US Air Force reworks tanker modernization plans, slashes next buy

On the same subject

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  October 2, 2024 | International, Land

  China-Linked CeranaKeeper Targeting Southeast Asia with Data Exfiltration

  CeranaKeeper, a China-linked threat actor, targets Southeast Asia using custom tools to steal data via Dropbox and OneDrive.

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  February 5, 2020 | International, C4ISR

  L3Harris looks to shed as much as 10 percent of company

  By: Jill Aitoro WASHINGTON — L3Harris Technologies could divest up to 10 percent of the company, according to CEO Bill Brown, as its recent decision to sell its airport security business for $1 billion is seen as the first of more transactions expected to refine the firm's portfolio. L3Harris signed a definitive agreement to sell the business unit to Leidos, according to an announcement Tuesday. The transaction is expected to close in mid-2020, barring any issues tied to regulatory approvals. Proceeds from the divestiture are expected to be used to repurchase shares and offset dilution. The deal is part of a larger strategy to reshape the portfolio, focusing on what Brown described on a call with analysts as “high-margin, high-growth, technology-differentiated businesses where we can win and generate attractive returns.” “Although this is the first and largest transaction we're contemplating, our portfolio-shaping process is ongoing and may ultimately result in 8-10 percent of total company revenue being divested over time,” he said. The company's 2019 revenue of $18.1 billion could translate to as much as $1.8 billion in divestitures. Brown told Defense News in June 2019 — one month before the merger of Harris and L3 Technologies was completed — about plans to divest a “pretty significant” piece of the business in the first six months as a single company. “Anytime you put two companies with two portfolios together and you rethink what strategy you want to accomplish, there's going to be some pieces of the portfolio at the back end of the bus,” Brown said at the time. “We have to look at where we want to put our management time, capital, and [research and development] investment. We can't put it on pieces that might not be as strategic." Brown told analysts that the deal would not impact the company's $3 billion free cash flow target in 2022. That in theory would set up L3Harris for a sizable acquisition down the road, should the company choose to go in that direction. A company spokesman could not comment on the specific defense-nondefense split post divestiture, but L3Harris would presumably see a larger slice of the business focusing on defense opportunities. In the 2019 Defense News Top 100 list of the largest defense companies, Harris and L3 reported 72 percent and 81 percent of revenue as defense-focused, respectively. L3Harris reported $18.1 billion in fiscal 2019 revenue. Once the deal with Leidos closes, the airport security businesses' $500 million in annual revenue would transition off the books. That said, L3Harris is forecasting 5-7 percent revenue growth in 2020 — so it won't be a straight reduction. https://www.defensenews.com/industry/2020/02/04/l3harris-looks-to-shed-as-much-as-10-percent-of-company

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  July 5, 2019 | International, Naval

  £85M contract to boost Type-23 capabilities

  The Ministry of Defence has signed an £85 million contract with Rolls-Royce to maintain the engines of the Royal Navy's Type-23 frigate fleet. The contract includes a comprehensive support package to Spey gas turbines, including the overhaul of engines, provision of spares, as well as engineering and safety support. Updates to the turbines are vital as they boost propulsion in the Type-23 Frigates. They are also key pieces of equipment for Anti-Submarine Warfare. The world-beating Type-23 frigate is able to carry out a wide variety of operations, from securing the UK's vital maritime trade routes East of the Suez Canal to safeguarding British interests in the South Atlantic. Defence Minister Stuart Andrew announced the contract at HMNB Devonport where he saw Thursday War training which prepares the Royal Navy for war-fighting, humanitarian relief and emergency situations through a variety of drills and exercises. Defence Minister Stuart Andrew said: This £85m contract demonstrates the UK's commitment to modernisation through the maintenance of our formidable Type-23s. This work continues the British tradition of supporting our closest allies and solidifying our global position as world-leaders in advanced maritime technology and development. The contract will see Rolls-Royce overhaul thirty Type-23 engines from the UK and NATO partners Belgium, Portugal and the Netherlands. The contract is expected to deliver a £35 million increase in savings to the MOD over the next eight years, by incentivising Rolls-Royce to improve repair schemes, minimise unnecessary work and procure spares at a lower cost. This will result in shorter, less expensive overhauls. Rolls-Royce will project manage the support contract, while the main overhaul and repair work will be carried out by RWG based in Aberdeen, supporting up to 25 UK jobs across both companies. Scotland benefits from MOD expenditure of £300 per person each year and a huge investment in local industry and commerce of £1.6 billion. UK Defence also supports over 10,000 industry jobs in Scotland and the nation is renowned for building the world's finest warships including the UK's new aircraft carriers and the Royal Navy's state-of-the-art Type-26 frigates. Defence Equipment and Support Chief of Materiel Ships Vice Admiral Chris Gardner said: The Type 23 frigate is central to Royal Navy operations around the world and keeping it at the forefront of operations is critical. This contract will ensure Rolls-Royce continues to innovate through improving repair schemes, minimising unnecessary work and procuring spares cheaper. This will result in shorter, less expensive overhauls, which is good news for the Royal Navy and good news for the tax payer. Matt Nadin, Director Naval Fleet Services at Rolls-Royce said: This vital support contract builds upon our Rolls-Royce target to achieve and sustain increased Spey engine availability to the Royal Navy and their NATO partners, The Netherlands, Belgium and Portugal. This contract highlights our successful collaboration with the UK Ministry of Defence to provide the technical support and repair activities required to not only keep these engines in-service with the Royal Navy and their NATO partners, but also to deliver increased value for money. https://www.gov.uk/government/news/85m-contract-to-boost-type-23-capabilities