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April 6, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Raytheon Technologies Corp. begins trading on NYSE

By: Jill Aitoro

WASHINGTON — Less than a year after announcing plans to combine into a $121 billion company, Raytheon and United Technologies are officially no more — replaced by the combined entity Raytheon Technologies Corp., which kicked off trading Friday on the New York Stock Exchange.

Listed under the ticker RTX, Raytheon Technologies began selling at $51 a share. With more than 866 million shares outstanding and a market cap of $74.5 billion, that price is bound to shift in the coming days, weeks and months. To put it in perspective, Raytheon closed Thursday at $122.43 a share, and UTC closed at $91.37 a share.

With the merger, UTC shareholders owned 57 percent of Raytheon Technologies, and UTC will control eight of the 15 board seats. Tom Kennedy will serve as executive chairman, Greg Hayes as CEO and Toby O'Brien as chief financial officer.

Planned divestitures will be completed post merger, though United Technologies did complete the spinoff of HVAC, refrigeration, fire and security solutions company Carrier Global Corp., as well as elevator and escalator manufacturer Otis Worldwide Corp. Both are now trading on the S&P 500.

Amid the stock market fallout from the new coronavirus pandemic, Raytheon saw a bigger drop than most pure-play companies, likely due to the increased exposure to the commercial market that came with the merger. However, that could be short-lived, said Byron Callan of Capital Alpha Partners.

“Raytheon has been the worst-performing stock [during the crisis] because they got tied into commercial aerospace through the merger," he told Defense News in an interview. “But going forward, that may be the most interesting [stock] of all because there will be a degree of balance.”

https://www.defensenews.com/industry/2020/04/03/raytheon-technologies-corp-begins-trading-on-nyse/

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  • DoD Stands Up New Biotech Manufacturing Center: Griffin

    March 5, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    DoD Stands Up New Biotech Manufacturing Center: Griffin

    WASHINGTON: DoD is opening a new manufacturing innovation center dedicated to biotechnology to figure out how to replicate “nature's manufacturing plant” on an industrial scale, Pentagon research and engineering head Mike Griffin says. This is “a key new initiative,” Griffin stressed. The idea, he said at the annual McAleese conference, is “to learn how to do in an industrial way what nature has done for us in so many areas of things that we harvest and mine and use ... now that we are beginning to learn how to manipulate genomes.” Such technology could lead to DoD creating its own fuel using synthetic biology methods, for example. This would be a leap beyond ongoing efforts by DARPA that Sydney has widely reported, designed to protect soldiers against an enemy's biotech weapons. “This is a nascent technical area in the world, and especially in the United States,” Griffin told the audience here. “We want the national security community to be out in front on this.” The new center will be the ninth so-called ManTech center, designed to help overcome the so-called ‘valley of death' between research and commercialization by reducing risks. It will be the second ManTech center with a biotech focus: The first, BioFabUSA in New Hampshire, opened in 2016 to develop next-generation manufacturing techniques for repairing and replacing cells and tissues, which for example could lead to the ability to make new skin for wounded soldiers. Griffin elaborated on several other key areas for his two-year old office. DARPA is investing $459 million in the 2021 budget for AI Next, a “campaign” aimed at automating critical DoD business processes; improving the reliability of Artificial Intelligence systems; and enhancing the security of AI and machine learning tech. Griffin said his office is also “working with the Joint Artificial Intelligence Center (JAIC) under the CIO to bring about what we're calling AI Now: what can we do with AI that can get into the field and bring value to the national security community today, and the next day.” On 5G newtorks, he said that his deputy Lisa Porter is in charge of efforts to “figure out how we can use 5G to press our military advantage” and to protect US military networks. DoD launched that effort in 2019, with a $53 million reprogramming, he said. Congress added $200 million in the 2020 appropriations act, he added, and DoD is asking for $484 million in the 2021 budget. A key to future 5G networks and communications will be spectrum sharing, Griffin stressed. “There is no green field spectrum left,” he said, so DoD will have to figure out how to share spectrum to keep up with both its own demand and deal with pressure from commercial industry for it to give up spectrum. https://breakingdefense.com/2020/03/dod-stands-up-new-biotech-manufacturing-center-griffin

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  • Rafael to demo lighter Trophy protection system on Bradley Fighting Vehicle

    June 12, 2018 | International, Land

    Rafael to demo lighter Trophy protection system on Bradley Fighting Vehicle

    PARIS — Rafael is rapidly driving toward a demonstration of a lighter version of its Trophy active protection system, or APS, on a Bradley Fighting Vehicle this summer as the U.S. Army continues to assess APS systems on its combat vehicles, according to Rafael's head of its land maneuver systems directorate. The Israeli company has already been chosen to field Trophy on four brigade sets of Abrams tanks, and the U.S. Army continues to analyze two other systems on Bradley and on the Stryker combat vehicle. The Army is qualifying Israeli company IMI System's Iron Fist on Bradley and the Virginia-based Artis' Iron Curtain for Stryker. The characterization efforts for both Bradley and Stryker systems are delayed by roughly six to eight months depending on the system. Should one or both of them have insufficient performance or maturity, the Army could choose to adapt another system under evaluation to that platform; or the service could assess another nondevelopmental APS system to fit that same role; or furthermore, it could make a decision to move the system from engineering development activity under a science and technology development effort as part of the Vehicle Protection Systems program of record, according to Army spokeswoman Ashley Givens. There's also fiscal 2018 funding that will be used to evaluate a fourth nondevelopmental APS system via an installation and characterization activity to be identified after a preliminary evaluation phase that will occur late this year, applying lessons learned from efforts to date, Givens added. So Rafael sees a lighter version of Trophy as a promising candidate for other U.S. combat vehicles, which has advantages such as a large amount commonality with Trophy on Abrams, Rafael's Michael L. told Defense News in a June 11 interview at the French defense conference Eurosatory. Michael's last name has been withheld for security reasons. And the timing seems right, according Michael, as the Army will move toward decisions on APS systems for its combat vehicles at some time this year. Rafael has been conducting extensive testing of its lighter and smaller Trophy system, and the company is inviting the U.S. military to attend a major test event in August in Israel to witness the capability on a Bradley, which is the combat vehicle considered the most difficult on which to integrate a system because of the current variant's power limitations. The company would also be capable of integrating the system onto a Stryker, but it has decided — along with its U.S. partner DRS — to focus on Bradley for the time being, Michael said. While the current Trophy system would be too heavy, coming in at 1.8 tons as a full system, the lighter version will weigh just shy of half that, while still retaining “the same method of operations, the same logic, the same interface,” Michael said. Rafael sees the solution not as a simple one, but a high-end one, which it believes would be needed on a platform like Bradley. Israel and other countries are also calling for a lighter APS system that would work on infantry fighting vehicles, and so Rafael sees “a large business opportunity,” according to Michael. “In August we are going to surprise a lot of people who weren't sure,” Michael said, “because when you say shrinking, it's not just making it smaller. You need to make sure that nothing was lost in the process ... we already know that nothing has been lost, but we are testing it to make sure that everything is in order, and I think we have a great solution.” Rafael is also developing and testing a 30mm weapon station outfitted with Trophy as an all-in-one system, according to Michael. The turret can be purchased with or without the Trophy system. One customer ― not Israel or the U.S. ― is buying more than a hundred 30mm weapons stations. The company will complete development of the turret in September and will then begin production for the country in January 2019, Michael said. While the country has yet to commit to adding Trophy as part of a single system, it wanted to prove the system with Trophy. Rafael is eyeing what happens with the ongoing assessment by the U.S. Army to upgun its Strykers with a 30mm cannon. The assessment of the current configuration is expected to wrap up in the summer. Michael said the company has spoke with the Stryker program office in the U.S. to understand what the soldier wants from a 30mm cannon with the intention to fine-tune an offering should the Army decide to assess other 30mm options in order to outfit the rest of its Stryker fleet. And to sweeten the deal, the 30mm cannon would come with an APS system already integrated into the turret, according to Michael. https://www.defensenews.com/digital-show-dailies/eurosatory/2018/06/11/rafael-to-demo-lighter-trophy-protection-system-on-bradley-fighting-vehicle/

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