November 7, 2024 | International, Land
Hensoldt's revenue soars 21.3% in first nine months of 2024
Hensoldt, German defence contractor, has reported €1.37bn ($1.47m) revenue for the first nine months of 2024, marking a 21.3% increase.
March 5, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
McCarthy: Without budget growth, Army heads toward ‘collision course’
Jen Judson
WASHINGTON — Without top-line growth in the U.S. Army's future budgets, the service is headed toward a “collision course,” Army Secretary Ryan McCarthy said March 4 at the McAleese Defense Programs Conference.
The Army has already gone through two-and-a-half years of deep budget scrubs through its “night court” process, which seeks to find funding areas in the budget that don't align with the National Defense Strategy and the service's modernization efforts, and moves those dollars into accounts that meet its priorities.
In the Army's first night court, the chief, secretary, vice chief and undersecretary presided over decisions — big and small, easy and tough — for roughly 600 programs, shifting $33 billion from programs across the fiscal 2020 through FY24 five-year plan.
In FY20, the Army is investing $8.6 billion in modernization efforts and, across the next five years, investing a total of $57 billion, a 137 percent increase from the previous year's five-year plan.
The Army found another roughly 80 programs to scale back or cancel in order to free up funding in FY21, but Army leadership has admitted it's getting harder and harder to find low-hanging fruit in the process.
The Army is now in the process of conducting its night court for FY22 in order to try to find more money to align with its modernization goals. Officials will have to start making choices in terms of restructuring procurement accounts to begin the divestiture of current capabilities in the force to make room for future programs that will enter Low-Rate Initial Production (LRIP) in the comings years.
But that may not be enough if the Army doesn't get an increased top line of 3 to 5 percent in future budget years, McCarthy said.
“What is going to be a challenge for us in ‘22 and ‘23 when [modernization programs] start to mature, we have to make choices in this milestone process, you start buying LRIP tranches,” he said.
At the same time the Army has to grow the force because its current ratio of dwell time to deployment time is 1:1 worldwide, McCarthy said.
“If we don't get 3 to 5 percent growth in the out-years, there is a collision course if you keep growing the force and starting bringing in all these capabilities,” he said.
“Choices will have to be made if we can't increase the top line in ‘22 and ‘23, so will that mean will we have to flatten end-strength? Do we tier the weapon systems that we bring into the formations,” McCarthy asked. “These are the choices that we are talking about, we are looking at and we are going to be prepared to make.”
McCarthy referenced recent comments from Defense Secretary Mark Esper regarding the need to review combatant command demands and asked, “Can we reduce demand worldwide? ... Are we being efficient with every soldier, sailor, airman and marine that we send forward? Can the allies do better? Can we increase their capabilities that do more of the burden that is everything from investing as well as putting more boots forward in the form of deterrence?”
McCarthy told reporters following his speech that if the demand doesn't come down there, "there is no trade space left even if you are going to kill weapon systems that we've had for 40 to 50 years and if you are successful with Congress in getting that done.”
The Army is discussing the numbers it needs with the White House, McCarthy added, but noted that “this is an election year. This is tough. This is going to be a march for the next couple of months.”
But McCarthy stressed, the Army will “continue to grow until we are forced with a really difficult, really another inflection point, if you will, downstream.”
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February 4, 2020 | International, Aerospace
Raytheon chooses Tucson for headquarters of combined missiles/defense unit
Tucson will become the new headquarters for a combined business unit made up of Tucson-based Raytheon Missile Systems and a Massachusetts-based Raytheon business when parent Raytheon Co. and United Technologies Corp. finalize their merger. A Raytheon Missile Systems spokesman confirmed Friday that Tucson will become headquarters for the new Raytheon Missiles & Defense business, which will combine Missile Systems and Raytheon Integrated Defense, now headquartered in Tewksbury, Massachusetts. “We shared with our employees that upon merger close, our consolidated businesses will be named Raytheon Missiles & Defense and Raytheon Intelligence & Space," Raytheon spokesman John Patterson said. "They'll be headquartered in Tucson, Arizona and Arlington, Virginia respectively. We look forward to sharing more information once the merger closes — anticipated early in the second quarter of this year.” Raytheon — Southern Arizona's largest employer — announced in late October that Wes Kremer, president of Raytheon Missile Systems since last March, will become president of the combined missile and integrated defense unit as part of the merged parent company, which will be called Raytheon Technologies Corp. Raytheon Intelligence & Space will be formed from Raytheon's Space and Airborne Systems and Intelligence, Information and Services units, and UTC Mission Systems and Raytheon's Forcepoint cybersecurity unit. Together with two of UTC's current businesses — engine maker Pratt & Whitney and Collins Aerospace — they will form the four main business units of the merged company. But the company said it would not announce the headquarters location of the new business units until the merger was finalized. The so-called "merger of equals" will create an aerospace and defense behemoth with annual revenues of $74 billion, second only to Boeing in the industry. Raytheon and United Technologies shareholders have approved the merger of the two companies, which is also contingent on United Technologies' successful spinoff of its Carrier heating, ventilation and air-conditioning business and its Otis Elevator subsidiary. The deal is also subject to federal anti-trust approval, which is expected after the Defense Department said it had few concerns about the merger. Raytheon is the Tucson region's largest employer with about 13,000 local workers. The company has been working to expand its campus at Tucson International Airport amid a plan to add more than 2,000 jobs. Raytheon also has significant operations at the University of Arizona Tech Park. The company makes many of the nation's front-line defense systems, including the Tomahawk cruise missile and the Standard Missile series of ship-defense and ballistic missile interceptors, and more recently has been working on hypersonic missiles and laser weapons to defeat drones and other threats. https://tucson.com/news/local/raytheon-chooses-tucson-for-headquarters-of-combined-missiles-defense-unit/article_ee884dfe-4489-11ea-8617-6b5185c6107b.html
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September 25, 2018 | International, Aerospace, Naval, Land, C4ISR
Saudi Arabian Military Industries (SAMI) looks to investment in South Africa
Helmoed-Römer Heitman, Pretoria Saudi Arabia is considering investing in the defence industries of South Africa, the chief executive of Saudi Arabian Military Industries (SAMI) confirmed during the African Aerospace and Defence (AAD) exhibition. Dr Andreas Schwer's comments were made following an earlier vist by SAMI representatives to South Africa to discuss investment in national defence organisation Denel. SAMI's interest has centred on munitions, guided weapons, artillery systems, and optronics and the state-owned organisation has indicated that it would consider establishing a research and development centre in South Africa. SAMI's expression of interest coincided with comments from Denel acting chief executive Mike Kgobe who indicated that his company is actively seeking equity partners. https://www.janes.com/article/83303/sami-looks-to-investment-in-south-africa