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October 21, 2020 | International, C4ISR, Security, Other Defence
Lockheed sees earnings growth in space business
WASHINGTON ― Space emerged as Lockheed Martin's business area with the highest growth, driven by hypersonic weapons programs and an anticipated next-generation interceptor award, CEO James Taiclet said Tuesday on the company's third-quarter earnings call.
Though F-35 fighter jet deliveries and classified programs drove growth in Lockheed's aeronautics segment, and demand for Hellfire missiles drove the missiles and fire control segment, low single-digit increases were largely Lockheed's norm for the quarter.
“When we speak of hypersonics, I think there's a very big upside there because there's a very big threat. It's getting worse out of Russia and China, and the U.S. and its allies are going to have to meet it both on offensive and defensive hypersonic systems,” Taiclet said, adding that classified space systems are a “wide-open field.”
Taiclet also said he expects the government will work with industry to counter emerging kinetic and non-kinetic threats to space assets, ground stations and the links between them. He pointed to the Space Development Agency's selection of Lockheed, which is one of the firms building its “transport layer” — a low-Earth orbit constellation of satellites that can transfer data globally through optical intersatellite links.
Taiclet touted the satellite constellation's eventual ability to transmit data at high speeds to aircraft, ground troops, and surface and undersea vessels as synergistic with Lockheed's push into 5G networking, which Taiclet calls “5G.mil.” A telecom executive before he joined Lockheed in June, Taiclet speculated that the company's toehold will give it an advantage as competition in this business area heats up.
SDA Director Derek Tournear previously stated that the transport layer will be the space component of Joint All-Domain Command and Control, or JADC2, a Pentagon effort to connect any sensor to any shooter across domains and services. The effort now has a “C” at the beginning — CJADC2 — for “Combined.”
Lockheed reported Tuesday that its space segment's net sales in the third quarter of 2020 increased $163 million, or 6 percent, compared to the same period in 2019. The segment earned $90 million for government satellite programs due to higher volume (primarily Next Generation Overhead Persistent Infrared satellites), and about $60 million for strategic and missile defense programs due to higher volume (primarily hypersonic development programs).
Space's operating profit in the third quarter of 2020 decreased $61 million, or 20 percent, compared to the same period in 2019. There was a decrease there of $50 million due to lower equity earnings from the corporation's investment in United Launch Alliance ― a joint venture with Boeing.
Lockheed announced last week it will partner with Aerojet Rocketdyne to compete for the Next Generation Interceptor program, which is run by the Missile Defense Agency. The MDA plans to downselect to two companies, with an eventual winner expected to have a system ready in 2028.
On Tuesday's call, Taiclet said Lockheed's acquisition of Integration Innovation Inc.'s hypersonics portfolio this month was to provide a new capability in thermal management for hypersonic glide bodies.
The deal with i3 of Huntsville, Alabama, was part of a broader mergers and acquisition strategy, that includes joint ventures and commercial partnerships, to add to the company's “technological firepower” in areas like mission systems, he said.
“We plan to be active, but we plan to be very, very prudent,” he noted.
It was disclosed last week that the Pentagon's nascent hypersonic missile, during a March 19 test in Hawaii, hit within 6 inches of its target. The Army is developing a ground-launched capability and plans to field a battery-sized hypersonic weapon to soldiers by 2023.
Lockheed executives were upbeat about space launch. Under a recent Pentagon award, potentially worth billions of dollars, to launch national security payloads over the next five years, ULA will receive 60 percent of the contracts and SpaceX will get 40 percent.
Asked Tuesday about competition between ULA and SpaceX, Lockheed Chief Financial Officer Ken Possenriede acknowledged SpaceX as “more than an emerging threat right now.”
“Of the recent competitions we've had with them, we've been pleased with where ULA landed relative to SpaceX,” Possenriede said. “We also think we now have a price point that is compelling to customers that will allow ULA to get its fair share of awards over SpaceX.”
https://www.defensenews.com/2020/10/20/lockheed-sees-earnings-growth-in-space-business/
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October 4, 2019 | International, Aerospace
Leonardo: Europe Should Have Role In Future Vertical Lift
Tony Osborne The managing director of Leonardo's helicopter business says he would like to see a role for European industry in the programs that emerge from the U.S. Army's Future Vertical Lift (FVL). Gian Piero Cutillo told Aerospace DAILY on the sidelines of the 1,000th AW139 helicopter delivery in September that the European helicopter industry had generated the competencies to make it a useful partner in such a program, and said the company was in continuous talks with different partners but “there is nothing concrete.” European industry points to the F-35 Joint Strike Fighter program, which while securing significant sales in Europe has had an impact on the sales of European-built combat aircraft. There is a fear that with the volume of FVL platforms likely to be purchased by the U.S., their price could make FVL an attractive proposition for export customers. Sikorsky's Black Hawk has secured an increased customer base, particularly in Eastern Europe in recent years. The U.S. Army's work on a Future Long-Range Assault Aircraft (FLRAA) and Future Attack Reconnaissance Aircraft (FARA) is beginning to attract attention from European nations, with the U.S. Army planning to begin sharing information with allies shortly. The UK already has personnel embedded into the FVL program and is working on an operational analysis of its future helicopter fleets, with a focus on what high-speed rotorcraft can offer UK land forces. “From my heart, I would like to see European industry become one of the main actors. I strongly believe we have all the capabilities,” Cutillo said. “We are talking about what will be a global program, with more than one technology and room for the traditional technology as well.” Any FVL partnership should not be like that of previous programs, Cutillo said. European industry has already begun the development of high-speed rotorcraft, such as Leonardo's AW609 tiltrotor, Airbus' X3 compound helicopter and a future development of the latter, the Rapid And Cost-Efficient Rotorcraft (RACER). But so far they are targeted to the commercial market. An Airbus proposal for FARA, believed to use the X3 technology, was rejected earlier this year, with only U.S.-based companies awarded contracts. The Italian military is said to be interested in purchasing the Leonardo tiltrotor. But contractual limitations imposed by Bell, which was previously a partner on the AW609, stipulate that the aircraft cannot be offered with armaments. It is unclear whether these limitations extend to future tiltrotor models. Leonardo is investigating future tiltrotor technologies through the European Union Clean Sky 2 program, with a technology demonstrator, the Next Generation Civil Tilt Rotor, due to fly in 2023. https://aviationweek.com/vertical-flight/leonardo-europe-should-have-role-future-vertical-lift
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Philippines eyes mid-range missiles, 40 fighter jets to modernise military