January 15, 2024 | International, Land
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/
On the same subject
-
-
December 18, 2019 | International, Land, C4ISR
FLIR Awarded $92.9 Million Contract for Logistics Support to U.S. Army Product Manager Force Protection Systems
Arlington, Va., December 16, 2019 ― FLIR Systems, Inc. (NASDAQ: FLIR) announced that it has been awarded a five-year, firm-fixed-price Indefinite Delivery, Indefinitely Quantity (IDIQ) contract by the U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland. The IDIQ vehicle has a ceiling value of $92.9 million, with an initial order of $5.2 million. The award is for repair, refurbishment, and logistics support of electro-optical (EO) and infrared (IR) sensors used by the Army's Product Manager Force Protection Systems programs, including Base Expeditionary Targeting Surveillance System-Combined (BETSS-C), Combat Outpost Surveillance Force Protection System, and Foreign Military Sales. BETSS-C entails a combination of cameras and surveillance equipment mounted on deployable towers and used to monitor wide areas around important military locations and bases. FLIR has been part of the BETSS-C effort since 2004 when it was called RAID, providing long-range EO/IR sensors at the heart of the system. Today, the company supplies high-definition sensors for BETSS-C as well as radars capable of detecting vehicles, people, or other moving objects at range. FLIR has delivered more than a thousand EO/IR sensors to the U.S. Army as part of the BETSS-C program. This latest IDIQ maintains the service partnership and related revenues FLIR has accrued with the Army, while augmenting the company's ability to meet their needs. “BETSS-C is a critical piece of technology that supports the safety of U.S. forces and its allies at locations around the world,” said David Ray, president of FLIR Systems' Government and Defense business unit. “We value this opportunity to support the Army and optimize the capabilities of this vital surveillance system.” The contract covers a five-year period of performance starting in the fourth quarter of 2019. Work will be performed at FLIR's Wilsonville, Oregon site and international repair facilities. About FLIR Systems, Inc. Founded in 1978, FLIR Systems is a world-leading industrial technology company focused on intelligent sensing solutions for defense, industrial, and commercial applications. FLIR Systems' vision is to be “The World's Sixth Sense,” creating technologies to help professionals make more informed decisions that save lives and livelihoods. For more information, please visit www.flir.com and follow @flir. Forward Looking Statements The statements in this release by David Ray and the other statements in this release about the contract and order described above are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates, and projections about FLIR's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the following: the ability to manufacture and deliver the systems referenced in this release, changes in pricing of FLIR's products, changing demand for FLIR's products, product mix, the impact of competitive products and pricing, constraints on supplies of critical components, excess or shortage of production capacity, the ability of FLIR to manufacture and ship products in a timely manner, FLIR's continuing compliance with U.S. export control laws and regulations, and other risks discussed from time to time in FLIR's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and FLIR does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release, or for changes made to this document by wire services or Internet service providers. View source version on FLIR Systems: https://www.flir.com/news-center/military/flir-awarded-$92.9-million-contract-for-logistics-support-to-u.s.-army-product-manager-force-protection-systems/
-
September 29, 2022 | International, Aerospace
Lithuania boosts defense budget to buy Switchblade drones
In response to Russia's invasion of its neighbor Ukraine, Lithuania has decided to expand its military budget.