By: Joe Gould 1 day ago
WASHINGTON ― General Dynamics has received $1 billion since the renegotiation of a $10 billion contract for Canada to sell light armored vehicles to Saudi Arabia, company officials said on its first quarter earnings call.
In a deal last month, Canada lifted its ban on arms sales to Saudi Arabia, which in turn agreed to a speedier payment schedule for the LAVs. Canada had the vehicles on hold since 2018, following the death of Saudi journalist Jamal Khashoggi; and by October, Saudi Arabia had racked up $1.5 billion in back payments to General Dynamics.
Amid news on the April 29 call that the company's revenue fell $512 million in connection with the coronavirus pandemic, General Dynamics Chief Financial Officer Jason Aiken highlighted “the formal signing of the restructured contract on the Canadian international program, which settled all issues to the satisfaction of the parties.”
“With respect to our standing receivable you may recall that we received $500 million early in the first quarter and we received another $500 million this month. This will be very helpful to free cash flow in the second quarter,” Aiken said.
“We will begin a regular cadence of scheduled payments in 2021 consistent with deliveries and making further progress in the scheduled amortization of the arrearage.”
The company's Combat Systems division had revenue of $1.7 billion, up 4.4 percent over the same quarter last year, and sales to the U.S. government were up 12 percent. The firm's aerospace business segment also had revenue of $1.7 billion, but that represented a 23 percent fall from the same quarter last year.
On April 9, Canada's foreign affairs minister, François-Philippe Champagne, announced Ottawa was “able to secure significant improvements” to the LAV contract, including more latitude for the Canadian government to speak about it.
Under the new terms, Canada could also delay or deny export permits without penalty if it learned Saudi Arabia was not using the vehicles for their stated purpose. Ottawa would also be reviewing permit applications on a case-by-case basis to ensure they meet Canadian law and the U.N. Arms Trade Treaty.
Though the Trudeau government has been under political pressure to scrap the LAV deal over human rights concerns, Champagne said its cancellation would have “resulted in billions of dollars in damages” and risked thousands of Canadian jobs across the defense supply chain.
The vehicles are made by the General Dynamics Land Systems subsidiary in London, Ontario.
February 26, 2021 | Local, Naval
The Parliamentary Budget Office says the projected cost of building the Canadian navy's new combat fleet is rising and could hit $77 billion. The watchdog released a new report that looks at alternate designs and a mixed fleet — ideas that could save taxpayers billions of dollars.
October 12, 2018 | Local, Aerospace, Security
Investment helps create up to 15 new high-value, local jobs and global opportunities PORT ALBERNI, BC, Oct. 11, 2018 /CNW/ - Canadians will benefit from a stronger aerospace industry and better aerial firefighting technology thanks in part to a new investment in a British Columbian firm specializing in firefighting aircraft. Today the Honourable Carla Qualtrough, Minister of Public Services and Procurement, Minister of Accessibility and Chair of the Cabinet Committee on Federal Recovery Efforts for the 2017 and 2018 British Columbia Wildfires, on behalf of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, announced a repayable investment of nearly $3.4 million in Coulson Aircrane Ltd., a small aviation company based in Port Alberni, British Columbia. This investment helps create good middle-class jobs and strengthens Coulson's position in the aerospace supply chain. The project will facilitate collaboration with post-secondary institutions, ensure workers have the skills they need and generate new Canadian intellectual property. This funding supports Coulson's first-of-its-kind research and development (R&D) initiative to convert a Boeing 737 plane into a dual-purpose aerial firefighting tanker / passenger aircraft that can be used to fight fires in Canada and elsewhere. This investment is being made through the Strategic Innovation Fund, a program designed to attract and support high-quality business investments across all sectors of the economy by encouraging R&D that will accelerate the transfer of technology and the commercialization of innovative products, processes and services and will facilitate the growth of innovative firms. Quotes "Our government's support for Coulson Aircrane demonstrates our commitment to Canada's aerospace industry—a major engine of innovation and a key contributor of well-paying jobs to the national economy. By investing in innovative projects like this one at Coulson, we're creating new opportunities for Canadians from coast to coast. That's how, through the Strategic Innovation Fund, we're investing in innovation today to create the jobs of tomorrow." – The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development "Innovative companies such as Coulson Aircrane are a key part of our government's plan to grow the economy and create well-paying middle-class jobs for British Columbians. As a world leader in aerial firefighting, Coulson is a testament to the kind of quality work that this region is capable of—and the quality talent that is right here in British Columbia. The development of this innovative technology will better protect our forests from wildfire damage and increase efficiency by providing the ability to deliver both fire retardant and fire-fighting personnel at the same time. This is a great demonstration of how Canada can lead in the technology economy.." – The Honourable Carla Qualtrough, Minister of Public Services and Procurement "Coulson Aviation is appreciative of Minister Qualtrough's announcement of Government of Canada support for innovation in Canada. This investment has been instrumental in our company's conversion of airliners into tankers for fighting fires as well as carrying passengers. Extensive aircraft modifications took place here at the Port Alberni airport, involving 140,000 hours of work in the community. We are proud that the newly completed air tankers will begin fighting forest fires globally this fall and that we are currently converting another airliner." – Wayne Coulson, CEO, Coulson Group Quick facts Coulson Aircrane is a family-owned company and a key player in the aerial firefighting business. The company works with firefighting agencies in Canada, the United States and Australia. Canada's aerospace industry includes 700 firms, directly contributes close to $12.6 billion in GDP to Canada'seconomy and employs more than 85,000 Canadians. The Strategic Innovation Fund is a flexible program that reflects the diversity of innovation in all sectors of the economy. In addition to the Strategic Innovation Fund, there are hundreds of programs and services to help businesses innovate, create jobs and grow Canada's economy. With a simple, story-based user interface, the Innovation Canadaplatform can match businesses with the most fitting programs and services in about two minutes. Follow Innovation, Science and Economic Development Canada on Twitter: @ISED_CA SOURCE Innovation, Science and Economic Development Canada For further information: Nilani Logeswaran, A/Press Secretary, Office of the Minister of Innovation, Science and Economic Development, 613-668-1794; Media Relations, Innovation, Science and Economic Development Canada, 343-291-1777, ic.mediarelations-mediasrelations.ic@canada.ca https://www.newswire.ca/news-releases/vancouver-island-company-to-advance-aerospace-innovation-and-firefighting-technology-696990951.html
May 22, 2019 | Local, Aerospace, Naval, Land, C4ISR, Security, Other Defence
Policy Direction: Strong, Secure, Engaged Strong, Secure, Engaged recognizes that collaboration with academia and other experts strengthens the foundation of evidenced-based policy-making. To that end, it provides direction to increase annual investment in a revamped and expanded defence engagement program. The Mobilizing Insights in Defence and Security (MINDS) program answers this call. Building on Success MINDS builds on the successful Defence Engagement Program (DEP), expanding the program thoughtfully, with an end result that is not just bigger, but better. Consultations have been at the heart of these renewal efforts. They started with the Defence Policy Review and have continued through ongoing dialogue with experts across the country. The DEP effectively helped the Defence Team access external advice through its Expert Briefing Series and Targeted Engagement Grant program. These successful program elements will continue. A New Approach to External Engagement Expanding on the DEP, MINDS delivers a program that: Responds to the need for relevant and timely advice from defence and security experts; Fosters the next generation of experts and scholars; and, Contributes to Canadians understanding of defence and security issues. However, MINDS provides even greater opportunities for collaboration between the Defence Team and the defence and security expert community. There are five key pillars of MINDS: Expert Briefing Series, Targeted Engagement Grants, Collaborative Networks, Scholarships, and a Rapid Response Mechanism. Each offers a different means for the Department of National Defence and the Canadian Armed Forces to access relevant, timely expertise that incorporates a diversity of viewpoints and provides well-rounded advice. The program is committed to reflecting key Government of Canada priorities in the work it delivers, ensuring the incorporation of Gender Based Analysis Plus (GBA+) and supporting Indigenous reconciliation and youth engagement. Defence Team Collaboration MINDS is different from, but complementary to, the Innovation for Defence Excellence and Security (IDEaS) program, using different approaches to tackle defence and security challenges. While IDEaS advances critical solutions to challenges relating to applied capabilities and technology, MINDS is focused on policy thinking and the generation of knowledge in the public policy realm. Together, MINDS and IDEaS drive innovation and help address defence challenges. Strong, Secure, Engaged calls for concrete steps to enhance the Defence Team's ability to anticipate and understand threats, challenges and opportunities. Leveraging the expertise of Canada's defence and security expert community through MINDS is central to meeting this objective. https://www.canada.ca/en/department-national-defence/programs/minds.html