital du groupe à hauteur de 25%, DCNS a mis en place une ambitieuse stratégie de diversification dans l’énergie (énergies renouvelables en mer et énergie nucléaire civile) et d’internationalisation de son activité (près du tiers du chiffre d’affaires est réalisé à l’export) ainsi qu’un plan d’optimisation des coûts de 30% sur 3 ans. Le groupe emploi plus de 12 500 collaborateurs en 2010.

Le reste en PDF 2011-08-10-FE1_dcns

L’équipe