Boeing Delivers 77th 777 to Singapore Airlines

Boeing Delivers 77th 777 to Singapore Airlines

EVERETT, Wash., Jan. 30, 2009 -- The Boeing Company [NYSE: BA] and Singapore Airlines reached an historic milestone today with the delivery of the airline's 77th 777, which also is its 19th 777-300ER.

Singapore Airlines began its relationship with the Boeing 777 in December 1995, when the airline initially ordered 28 of what has become the most popular intermediate twin-aisle airplane in the world, with a market share of more than 60 percent. The airplane delivered today increases Singapore Airlines' fleet of Boeing airplanes to 91, with an additional 20 787-9 Dreamliners on order.
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Boeing (NYSE:BA), 777 Airliner

Production Resumes on Boeing 787 Dreamliners with Fifth Flight-Test Airplane

Production Resumes on Boeing 787 Dreamliners with Fifth Flight-Test Airplane

EVERETT, Wash., Jan. 30, 2009 -- Production of Boeing [NYSE: BA] 787 Dreamliners resumed yesterday with the join of the fifth airplane designated for flight test.
This airplane, designated ZA005, is the first to be powered with General Electric GEnx engines. The major assemblies were loaded in final body join over the past several days. The fuselage and wing joins occur simultaneously.
"This airplane signifies our return to a steady production rhythm," said Jack Jones, vice president of 787 Final Assembly and Change Incorporation.
"Sections are arriving in Everett at the completion levels committed by our partners and close to what is expected for mature production," Jones said. "The substantial progress made by our partners streamlines the assembly process, which is essential as we ramp up production."
Five of the six airplanes designated for flight test are now in varying stages of production. Power was restored earlier this week to the first flight-test airplane, ZA001, and production testing has resumed as the airplane prepares for first flight in the second quarter. Rolls-Royce engines are hung on ZA002, in the fourth and final production position in the factory. The third and fourth flight-test airplanes, ZA003 and ZA004, are in the third and second production positions, respectively.
Fastener rework is done on ZA001, nearly complete on ZA002 and progressing well on the third and fourth airplanes, Jones said. "We have applied the resources necessary to complete all the outstanding work on these airplanes and keep the production line moving forward."
Assemblies for the final flight-test airplane, ZA006, are in production at partner sites worldwide. In all, assemblies for 30 Dreamliners are in production at this time.
The 787 Dreamliner has orders for 895 airplanes from 58 airlines.
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Boeing (NYSE:BA), 787 Dreamliner

MILITARY BASE REALIGNMENTS AND CLOSURES: DOD Faces Challenges in Implementing Recommendations on Time and Is Not Consistently Updating Savings Estimates

MILITARY BASE REALIGNMENTS AND CLOSURES: DOD Faces Challenges in Implementing Recommendations on Time and Is Not Consistently Updating Savings Estimates
January 30, 2009

Highlights of GAO-09-217, a report to congressional committees

The 2005 Base Realignment and Closure (BRAC) round is the biggest, most complex, and costliest BRAC round ever. In addition to base closures, many recommendations involve realignments, such as returning forces to the United States from bases overseas and creating joint bases. However, anticipated savings remained an important consideration in justifying the need for the 2005 BRAC round.

The House report on the National Defense Authorization Act for Fiscal Year 2008 directed GAO to monitor BRAC implementation. Therefore, GAO assessed (1) challenges that might affect timely completion of recommendations, (2) any changes in DOD’s reported cost and savings estimates since fiscal year 2008, and (3) the potential for estimates to continue to change. To address these objectives, GAO reviewed documentation and interviewed officials in the Office of the Secretary of Defense (OSD), the services’ BRAC offices, and the Army Corps of Engineers; visited installations implementing some of the more costly realignments or closures; and analyzed BRAC budget data for fiscal years 2008 and 2009.

What GAO Recommends
GAO recommends that OSD modify its recently issued guidance on BRAC implementation status and require the services to update BRAC savings estimates. DOD concurred with GAO’s recommendations.

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Department of Defense (DoD), GAO

Rosyth prepares for Royal Navy supercarriers

Rosyth prepares for Royal Navy supercarriers
An Equipment and Logistics news article
30 January, 2009

The Royal Navy's two new aircraft carriers will be assembled at Rosyth on Scotland's east coast in the next decade. Work is already well underway to make sure the dockyard is ready. Report by Steve Moore.

If you see huge sections of warship on barges inching their way up the UK coast in a few years' time, chances are they are on their way to Rosyth. Work is underway to prepare the Firth of Forth yard's No 1 dock - originally built in 1916 - to accommodate the two massive 65,000 tonne aicraft carriers to be in service in the next decade.

The yard contains the largest non-tidal basin for ship repair in the UK and Babcock Marine is working to increase the capacity of the dock, as well as widening the entrance to allow entry of the parts and departure of the 280-metre long, 56-metre high carriers. A £15m 120-metre span crane - nicknamed Goliath - is also being installed to straddle the dock.

Up to 150 staff from BAM Nuttall are doing the engineering in a £35m contract with Babcock on behalf of the Aircraft Carrier Alliance, which also includes BVT Surface Fleet, Thales UK, BAE Systems and MOD's Defence Equipment and Support (DE&S) as both participant and client. There are workers from around 50 other sub-contractors also working on site.

Work on No 1 dock began last March and is set to be completed by summer 2010:

"The project is in full swing and on schedule," said Sean Donaldson, Babcock's carrier project director at Rosyth. "The first parts of the first carrier will arrive in the summer of 2011, so we are not going to be short of things to do in the next few years."

Staff at Rosyth have been preparing for the work for at least two years:

"The work presents some challenges because it is related to old structures and, as the majority is below ground and in a marine environment, the project has significant risks," said Mr Donaldson. "We have spent two years on site investigations and de-risking activity to get to this stage. But working with the MOD we knew that investing the money up front would save us much in the long term."

The first carrier should be in dock for between 18 and 24 months. Assembly of the second will begin soon afterwards. It is a complex logistical process:

"It is a joint team doing the integration, led by BVT, to make sure all the pieces of the puzzle do fit together," said Mr Donaldson. "It is a very challenging timeline but it is in all our interests to make sure everyone comes together. We are all incentivised to work together to complete the project.

"We were refitting nuclear submarines at Rosyth until 2001 and they were massively complex projects. We have also refitted each of the current aircraft carriers. But we are certainly not complacent. We have had a team in place, three years ahead, to make sure we can complete this task."

"The Goliath crane will rest on two uprights either side of the dock and will be a towering icon of engineering endeavour and industrial capability."
Director Capital Ships, Tony Graham

The dock is long enough to accommodate each vessel but its cross- section is unsuitable for modern warship building, the ship's hull being flat-bottomed rather than the traditional V-shape. Huge granite steps, known as altars, that stick out from the side of the dock are being cut back to the width of the top tier. The dock floor will be nine metres wider when they have been removed.

Work is now underway to widen the main entrance to the Rosyth basin from the Firth of Forth. The 38-metre-wide entrance features a sliding gate to hold the tidal water back but is soon to be increased to 42 metres. A 25-metre-deep wall will be installed behind the existing entrance wall to allow excavation work, with the void filled with concrete. This will allow the existing entrance wall to be demolished before the final face of the new entrance is installed. Goliath is due to arrive in August 2010 with handover soon after.

Built by Shanghai Zhenhua Port Machinery, the 68-metre gantry crane to straddle the dock will be able to lift up to 1,000 tonnes from three hooks, two suspended from an upper trolley and one from a central, lower trolley which will have a capacity of 500 tonnes.

The individual capacity of each of the three hooks provides valuable flexibility in lifting awkward loads and will allow units or blocks to be turned over. Nearly 90 reinforced concrete bored piles are being socketed three metres into the underlying rock on the eastern side of the dock as foundations for the crane, with further piles driven up to seven metres into rock on the western side.

The crane will arrive partially erected through the newly-widened dockyard entrance and will be 'skidded' from ship to shore onto the crane rails. DE&S visitors to the dockyard to see the progress Babcock are making have included the Director Capital Ships, Tony Graham, who saw the works in the autumn:

"This is an exciting time for the CVF [future carrier] project as, around the UK, we make final preparations for cutting of steel on the ships in early 2009," he said. "For stability, the Goliath crane will rest on two uprights either side of the dock and will be a towering icon of engineering endeavour and industrial capability.

"In this sense, it parallels an ever-ready and world-class carrier strike capability, resting as it does on the two iconic ships - HMS Queen Elizabeth and HMS Prince of Wales - lifting the Royal Navy into a new modern age."

Dam marks big milestone

A major milestone has already passed at Rosyth's No 1 dock with the completion of a cofferdam, a huge enclosure of steel and rock-fill extending 14 metres from the basin floor to dockside level. The cofferdam creates a dry working environment where the civil contractor can work.

Five circular steel 18.5-metre-diameter cells have been built to sit on the bed of the main basin and then filled in with thousands of tonnes of imported rock. It is the biggest cofferdam of this type built for many years:

"Modifying a dock in a marine environment like this is not easy," said Babcock civil engineer Mike Murray. "The design and installation of the temporary works needed to hold back the water during the construction period can be very challenging.

"The No 1 dock cofferdam alone weighs more than 50,000 tonnes and has to resist around 8,000 tonnes of thrust imposed by the retained water in the basin. It has to be buildable and sealable. Sealing is the craft bit and the difficulty is making the seal at the basin bed.

"We are on time. The No 1 dock cofferdam was constructed in six weeks and is working well," he added.

When work on No 1 dock has finished the cofferdam will be removed and installed at the basin entrance along with another bespoke structure on the river-side to allow the entrance to be widened.

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Babcock International Group PLC (London: BAB), Future Aircraft Carrier (CVF), Royal Navy, UK MoD

SECDEF Announces Flag Officer Nomination / Assignments

NNS090130-13. SECDEF Announces Flag Officer Nomination / Assignments
January 30, 2009

From the Department of Defense

WASHINGTON (NNS) -- Secretary of Defense Robert M. Gates announced Jan. 30 that the President has made the following flag officer nomination:

Navy Capt Brian P. Monahan has been nominated for appointment to the grade of rear admiral and assignment as attending physician to Congress. Monahan is currently serving as deputy attending physician to Congress.

-USN-

NNS090130-04. CNO Announces Flag Officer Assignments

WASHINGTON (NNS) -- Chief of Naval Operations Adm. Gary Roughead announced Jan. 30 the following flag officer assignments:

Rear Adm. (lower half) Thomas H. Copeman III is being assigned as commander, Joint Task Force Guantanamo, U.S. Southern Command, Guantanamo, Cuba. Copeman is currently serving as deputy chief of staff for operations, training and readiness, N3/N7, U.S. Pacific Fleet, Pearl Harbor, Hawaii.

Rear Adm. (lower half) Earl L. Gay is being assigned as commander, Expeditionary Strike Group 3, San Diego, Calif. Gay is currently serving as deputy chairman, Armed Forces Inaugural Committee, Washington, D.C.

Rear Adm. Ann D. Gilbride has been appointed the first director of the National Maritime Intelligence Center, Washington, D.C. Gilbride was most recently assigned as the associate director of Naval Intelligence for Reserve Affairs, N2R, Office of the Chief of Naval Operations, Washington, D.C.

Rear Adm. Jeffrey A. Lemmons has been assigned as director for International Engagement, N52, Office of the Chief of Naval Operations, Washington, D.C. Lemmons was most recently assigned as the reserve assistant deputy chief of Naval Operations for integration of capabilities and resources, N8R, Office of the Chief of Naval Operations, Washington, D.C.

Rear Adm. Gregory Timberlake has been assigned as director, Interagency Program Office, Department of Defense/Department of Veterans Affairs, Washington, D.C. Timberlake was most recently assigned as command surgeon, U.S. Joint Forces Command, Norfolk, Va.

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Appointments, US Navy (USN)

House Armed Services Committee: Skelton Troubled By Inspector General’s Findings On Reconstruction Efforts in Afghanistan

House Armed Services Committee: Skelton Troubled By Inspector General’s Findings On Reconstruction Efforts in Afghanistan
Ike Skelton, Chairman
For Immediate Release: January 30, 2009

Washington, DC – House Armed Services Committee Chairman Ike Skelton (D-MO) released the following statement on the Special Inspector General for Afghanistan Reconstruction’s (SIGAR) Quarterly Report to the United States Congress:

“I’m encouraged by the progress made by the Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR) in building a strong capacity for oversight since its first quarterly report. Efforts to eliminate waste, fraud, and abuse in Afghanistan reconstruction programs are vital to helping Afghans build security and stability within the country’s borders and throughout the region.

“At the same time, I’m troubled by many of the report’s findings. The report describes fragmented reconstruction efforts and incoherent strategies with ‘major weaknesses’. Moreover, the report highlights the failure of U.S. agencies to spend a significant amount of the funds provided for Afghanistan reconstruction. Reconstruction is a critical part of the security equation in Afghanistan, and Congress must work closely with SIGAR and the new administration to ensure that funds targeted for development in Afghanistan are used wisely.”

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SIGAR’s Quarterly Report to the United States Congress is available online.

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Afghanistan, HASC (House Armed Services Committee)

NAVSEA and PEOs Reach Out to Small Businesses

NNS090129-17. NAVSEA and PEOs Reach Out to Small Businesses

From Program Executive Office Littoral and Mine Warfare Public Affairs

WASHINGTON (NNS) -- The U.S. Navy Program Executive Office for Submarines (PEO Subs) and the Program Executive Office for Littoral and Mine Warfare (PEO LMW) hosted a conference for Hispanic-owned small businesses (HOSB) Jan. 27-29 at California State University, Los Angeles.

"The purpose of this conference is to develop partnerships so NAVSEA can better harness the power of small businesses in our efforts to keep our Navy number one in the world," said Vice Adm. Kevin McCoy, commander, Naval Sea Systems (NAVSEA) Command.

The conference also provided an unprecedented forum where HOSB owners could connect directly with senior Navy and industry leaders to learn, collaborate and explore ways that the Navy can benefit from the vast product and service offerings of the nation's HOSBs.

"We're very proud that during the past 10 years PEO SUBS has spent more than $1 billion in small business contracts," said PEO SUBS Executive Director Jack Evans.

Conference participants participated in informational sessions to learn, collaborate, and explore ways in which they could offer their products and services to the U.S. Navy. They also had unique one-on-one networking opportunities to establish relationships with prime contractors and other small businesses as well as with senior Navy officials. Most importantly they learned from other small business owners who have succeeded in supporting the U.S. Navy on how to successfully compete for a small business initiative proposal.

"We need to embrace the small business partner and encourage them. At PEO LMW small business is big business," said Victor Gavin, executive director of PEO LMW.

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Naval Systems, NAVSEA

House Armed Services Committee: Skelton on the Quadrennial Roles and Missions Review Report

House Armed Services Committee: Skelton on the Quadrennial Roles and Missions Review Report

Ike Skelton, Chairman
For Immediate Release: January 29, 2009

Washington, DC – House Armed Services Committee Chairman Ike Skelton (D-MO) released a statement on the Department of Defense’s Quadrennial Roles and Missions Review Report, which was required by the Fiscal Year 2008 National Defense Authorization Act:

“The Quadrennial Roles and Missions Review Report demonstrates that the Department of Defense’s understanding of its mission and the core competencies required to achieve it has expanded quite substantially since the attacks of 9/11. The scope of the mission the Department is preparing to tackle is daunting and will require careful scrutiny.

“This report represents an advance by organizing in one place a host of ideas about new or newly emphasized missions for the Department – from the need to provide support to civil authorities, to cyber warfare, to training and mentoring foreign security forces. It raises significant issues about the appropriate role of the Department in these areas that will be heavily debated in the national security community in the coming years.

“At the same time, this report shows the Department still has a lot of work ahead to reform its organization, budgets, and processes to execute this mission. The report makes only a small contribution to the difficult task of challenging the allocation of treasured turf and changing deeply held cultures within the Department which will be required to actually fulfill such a far reaching mission set.

“I am reminded that the last time this task was seriously tackled, in the immediate aftermath of World War II, it took several years and the personal intervention of President Harry Truman to reach a workable consensus. I very much appreciate the work of Admiral Mullen and Secretary Gates in kicking off a similar cycle of reevaluation of these issues in this report. As Congress anticipated when it established this review as a continuing requirement every four years, there remains much work to do.”

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The Quadrennial Roles and Missions Review Report is available online.

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Department of Defense (DoD), HASC (House Armed Services Committee)

Boeing Receives STOC II Training Contract From US Army

Boeing Receives STOC II Training Contract From US Army

ST. LOUIS, Jan. 29, 2009 -- The Boeing Company [NYSE: BA] today announced it has received the U.S. Army Program Executive Office for Simulation, Training and Instrumentation's Omnibus Contract II (STOC
II).

STOC II is a multiple-award, indefinite delivery/indefinite quantity (ID/IQ) contract with a $17.5 billion cap over as many as 10 years. As awardees, Boeing and wholly owned subsidiary Tapestry Solutions are eligible to bid over the life of the program on a variety of delivery and task orders, depending on the Army's needs.

Boeing Integrated Defense Systems' Training Systems and Services business unit will manage the STOC II program from St. Louis. Tapestry Solutions will manage its portion of the program from its facility in San Diego, focusing on simulation and exercise support.
"This contract allows us to provide a wide array of services for the warfighter, as well as expand further within the training and simulation markets," said Training Systems and Services Vice President Mark McGraw. "Boeing is uniquely qualified to respond to the quick turnaround time required by ID/IQ contracts."

Boeing uses a Streamlined Management and Response Tool to reduce response time on ID/IQ requests by quickly matching contract requirements to a database of suppliers. The company also can provide the high levels of technology and integration required to respond to all areas of STOC II: Boeing will use its Contractor Integrated Technical Information Service to provide a common, secure and controlled process of sharing data, applications and Web sites with external customers, suppliers and partners.

"Boeing's management organization is key to keeping costs down while enhancing our 'performance to plan,'" said McGraw. "We strive for continuous improvement, and our quality-management systems will help us meet the customer's schedule and cost requirements."
Boeing will work in close partnership with the Army Program Executive Office to provide management and oversight of all delivery and task orders awarded to the company within the STOC II environment.
A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Integrated Defense Systems is a $32 billion business with 70,000 employees worldwide.
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Boeing (NYSE:BA), Contract $1.5bn+, Contract Win, US Army

Boeing Chief Financial Officer Speaking at Cowen Conference

Boeing Chief Financial Officer Speaking at Cowen Conference

CHICAGO, Jan. 29, 2009 -- Boeing [NYSE: BA] Corporate President and Chief Financial Officer James Bell will speak at Cowen and Co.'s 30th Annual Aerospace/Defense Conference on Thursday, Feb. 5, at approximately 11:10 a.m. Eastern Time.

Bell's remarks will be webcast live. Individuals should check the website prior to the event to ensure their computers are configured for the audio stream.
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Boeing (NYSE:BA)

Textron Reports Fourth Quarter and Full-Year Financial Results

Textron Reports Fourth Quarter and Full-Year Financial Results

Providence, RI - January 29, 2009 - Textron Inc. (NYSE: TXT) today reported fourth quarter 2008 income from continuing operations, excluding special charges, of $0.40 per share, consistent with its December 22, 2008 press release. Revenues in the quarter were $3.6 billion, up slightly compared to the fourth quarter of 2007.

On a GAAP basis, Textron reported a loss from continuing operations for the quarter of $348 million or $1.44 per share, as compared to fourth quarter 2007 income from continuing operations of $247 million or $0.97 per share. Including discontinued operations, Textron’s fourth quarter 2008 net loss was $209 million or $0.87 per share, compared with fourth quarter 2007 net income of $256 million or $1.00 per share.

On December 22, 2008, the company announced a plan to exit all non-captive financial business. As a consequence, in the quarter, Textron recorded a number of special charges including a $293 million pre-tax mark-to-market adjustment against finance receivables held for sale, a $169 million pre-tax impairment charge to eliminate Textron Financial Corporation’s (TFC) goodwill and a $31 million tax charge related to the change in investment status of TFC’s Canadian subsidiary. Textron also recorded a pre-tax restructuring charge of $64 million related to cost-saving initiatives across the enterprise.

For the full year, Textron’s Manufacturing group generated net cash from operating activities before capital contributions to and net dividends from TFC of $899 million and incurred capital expenditures of $542 million.

TFC paid Textron net dividends of $142 million during the year. During the fourth quarter Textron made a $625 million capital contribution into TFC to maintain the earnings to fixed charge coverage ratio under the support agreement between Textron and TFC. Cash flow from operations for the Manufacturing group under a GAAP basis totaled $416 million as compare to $1.2 billion for 2007.

“Economic conditions continued to weaken during the fourth quarter, significantly impacting our Industrial and TFC businesses,” said Textron Chairman and CEO Lewis B. Campbell. “However, for the year, we had strong performance at Bell, Cessna and Textron Systems,” Campbell added.

Combined backlog at Cessna, Bell and Textron Systems was $23.2 billion at the end of the fourth quarter, up $4.4 billion from the end of last year.

Non-GAAP Measures

Income from continuing operations, excluding special charges, and net cash provided by operating activities for the Manufacturing group before capital contribution and net dividends from TFC are Non-GAAP measures that are defined in the attachments to this release.

Outlook

Looking to 2009, the company expects the economy will continue to impact results at TFC and result in lower volumes at Cessna and Industrial. On this basis, the company estimates 2009 revenues will be approximately $12.5 billion, free cash flow from continuing operations of the manufacturing group will be about $450 million and earnings per share from continuing operations will be in the range of $1.00 to $1.50, excluding expected pre-tax restructuring charges of about $40 million.

Campbell continued, “Our priorities this year are clear – maximize cash flow and operating performance in our manufacturing businesses and aggressively convert finance receivables at TFC to cash. We’re aligning production to match expected lower commercial demand, reducing non-essential capital spending, freezing salaries, curtailing most discretionary spending, including reductions in non-critical product development, and reducing working capital.”

“We believe that we are taking the right actions and will emerge from this recession leaner and more focused. We fully expect that growth in our strong defense businesses will sustain us over the next several years. After world economies recover, this growth will be augmented by expansion at Cessna as well as the remainder of our commercial businesses,” Campbell concluded.

Segment Results

Cessna

Cessna’s fourth quarter revenues and segment profit decreased $64 million and $90 million, respectively, compared with the fourth quarter of 2007. Revenues decreased in spite of the sale of more jet units, primarily reflecting a higher proportion of Mustang sales. This decrease was partially offset by higher pricing and the benefit from the acquisition of the Columbia single engine product lines.

Segment profit decreased due to used aircraft valuation adjustments, the impact from lower revenue mix, higher product development expense and overhead costs.

Cessna backlog at the end of the fourth quarter was $14.5 billion, up $1.9 billion from the end of last year.

Bell

Bell’s revenues and segment profit increased $98 million and $40 million in the fourth quarter. The increase in revenues was due to higher volume and pricing. The increased volume relates to higher V-22 revenues, partially offset by lower commercial helicopter revenues and the absence of Armed Reconnaissance Helicopter revenues.

Segment profit increased due to favorable cost performance, higher volume and pricing in excess of inflation, partially offset by unfavorable mix. The cost performance reflects the non-recurrence of program charges recorded in the fourth quarter of 2007 in both military and commercial programs, and higher royalty income.

Bell backlog at the end of the fourth quarter was $6.2 billion, up $2.4 billion from the end of last year.

Textron Systems (formerly Defense & Intelligence)

Revenues and segment profit for Textron Systems increased $180 million and $37 million, respectively. The increase in revenues is due to the benefit of our acquired AAI business and higher volume for ASV spares and logistics, Intelligent Battlefield Systems and Sensor Fused Weapons.

Segment profit increased due to favorable cost performance, higher volume and the benefit from the acquisition.

Fourth quarter ending backlog at Textron Systems was $2.5 billion, compared to $2.4 billion at the end of 2007.

Industrial

Revenues and segment profit decreased $135 million and $59 million, respectively, in the fourth quarter of 2008. Revenues decreased due to lower volumes and an unfavorable foreign exchange impact, partially offset by higher pricing and the favorable impact of the Paladin Tools acquisition at Greenlee.

Segment profit decreased due to the impact of the lower volume and mix, inflation in excess of higher pricing, and the unfavorable foreign exchange rate impact.

Finance

Finance revenues decreased $64 million in the fourth quarter due to lower market interest rates, and lower securitization gains which were partially offset by the benefit of interest rate floors.

Segment profit decreased $171 million as a result of increased loan loss provisions, higher borrowing costs and lower securitization gains, partially offset by the benefit of interest rate floors.

Increased loan loss provisions reflected weakening general market conditions, declining collateral values and the lack of liquidity available to our borrowers and their customers. These provisions also incorporated estimates for an increase in expected credit losses resulting from TFC’s exit plan.

Sixty-day plus delinquencies increased to 2.59% from 1.06% at the end of the third quarter. Nonperforming assets increased to 4.72% compared to 2.67% in the third quarter.

Managed receivables ended the year at $10.8 billion, versus $11.4 billion at the end of the third quarter.

Conference Call Information

Textron will host a conference call today, January 29, 2009 at 9:00 a.m., Eastern to discuss its results and outlook. The call will be available via webcast at www.textron.com or by direct dial at (800) 288-8975 in the U.S. or (612) 332-0418 outside of the U.S. (request the Textron Earnings Call).

In addition, the call will be recorded and available for playback beginning at 12:30 p.m. Eastern time on Thursday, January 29, 2009 by dialing (320) 365-3844; Access Code: 896349.

A package containing key data that will be covered on today’s call can be found in the Investor Relations section of the company’s website at www.textron.com.

About Textron Inc.
Textron Inc. is a $14.2 billion multi-industry company operating in 28 countries with approximately 42,000 employees. The company leverages its global network of aircraft, defense and intelligence, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, Textron Systems and Textron Financial Corporation. More information is available at www.textron.com.

Forward-looking Information

Certain statements in this press release and other oral and written statements made by us from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters, or project revenues, income, returns or other financial measures. These forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the risk factors contained in our most recent Quarterly Report on Form 10-Q and the following: (a) changes in worldwide economic and political conditions that impact demand for our products, interest rates and foreign exchange rates; (b) the interruption of production at our facilities or our customers or suppliers; (c) performance issues with key suppliers, subcontractors and business partners; (d) our ability to perform as anticipated and to control costs under contracts with the U.S. Government; (e) the U.S. Government’s ability to unilaterally modify or terminate its contracts with us for the U.S. Government’s convenience or for our failure to perform, to change applicable procurement and accounting policies, and, under certain circumstances, to suspend or debar us as a contractor eligible to receive future contract awards; (f) changing priorities or reductions in the U.S. Government defense budget, including those related to Operation Iraqi Freedom, Operation Enduring Freedom and the Global War on Terrorism; (g) changes in national or international funding priorities, U.S. and foreign military budget constraints and determinations, and government policies on the export and import of military and commercial products; (h) legislative or regulatory actions impacting defense operations; (i) the ability to control costs and successful implementation of various cost-reduction programs, including the enterprise-wide restructuring program; (j) the timing of new product launches and certifications of new aircraft products; (k) the occurrence of slowdowns or downturns in customer markets in which our products are sold or supplied or where Textron Financial Corporation (TFC) offers financing; (l) changes in aircraft delivery schedules or cancellation of orders; (m) the impact of changes in tax legislation; (n) the extent to which we are able to pass raw material price increases through to customers or offset such price increases by reducing other costs; (o) our ability to offset, through cost reductions, pricing pressure brought by original equipment manufacturer customers; (p) our ability to realize full value of receivables; (q) the availability and cost of insurance; (r) increases in pension expenses and other postretirement employee costs; (s) TFC’s ability to maintain portfolio credit quality and certain minimum levels of financial performance required under its committed credit facilities and under Textron’s support agreement with TFC; (t) TFC’s access to financing, including securitizations, at competitive rates; (u) our ability to successfully exit from TFC’s commercial finance business, other than the captive finance business, including effecting an orderly liquidation or sale of certain TFC portfolios and businesses; (v) uncertainty in estimating market value of TFC’s receivables held for sale and reserves for TFC’s receivables to be retained; (w) uncertainty in estimating contingent liabilities and establishing reserves to address such contingencies; (x) risks and uncertainties related to acquisitions and dispositions, including difficulties or unanticipated expenses in connection with the consummation of acquisitions or dispositions, the disruption of current plans and operations, or the failure to achieve anticipated synergies and opportunities; (y) the efficacy of research and development investments to develop new products; (z) the launching of significant new products or programs which could result in unanticipated expenses; (aa) bankruptcy or other financial problems at major suppliers or customers that could cause disruptions in our supply chain or difficulty in collecting amounts owed by such customers; and (bb) continued volatility and further deterioration of the capital markets.

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Financial Results, Textron (NYSE:TXT)

UK versus Defence lobbying activity: A tale of two opposites

The UK media has been angsting about the role of peers as consultants recently and the possibility that people might actually be able to exercise an opportunity to speak with, inform and possibly lobby the odd legislator.

The Wall Street Journal today ("Defense industry lobbies for piece of a a smaller pie") published the results of the latest data on lobbying spend submitted to Congress by the biggest US contractors. The league table for 2008 reads;

Northrop Grumman (NYSE:NOC) $20.6m ($10.9m in 2007)

Boeing (NYSE:BA) $16.6m ($10.6m in 2007)

Lockheed Martin (NYSE:LMT) $15.4m ($10m in 2007)

General Dynamics (NYSE:GD) $8.5m ($7m in 2007)

Raytheon (NYSE:RTN) $6.0m ($6.5m in 2007)

BAE Systems (London:BA) $4.2m ($1.0m in 2007)

* For all the vilification of BAE Systems lobbying efforts in the UK it seems quite apparent that they are having to play 'catch-up' in the North American market.

* Northrop Grumman & Boeing efforts are probably increased due to the intense dogfight over the aerial tanker program in 2008.

* Lockheed Martin is probably focused on the F-22 production line and ensuring Joint Strike Fighter (JSF) - the single largest new procurement program in the US defense budget can make it through a change of Administration unscathed...

VT Group 's Prisoners dilemma

Sylvia Pfeifer of the Financial Times wrote three articles concerning the decision by defence support services company VT Group (London:VTG) to divest its shipbuilding arm, currently in a joint venture with BAE Systems (London:BA) through the use of a put option on its disposal to the largest defence contractor in the United Kingdom (see "VT to double in size after strategy shift" and "VT signals sale of shipbuilding arm" and "VT sells shipbuilding business" on January 28th and 29th 2009).

VT Group is in a strategic bind.  On the one hand the exchange rate challenges of a US operation at ($2:£1) have reduced.   Whilst the sale of the shipbuilding business provides a healthy cash injection the current market makes lending for M&A challenging and VT Group a possible acquisition target.

The business mix makes the business quite attractive to players such as Serco, whose defence business has languished over the past few years and Babcock International Group (for whom in particular the business is a mirror image of its own).  It would seem an unlikely target for a major contractor due to the plethora of non-defence activity which would be hard to absorb.

in my own opinion the best outcome for VT Group would be a merger with a support services business of scale and cultural fit.  For VT Group to pursue a series of small acquisitions which would push it to above £1 billion in annual turnover is arguably an inefficient use of capital.  Still, acquisitions to use up the cashpile could be a positive spur for someone sensible to make a merger approach.

Harriers power up with new contract

Harriers power up with new contract

An Equipment and Logistics news article
28 Jan 09
RAF and Royal Navy Harrier 'jump-jets' are set to benefit from a new £198m support contract signed with Rolls-Royce to support the aircraft's Pegasus engine over the next ten years.

The Rolls-Royce Pegasus engine provides the Harrier with its unique Short Takeoff and Vertical Landing capability and the new contract will guarantee its availability to the front line, as well as providing all aspects of technical support.

Minister for Defence Equipment and Support, Quentin Davies, said:

"Today's £198m contract will ensure that the Harrier jump-jets continue to demonstrate their power and versatility in support of ground forces in Afghanistan or flying from our aircraft carriers. The Rolls-Royce Pegasus engine gives the Harrier its unique Short Takeoff and Vertical Landing capability.

"This contract follows in the footsteps of other fast-jet support contracts in offering improved availability of aircraft whenever and wherever they are needed."

Rolls-Royce Defence Aerospace will be managing the new contract from its site at Bristol, with some work being carried out at RAF Wittering and the main repair and overhaul being carried out at the Rolls-Royce site at Ansty in Leicestershire.

Defence Equipment and Support Harrier Project Team Leader, Group Captain Andy Ebdon, said:

"Awarding this contract to Rolls-Royce for complete through-life support of Pegasus is a very significant achievement. It not only assures affordable engine availability, but also incentivises both industry and the MOD to actively work together to improve efficiency. The end effect is better value for money and improved support performance for the front line."

The aircraft is operated in the close air support role by the Royal Air Force and Royal Navy under the umbrella of Joint Force Harrier.

Harrier GR9A aircraft, with upgraded Pegasus engines to deal better with extreme conditions, have been operating from Kandahar Airbase in Afghanistan for some time in support of NATO forces conducting operations against the Taliban.

In the UK Harriers are based at RAF Cottesmore in Rutland and RAF Wittering in Cambridgeshire, as well as operating as required from Royal Navy aircraft carriers.

Technorati Tags:
Contract $200m+, Contract Win, Royal Air Force (RAF), Royal Navy, Rolls Royce (London:RR), Harrier

VT Group Interim Management Statement and Update on BVT Surface Fleet

VT Group Interim Management Statement and Update on BVT Surface Fleet
28 January 2009

Defence and support services company VT Group issues the following Interim Management Statement, covering the Group's performance for the period since September 30, 2008.

BVT Surface Fleet (“BVT”)
As set out in the circular to shareholders dated 11 June 2008, the Group has the right from 1 July 2009 to put its 45% shareholding in BVT to its joint venture partner, BAE Systems (the “Put Option”) for a minimum exit price of £380m, subject to specific adjustments downwards in respect of pension liabilities, notional interest on BAE loans to BVT and certain other items set out in the circular. In addition on completion of the Put Option, the deferred consideration (plus interest) in respect of VT Group’s purchase of BAE Systems’ 50% shareholding in Flagship becomes payable.

VT Group has decided to exercise the Put Option which requires UK Ministry of Defence approval in addition to the approval of VT Group’s shareholders and other regulatory bodies. VT Group has been advised by the UK Ministry of Defence that it has approved the exercise of the Put Option subject to finalising the details of the 15 year Terms of Business Agreement (ToBA). VT Group therefore expects to be in a position to exercise its Put Option by 1 July 2009.

The exit from the joint venture will enable VT to concentrate on further expansion of its services businesses.

The BVT board is in the process of finalising the review of export contracts which was in progress at the time of our half year announcement. The result of this cost to complete review, following the integration of these contracts into the new BVT business, is likely to give rise to a significant non-recurring loss provision. Although a range of outcomes has been presented by BVT management, VT currently estimates the loss provision to be in the order of £50m of which VT will recognise a 45% share within its share of the result of BVT for the year ending 31 March 2009. As part of the review of the export contracts contributed by VT into BVT, VT is in negotiation with BAE Systems regarding a possible injection of capital by VT into the business, in a form which will not impact the existing equity holdings or management rights.

Services Businesses:
VT’s Services Businesses continue to make good progress in the period and are in line with our expectations at the time of our interim statement.

VT Education and Skills (VTE&S), working with construction group Costain, has opened its first new school in the London Borough of Lewisham under the Building Schools for the Future programme. VTE&S has long-term contracts for the provision of ICT and facilities management. VTE&S is also part of a consortium that has been named preferred bidder for the BSF programme in the Borough of Luton where VTE&S will provide education services.

In addition, VTE&S has expanded its portfolio in automotive training following award of a contract to provide all technical and non-technical training to UK-based BMW employees. This contract is valued at more than £30 million over five years.

VT Flagship has also expanded its facilities management work with the supply of support services, worth some £30 million over a period up to five years, to Royal Air Force Brampton Wyton Henlow.

VT Nuclear Services has secured two framework contracts to support the Nuclear Installations Inspectorate (NII) in the licensing of new reactors in the UK. We will provide support in the areas of Safety and Quality Assurance Management, and Radioactive Waste and Decommissioning for the next generation of reactors announced by the Government in 2008. VT has also signed a contract in Lithuania to expand its decommissioning activities there. In addition, VT is building its business with British Energy through assisting with engineering studies for spent fuel, a significant move in VT’s strategy to move beyond its traditional nuclear waste and decommissioning market.

Wakefield Metropolitan District Council Planning Committee has granted planning consent for the new waste management treatment plant to be built, operated and maintained by VT in Wakefield, Yorkshire. Commercial close is expected by the end of the financial year. Contract start is anticipated in the first half of our next financial year subject to financing.

VT Support Services has signed a contract valued at £160 million over ten years to provide initial flying training for all three Armed Forces.

VT Communications has completed the first phase of its support for Arqiva in the television Digital Switch Over (DSO) programme by helping to provide engineering and infrastructure solutions for the Border region. Work in further regions is underway.

VT Group Chief Executive Paul Lester commented: “Our Services businesses continue to show good growth and to perform in line with our expectations for the full year. Our exit from BVT Surface Fleet later this year will enable us to refocus exclusively on expanding our core engineering based support services offerings.”

Technorati Tags:
Financial Results, VT Group (London: VTG)

General Dynamics Reports Strong Fourth Quarter, Outstanding Full-Year 2008

General Dynamics Reports Strong Fourth Quarter, Outstanding Full-Year 2008
January 28, 2009

Fourth-quarter Earnings Per Share from Continuing Operations Increase 14 percent

Total Backlog increases 22.5 percent

FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today reported that earnings from continuing operations in the fourth quarter of 2008 were $630 million, or $1.62 per share on a fully diluted basis, compared to 2007 fourth-quarter earnings from continuing operations of $578 million, or $1.42 per share fully diluted. Revenue increased to $7.9 billion in the quarter, compared to fourth-quarter 2007 revenue of $7.5 billion.

Full-year 2008 Results

Earnings from continuing operations for the full year of 2008 were $2.48 billion, or $6.22 per share on a fully diluted basis, an increase of 19.1 percent over 2007 full-year earnings from continuing operations of $2.1 billion, or $5.10 per share fully diluted. Revenue for the full year of 2008 was $29.3 billion, compared with $27.2 billion for 2007, an increase of 7.6 percent.

Cash

Net cash provided by operating activities from continuing operations totaled $805 million in the quarter and $3.1 billion for the year. Free cash flow from operations, defined as net cash provided by operating activities from continuing operations less capital expenditures, was $629 million in the quarter and $2.6 billion for the year.

Backlog

The company’s total backlog grew by $13.6 billion in the fourth quarter of 2008, to $74.1 billion. Compared to year-end 2007, total backlog increased by $27.3 billion. Funded backlog at year-end 2008 was $51.7 billion, an increase of $14.5 billion over the prior year.

Margins

Operating margins for the fourth quarter of 2008 increased to 11.9 percent from 11.6 percent for fourth-quarter 2007. For the full year, company-wide operating margins increased by 110 basis points over 2007, to 12.5 percent.

Net Earnings

General Dynamics’ net earnings for the fourth quarter of 2008 were $612 million, which includes charges related to the sale of certain assets in Spain, compared to fourth-quarter 2007 net earnings of $579 million. Net earnings for the full year were $2.46 billion in 2008, compared to $2.1 billion in 2007.

“General Dynamics continued to perform well in the fourth quarter of 2008,” said Nicholas D. Chabraja, chairman and chief executive officer. “Sales increased in the Aerospace, Marine Systems and Information Systems and Technology groups when compared to the year-ago period, and company-wide operating margins increased 30 basis points in the quarter. The company’s funded and total backlog grew significantly over the previous quarter, and Marine Systems’ total backlog more than doubled, reflecting an order for eight additional Virginia-class nuclear-powered submarines.

“For the full year of 2008, all four business groups generated increased sales, operating earnings grew significantly faster than revenue and free cash flow from operations totaled 106 percent of net earnings,” Chabraja said. “These results reflect our continued focus on creating shareholder value through the fundamental strengths of the company: maximizing the profitability of a durable and growing backlog through continual performance improvement, and strong cash generation that supports strategic capital-deployment decision-making.

“Given the strength of our performance in 2008 and our record backlog going into the new year, we expect 2009 earnings to be in the range of $6.70 to $6.75 per share, fully diluted,” Chabraja said.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 92,300 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available on the Internet at www.generaldynamics.com.

Certain statements made in this press release, including any statements as to future results of operations and financial projections, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management’s current expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in the company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.

All forward-looking statements speak only as of the date they were made. The company does not undertake any obligation to update or publicly release any revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

WEBCAST INFORMATION: General Dynamics will webcast its fourth-quarter securities analyst conference call, scheduled for 11:30 a.m. Eastern Time on Wednesday, January 28, 2009. Those accessing the webcast will be able to listen to management’s discussion of the fourth-quarter and full-year results, as well as the question-and-answer session with securities analysts.

The webcast will be available at www.generaldynamics.com. An on-demand replay of the webcast will be available by 3 p.m. on January 28 and will continue for 12 months.

To hear a recording of the conference call by telephone, please call 888-286-8010 (international: 617-801-6888); passcode 37776365. It will be available from 3 p.m. on January 28 until midnight February 4, 2009.

Technorati Tags:
Financial Results, General Dynamics (NYSE:GD)

U.S. Air Force Awards Northrop Grumman $276 Million Contract for Global Hawk Unmanned Aircraft Sustainment

U.S. Air Force Awards Northrop Grumman $276 Million Contract for Global Hawk Unmanned Aircraft Sustainment

SAN DIEGO, Jan. 28, 2009 (GLOBE NEWSWIRE) -- The U.S. Air Force has awarded Northrop Grumman Corporation (NYSE:NOC) an indefinite-delivery, indefinite-quantity contract valued at $276 million for operations and maintenance support of the RQ-4 Global Hawk unmanned reconnaissance aircraft.

With eight Global Hawks (seven Block 10s and one Block 20) currently stationed at their main operating base at Beale Air Force Base, Calif., or deployed in-theatre, this sustainment contract calls for continued training and peacetime operations support for fiscal years 2009 and 2010. It will also provide operational assistance for two new forward operating locations at Andersen Air Force Base, Guam, and Naval Air Station Sigonella, Italy.

"During that two-year period, all of the next-generation Block 20 Global Hawks will be fielded at all three operating locations and also continuing in support of the global war on terrorism (GWOT)," said George Guerra, Northrop Grumman vice president of high-altitude long-endurance systems. "We are delighted in the Air Force's confidence in this truly dynamic and flexible intelligence, surveillance and reconnaissance system that has recently supported various domestic missions, from wildfires and hurricanes to coastal patrols and drug interdictions."

All work under this contract, such as ongoing engineering, data and configuration management, global supply chain management, spares and repairs, technical data and field services as well as maintenance, will be managed and executed by the 560th Aircraft Sustainment Group at Warner Robins Air Logistics Center in Robins Air Force Base located in middle Georgia.

Northrop Grumman's Global Hawk teammates performing work under this contract include L-3 Communications, Salt Lake City, Utah (communication system); Raytheon Company, Waltham, Mass. (integrated sensor suite and ground station); and Rolls-Royce Corporation, Indianapolis, Ind. (engine).

Logging more than 21,000 combat hours thus far with 95 percent mission effectiveness, Global Hawk can fly up to 65,000 feet for more than 35 hours and see through any inclement weather, day or night. It provides military field commanders with persistent, high-resolution, near real-time imagery and other critical sensor data. The Block 20 configuration can carry 1,000 more pounds (up to 3,000 pounds) of internal payload and operate with two-and-a-half times the electrical power than the Block 10.

Global Hawks are currently flown in four locations across the globe: Beale Air Force Base, home of the 9th Reconnaissance Wing and the RQ-4's main operating base, in Northern California; Edwards Air Force Base in Southern California; Patuxent River Naval Air Station in Maryland; and in support of the GWOT.

Northrop Grumman Corporation is a leading global security company whose 120,000 employees provide innovative systems, products, and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.

Technorati Tags:
Contract $200m+, Contract Win, Northrop Grumman (NYSE:NOC), UAV, US Air Force (USAF)

Next-Generation Longbow UAS Data Link Has Successful First Powered Flight On Apache Block III

Next-Generation Longbow UAS Data Link Has Successful First Powered Flight On Apache Block III

ORLANDO, FL, January 28th, 2009 -- The LONGBOW Limited Liability Company, a joint venture of Lockheed Martin [NYSE: LMT] and Northrop Grumman [NYSE: NOC], recently marked the successful first powered flight of the LONGBOW Unmanned Aerial Systems Tactical Common Data Link Assembly (UTA) aboard the AH-64D Apache Block III attack helicopter.

The LONGBOW UTA is a two-way, high-bandwidth data link for Apache aircrews that allows sensor and flight path control of unmanned aerial systems (UAS). UTA-equipped Apaches enable aircrews to exercise control of UAS at long ranges and receive real-time, high-definition streaming video on their multi-function displays. The UTA is fully integrated with the Apache Arrowhead Modernized Target Acquisition Designation Sight/Pilot Night Vision Sensor system to provide the highest quality day or night imagery to other air and ground platforms.

During testing, the LONGBOW UTA successfully acquired and tracked an Unmanned Little Bird aircraft in flight. The system allowed aircrews to receive and display video transmitted from the UAS. The LONGBOW UTA builds on the proven Apache Video from UAS for Interoperability Teaming – Level 2 (VUIT-2) technology. Apache VUIT-2, developed by Lockheed Martin, is a federated system that offers passive viewing of UAS video. VUIT-2 is currently deployed with U.S. forces in theater.

“This technology is on the leading edge of manned-unmanned teaming,” said Jerry Garman, LONGBOW LLC president and director of LONGBOW programs at Lockheed Martin Missiles and Fire Control. “The net-centric battlefield demands that we continue to provide our Warfighters with unrivaled capabilities, and VUIT-2 and UTA are doing just that.”

The LONGBOW system, as currently configured by the U.S. Army, consists of either a fire control radar or a UTA, a fire-and-forget radar frequency HELLFIRE millimeter wave-guided missile, and an all-digital M299 launcher for the AH-64 Apache helicopter. The LONGBOW UTA will be fielded on the Apache Block III aircraft beginning in 2012.

Northrop Grumman Corporation is a global defense and technology company whose 120,000 employees provide innovative systems, products and solutions in information and services, electronics, aerospace and shipbuilding to government and commercial customers worldwide.

Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 146,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation reported 2008 sales of $42.7 billion.

Technorati Tags:
AH-64 Apache Helicopter, Lockheed Martin (NYSE:LMT), Northrop Grumman (NYSE:NOC)

BAE SYSTEMS AWARDED $120 MILLION TO IMPROVE MILITARY DATA COMMUNICATIONS

BAE SYSTEMS AWARDED $120 MILLION TO IMPROVE MILITARY DATA COMMUNICATIONS
28 January 2009 | Ref. 012/2009

ROCKVILLE, Maryland — BAE Systems has received a $120 million contract to equip up to 400 U.S. Air Force ground vehicles with improved voice and data communications. These capabilities will enable Air Force tactical air controllers to advise ground commanders and coordinate aircraft operations. The program is a component of the Air Force’s Tactical Air Control Party Modernization (TACP-M) program.

Under the contract, which has a maximum potential value of $233 million, BAE Systems will design, produce, and install the TACP-M’s Vehicular Communications System (VCS).

“BAE Systems understands the critical need for improved tactical air control communications as a core capability for our air, sea, and land forces,” said Ted Wright, acting president of the company’s Technology Solutions & Services business area in Rockville, Maryland. “Our long history of supporting Air Force missions will ensure that air controllers will have a superior communications system that provides the best close-air-support available.”

The VCS will provide mobile voice and data communications for Air Force tactical air control parties to operate effectively throughout the battle space. TACPs advise ground commanders and staff on aerospace power capabilities and assist in planning close-air-support operations using vehicle-mounted communications systems, man-pack radios, and digital communications devices.

Use of different communications systems by ground-force units and among a variety of aircraft and command and control nodes requires that the VCS support multiple waveforms and data protocols. Faster and more accurate mission execution is an increasing priority amid growing battlefield data operations.

About BAE Systems
BAE Systems is the premier global defense and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. With approximately 100,000 employees worldwide, BAE Systems' sales exceeded £15.7 billion (US $31.4 billion) in 2007.

Technorati Tags:
BAE Systems (London:BA), Communications, Contract $100m, Contract Win, US Air Force (USAF)

BAE SYSTEMS TO PROVIDE TRANSPARENT ARMORED GUN SHIELDS FOR U.S. MARINE CORPS

BAE SYSTEMS TO PROVIDE TRANSPARENT ARMORED GUN SHIELDS FOR U.S. MARINE CORPS

28 Jan 2009 | Ref. 013/2009

SANTA CLARA, California – Under a $9.9 million contract, BAE Systems will provide 442 Marine Corps Transparent Armored Gun Shield (MCTAGS) turret kits used to protect service members in close urban environments.

“The proven design of our MCTAGS provides direct vision while providing protection against blast fragmentation and small arms fire to the crew while in the turret,” said Ann Hoholick, vice president Amphibious Vehicles & Armor Kits for BAE Systems. “To date more than 6,000 MCTAGS kits have been installed on various military vehicles to provide added protection for the men and women in uniform.”

The kits will be shipped to a Marine Corps base by BAE Systems’ current workforce where they will be installed on High Mobility Multipurpose Wheeled Vehicles (HMMWV) by the U.S. Marine Corps.

Work under the contract will begin immediately in York, Pennsylvania and Santa Clara, California and activity for the initial delivery order is anticipated to be completed in June 2009. The contract is managed by the Marine Corps Systems Command.

BAE Systems’ transparent armored gun shield units have been configured for a wide range of vehicles, including Bradley, M1 Abrams, M113, HMMWV, Medium Tactical Vehicle Replacement, Logistics Vehicle System, Assault Amphibious Vehicle – Personnel and for the Stryker Common Ballistic Shield.

About BAE Systems
BAE Systems is the premier global defense and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services. With approximately 100,000 employees worldwide, BAE Systems' sales exceeded £15.7 billion (US $31.4 billion) in 2007.

Technorati Tags:
BAE Systems (London:BA), Contract <$10m, Contract Win, HMMWV, USMC United States Marine Corps

House Armed Services Committee: The House Armed Services Committee announces the following schedule for the week of February 2 - 6, 2009

House Armed Services Committee: The House Armed Services Committee announces the following schedule for the week of February 2 - 6, 2009
Ike Skelton, Chairman
For planning purposes: January 28, 2009

Wednesday, February 4, 2009 – 2:30 pm – 2118 Rayburn – Open

The Joint Air and Land Forces and Seapower and Expeditionary Forces Subcommittees will meet to receive testimony on Army and Marine Corps force protection programs.

Witnesses:

Major General Robert P. Lennox, USA
Assistant Deputy Chief of Staff, G-3/5/7
U.S. Army

Brigadier General Peter N. Fuller, USA
Program Executive Officer, Soldier
Commanding General, Soldier Systems Center
U.S. Army

Mr. Kevin M. Fahey
Program Executive Office
Combat Support & Combat Service Support
U.S. Army

Brigadier General Michael Brogan, USMC
Commander, Marine Corps Systems Command
Program Executive Officer, MRAP Joint Program Office
U.S. Marine Corps

Technorati Tags:
HASC (House Armed Services Committee), MRAP program

Boeing Part of Development Team for US Air Force F-16 Training Program

Boeing Part of Development Team for US Air Force F-16 Training Program

ST. LOUIS, Jan. 28, 2009 -- Boeing [NYSE: BA] today announced that it will assist in the development of the U.S. Air Force F-16 Mission Training Center (MTC) program as part of a team led by L-3 Link Simulation & Training (L-3 Link). The Aeronautical Systems Center's Simulator Systems Group at Wright-Patterson Air Force Base, Ohio, awarded L-3 Link a $68.2 million contract for the program in December 2008.

"This program supports our growth strategy of capturing contracts for non-Boeing platforms, expands our F-16 business base to allow expansion to markets outside the United States, and supports our position as a leader in the Distributed Mission Operations [DMO] market," said Mark McGraw, vice president of Training Systems & Services, a division of Boeing Integrated Defense Systems Global Services & Support.

The multiyear contract includes options for the production, delivery and sustainment of up to 20 four-ship F-16 MTCs at Air Force installations in the United States, Europe and Pacific region. High-fidelity F-16 MTC simulators, which will accurately model all of the fighter aircraft's weapon systems and ordnance, will be delivered in Block 40/42 and 50/52 configurations to support basic and advanced pilot mission training, tactics validation and mission rehearsal.

If the contract options are exercised, Training Systems & Services will provide F-16 MTC Synthetic Forces Entity Simulation, weapons simulation, instructor/operator stations and brief/debrief stations. L-3 Link will develop and deliver the F-16 simulation, crew stations and visual system, in addition to being responsible for overall system integration, program management and logistics support.

Each F-16 simulator will include a 360-degree visual system, robust synthetic environment, instructor/operator station and brief/debrief station. The simulators can be operated individually or linked together to provide four-ship training, both within the MTC and linked to the DMO network.

A leading provider of networking and integration solutions for training systems, Boeing Training Systems & Services has delivered and currently operates five Air Force F-15C MTCs and three F-15E MTCs around the world. Boeing also is integrating the F-22 Raptor Full Mission Trainer into the DMO training network.

A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft.

Headquartered in St. Louis, Boeing Integrated Defense Systems is a $32 billion business with 70,000 employees worldwide.
###

Technorati Tags:
Boeing (NYSE:BA), F-16 Falcon, Military Training

Boeing Posts Quarterly Loss on Strike Impact and Charges

Boeing Posts Quarterly Loss on Strike Impact and Charges
January 28, 2009

Fourth-quarter revenues declined to $12.7 billion from $17.5 billion as labor strike pushed airplane deliveries out of the quarter

Fourth-quarter EPS declined to loss of $0.08 per share, reduced by an estimated total of $1.79 due to strike, 747 charge and litigation-related reserve

Backlog grew 8 percent in 2008 to a record $352 billion

2009 EPS guidance of $5.05 to $5.35 underpins a solid foundation in challenging times

Technorati Tags:
Boeing (NYSE:BA), Financial Results, Q4 Fourth Quarter

General Dynamics Awarded $10 Million For Submarine Base Support

General Dynamics Awarded $10 Million For Submarine Base Support
January 27, 2009

GROTON, Conn. – The U.S. Navy has awarded General Dynamics Electric Boat a $10.25 million contract modification to continue operating the New England Maintenance Manpower Initiative (NEMMI) at the Naval Submarine Base in Groton. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).

Initially awarded in October 2006, the five-year contract has a potential value of $201.8 million if all options are exercised and funded.

Under the terms of the contract, Electric Boat will provide a wide-range of overhaul, repair and modernization services in support of nuclear submarines, floating dry-docks, support and service craft, and other platforms and equipment at the submarine base. About 270 Electric Boat employees are engaged in the work.

General Dynamics, headquartered in Falls Church, Va., employs approximately 91,200 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about General Dynamics is available online at www.gd.com.


# # #

Technorati Tags:
Contract <$10m, Contract Win, General Dynamics (NYSE:GD)

Northrop Grumman to Webcast 2008 Fourth Quarter and Year-End Financial Results Conference Call

Northrop Grumman to Webcast 2008 Fourth Quarter and Year-End Financial Results Conference Call

LOS ANGELES - Jan. 27, 2009 - Northrop Grumman Corporation (NYSE:NOC) will announce its 2008 fourth quarter and year-end financial results on Tuesday, Feb. 3, 2009. The company's conference call will be held at 10:00 a.m. EST the same day.

The conference call will be webcast live on Northrop Grumman's Web site. Northrop Grumman participants will include Chairman of the Board and Chief Executive Officer Ronald D. Sugar, President and Chief Operating Officer Wes Bush, and Chief Financial Officer James F. Palmer. Replays of the call will be available on the Web site for a limited period of time.

Management's presentations will be supplemented by a series of slides appearing on the company Web site. Listeners are encouraged to view these materials in conjunction with the call. The 2008 fourth quarter and year-end financial results news release will be posted on the home page of the Web site.

Northrop Grumman Corporation is a leading global security company whose 120,000 employees provide innovative systems, products, and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.

Technorati Tags:
Financial Results, Northrop Grumman (NYSE:NOC)

Bell Boeing Team Awarded Joint Performance Based Logistics Contract for V-22 Osprey Support

Bell Boeing Team Awarded Joint Performance Based Logistics Contract for V-22 Osprey Support

AMARILLO, TEXAS, Jan. 27, 2009 -- The Bell Boeing Program Office has announced that it was awarded Phase I of a two-phase Joint Performance Based Logistics (PBL) contract from Naval Air Systems Command in support of the U.S. Marine Corps and the U.S. Air Force Special Operations Command to support the V-22 Osprey tiltrotor aircraft. The contract award was announced by the U.S. Department of Defense on Thursday, Jan. 22. Phase I of the contract, valued at $581 million, provides integrated logistics support for the V-22 over a five-year period.

The first phase of the V-22 Joint PBL contract includes program management, site activation, maintenance planning and supportability analysis, technical data, in-service engineering and logistics, training and trainer support, support equipment, and dedicated and deployable squadron support. The second phase of the V-22 Joint PBL contract award, expected to be announced in mid-2010, will include supply chain management for the V-22, which encompasses the purchase, repair, stocking and delivery of spare and repair parts.

"The Joint PBL contract represents one more step in the growth and maturity of the V-22 program," said Gene Cunningham, vice president of the Bell Boeing Program Office in Amarillo. "It responds to the service's increasing utilization and deployment of the aircraft and enables the V-22 community to ensure that we meet the warfighter's readiness requirements."

"Boeing welcomes the opportunity to expand our support to our U.S. Marine Corps and U.S. Air Force customers through a Performance Based Logistics contract for the V-22 rotorcraft. We are proud to deliver optimized, bundled capabilities to the warfighter and maximize V-22 readiness," said Jim O'Neill, vice president and general manager, Integrated Logistics, Boeing Global Services & Support.

The V-22 Joint PBL contract marks the first contract between Bell Boeing and the U.S. Department of Defense with both the U.S. Marine Corps and U.S. Air Force customers served by one contract. PBL contracts allow the customer to purchase performance instead of paying for individual parts or services.

The V-22 Osprey is a tiltrotor aircraft manufactured by Boeing Rotorcraft Systems (NYSE: BA) and Bell Helicopter, a Textron Inc. (NYSE: TXT) company. Bell and Boeing are teamed in a Strategic Alliance Agreement for the design, production, and support of the V-22.

About Boeing
A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Integrated Defense Systems is a $32.1 billion business with 71,000 employees worldwide. More information is available at www.boeing.com/ids.

About Bell Helicopter
Bell Helicopter, a wholly owned subsidiary of Textron Inc., is an industry-leading producer of commercial and military, manned and unmanned vertical lift aircraft and the pioneer of the revolutionary tilt rotor aircraft. Globally recognized for world-class customer service, innovation and superior quality, Bell's global workforce serves customers flying Bell aircraft in more than 120 countries. More information is available at www.bellhelicopter.com.

About Textron
Textron Inc. is a $12.6 billion multi-industry company operating in 28 countries with approximately 42,000 employees. The company leverages its global network of aircraft, defense and intelligence, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, Textron Systems and Textron Financial Corporation. More information is available at www.textron.com.
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Boeing (NYSE:BA), V-22 Osprey

Boeing Receives Contract Extension for Transformational Satellite Communications System

Boeing Receives Contract Extension for Transformational Satellite Communications System

EL SEGUNDO, Calif., Jan. 27, 2009 -- Boeing [NYSE: BA] has received a $75 million contract extension from the U.S. Air Force to continue risk reduction and system definition for the Transformational Satellite Communications System (TSAT).

The six-month contract extension began on Jan. 7, 2009. This additional award brings Boeing's total TSAT contract funding to $793 million.
"Boeing and our TSAT partners are committed to supporting the U.S. Air Force to move this important program forward," said Craig Cooning, vice president and general manager for Boeing Space and Intelligence Systems. "This contract extension continues the team's work to ensure our men and women in uniform will be able to make rapid decisions based on current, comprehensive information."

TSAT will provide survivable, protected, high-capacity and Internet-like connectivity via satellite for Airborne Intelligence, Surveillance, and Reconnaissance; Communications On The Move; and protected strategic communications.

Boeing has used on-orbit technology produced for a commercial communications satellite services customer to demonstrate low-risk, flight-proven solutions for TSAT. These demonstrations showcased the maturity of Boeing's space-based packet-switching technology. Boeing also has built a single software program that will allow all of TSAT's space and ground systems to work together, eliminating the need for multiple software programs to run different operations.

Boeing's TEAM TSAT consists of Cisco, Hughes, IBM, Harris Corp., Ball Aerospace & Technologies Corp., LGS Innovations, Raytheon, General Dynamics C4 Systems, L-3 Communications, BBN Technologies, EMS Technologies, SAIC and Innovative Communications Engineering (ICE).
A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Integrated Defense Systems is a $32.1 billion business with 71,000 employees worldwide.
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Boeing (NYSE:BA), Space Systems

UK Ministry of Defence media comment: UK's military commitment

Ministry of Defence media comment: UK's military commitment
January 27, 2009

In a letter to the Editor of The Times which has been published in that newspaper today, Defence Secretary John Hutton disputes an article published last week in the paper in which columnist Bronwen Maddox claimed that the UK has no significant military help to give the US. Here is Mr Hutton's letter in full:

"The mutual respect the US and UK armed forces have for each other has never been stronger. Our shared commitment is clear - we are the two greatest providers of troops to Afghanistan. And UK troops have taken the fight to the enemy - clearing insurgents; disrupting enemy communication and destroying weapons and narcotics. These are not the actions of a country with, as Bronwen Maddox claims, 'no significant help left to give'.

"I cannot speak on behalf of the Americans. That is better left to them. The US supreme commander in Afghanistan stated: 'I have no plans for by-passing one of our most trusted partners in the mission'. And the US Corps Commander in Iraq said: 'What the Brits have achieved in Basra is incredible. We need to take lessons from their approach'. These statements pour cold water on Bronwen Maddox's view of a 'caustic mood' about the UK's 'slither out of Basra'.

"Our political and financial commitment to defending our nation remains resolute. Our defence budget is second only to the USA and this Government has brought the longest period of growth for 20 years. And by the end of 2009 will have spent nearly £14bn on operations since 2001.

"This is why we can commit to a new generation of aircraft carriers - the only European country to have done so. Also why we have increased helicopter flying hours by 60%, will send 700 more protected vehicles to Afghanistan and have given our troops the best body armour available. These are not the signs of a country shrinking from defence, but of one committed to maintaining its military capability and working alongside its closest ally now and in the future."

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Afghanistan, Iraq, UK Ministry of Defence

General Dynamics Awarded $12 Million for MK47 STRIKER40 Weapon System Production

General Dynamics Awarded $12 Million for MK47 STRIKER40 Weapon System Production
January 26, 2009

CHARLOTTE, N.C. – General Dynamics Armament and Technical Products, a business unit of General Dynamics (NYSE: GD), has been awarded a $12 million contract from the U.S. government for production of the MK47 STRIKER40® Weapon System.

“The MK47 is a lightweight grenade launcher capable of firing airbursting munitions. Integrating the latest sensing, targeting and computer-programming technology, the MK47 is a reliable, portable 40mm grenade weapon system suited for mobile, tactical combat soldier units. It provides forces with a decisive technological advantage over enemies equipped with older crew-served weapons,” said Jeff Gramse, program manager of gun systems for General Dynamics Armament and Technical Products.

Production work will be performed at General Dynamics in Saco, Maine, with program management being shared with the company’s Burlington, Vt., facility.

General Dynamics Armament and Technical Products, located in Charlotte, N.C., provides a broad range of system solutions for military and commercial applications. The company designs, develops and produces high-performance armament systems; defensive armor solutions; aerospace components; mobile shelter systems; and is a leading U.S. producer of biological and chemical detection systems. More information about General Dynamics Armament and Technical Products can be found on the Internet at www.gdatp.com.

General Dynamics, headquartered in Falls Church, Va., employs approximately 91,200 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available on the Internet at www.generaldynamics.com.
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Contract <$10m, Contract Win, General Dynamics (NYSE:GD), Land Systems

Raytheon Awarded $154 Million for Taiwan Patriot Upgrade

Raytheon Awarded $154 Million for Taiwan Patriot Upgrade

TEWKSBURY, Mass., Jan. 26, 2009 /PRNewswire/ -- Raytheon Company has received a $154 million Foreign Military Sales contract award to upgrade Taiwan's Patriot Air and Missile Defense Systems.

The U.S. Army Aviation and Missile Command, Redstone Arsenal, Ala., issued the contract that includes upgrade kits for radar and command and control components, a radar refurbishment, and related engineering and technical services.

"Upgrading Patriot fire units from Configuration-2 to Configuration-3 will provide Taiwan with enhanced system capabilities to meet current and emerging threats," said Sanjay Kapoor, vice president for Patriot Programs at Raytheon Integrated Defense Systems (IDS). "These awards are additional indications of the viability of Patriot as a reliable air and missile defense system."

This contract is in addition to two other awards Raytheon received last year for Taiwan Patriot support - one in March for upgrades and another in April for technical services.

Work under this contract will be performed by Raytheon IDS at the Integrated Air Defense Center, Andover, Mass.; the Warfighter Protection Center, Huntsville, Ala.; the Mission Capability and Verification Center, White Sands, N.M., and by Raytheon Technical Services Company in El Paso, Texas.

Integrated Defense Systems is Raytheon's leader in Global Capabilities Integration providing affordable, integrated solutions to a broad international and domestic customer base, including the U.S. Missile Defense Agency, the U.S. Armed Forces and the Department of Homeland Security.

Raytheon Company, with 2007 sales of $21.3 billion, is a technology leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 86 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. With headquarters in Waltham, Mass., Raytheon employs 72,000 people worldwide.

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Contract $150m, Contract Win, Patriot, Raytheon (NYSE:RTN)

Lockheed Martin Successful in First Test of U.S. Army’s ATACMS Missile On British Army Launcher

Lockheed Martin Successful in First Test of U.S. Army’s ATACMS Missile On British Army Launcher

DALLAS, TX, January 26th, 2009 -- Lockheed Martin [NYSE: LMT] successfully proved the interoperability of the U.S. Army Tactical Missile System (ATACMS) missile with British M270B1 launchers in a recent test at White Sands Missile Range, NM. The flawless test provided the members of the British military and U.K. Defence Equipment & Support delegation a close look at ATACMS as they work to further determine their artillery system requirements.

M270B1 is the designation for the U.K.’s Multiple Launch Rocket System (MLRS) launcher, which has been in use with U.K. Forces since the early 1990s. The current M270B1 allows the firing of all MLRS rocket munitions, but not ATACMS, which is not fielded by the U.K. This test proved that with a simple system upgrade, the M270B1 can broaden its MLRS-based capabilities to include ATACMS.

“The ATACMS firing was a great success demonstrating the profound reach and precision that this missile brings,” said Mark Bunyan – U.K. Army Artillery Systems team leader.

The test used an ATACMS Unitary variant to destroy a target 130 kilometers away. The operation met all mission objectives, which included:

• Demonstrating the missile – U.K. launcher interface;
• Validating missile performance and accuracy;
• Proving performance of system software; and
• Obtaining performance, technical and reliability data.

“Lockheed Martin works hard to meet the needs of our customers,” said Scott Arnold, vice president for Precision Fires and Combat Maneuver Systems at Lockheed Martin Missiles and Fire Control. “We welcome the opportunity to strengthen customer capability with the full range of the MLRS family of munitions.”

In addition to the U.S., ATACMS is fielded in Bahrain, Greece, South Korea and Turkey.

During Operation Desert Storm, ATACMS became the first tactical surface-to-surface missile ever fired in combat by the U.S. Army. ATACMS is a combat-proven evolutionary family of missiles that also scored numerous successes again in Operation Iraqi Freedom and Operation Enduring Freedom, where over 540 ATACMS missiles have been fired in the Global War on Terror with a reliability rating of over 98 percent.

Last year, as the system continued to evolve, an ATACMS Unitary missile was first fired from a HIMARS launcher equipped with a Universal Fire Control System. This evolutionary block upgrade and technology refresh of the MLRS Fire Control System resulted in a successful test, with a target destroyed approximately 75 kilometers away.

ATACMS is the world’s premier long-range missile artillery round designed specifically for destroying high-priority targets at ranges up to 300 kilometers. Successfully employed in both urban and non-urban environments, it is able to deliver a wide variety of warhead options. Moreover, it can operate in all climate and light conditions while remaining beyond the range of most conventional weapons. Each ATACMS missile is packaged in a MLRS launch pod and is fired from the MLRS Family of Launchers. The M270 and M270A1 launchers can carry two ATACMS missiles, or 12 MLRS rockets, in a full load. HIMARS carries a single ATACMS missile, or six MLRS rockets, and is C-130 transportable.

Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 146,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation reported 2008 sales of $42.7 billion.

Technorati Tags:
Artillery, British Army, Lockheed Martin (NYSE:LMT)

Lockheed Martin Readies Historic Operations & Checkout Facility For New Orion Spacecraft Integration Work

Lockheed Martin Readies Historic Operations & Checkout Facility For New Orion Spacecraft Integration Work

Cape Canaveral, FL , January 26th, 2009 -- After a two-year, top to bottom renovation, the High Bay Facility of the Operations & Checkout (O&C) Building at NASA’S Kennedy Space Center (KSC) is now ready to begin preparations to build the new Orion crew exploration vehicle – the flagship of NASA’s Constellation Program.

Built in 1964, the O&C facility has a proud history as the final integration and checkout building for U.S. spacecraft used for human spaceflight beginning with the Apollo program. In 2007, after completing support activities for the International Space Station, major upgrades were planned to support future human spaceflight missions. The State of Florida, Lockheed Martin Corporation (NYSE: LMT) and NASA committed to invest more than $55 million to create a state-of-the-art facility to support NASA’s future endeavors.

“The most significant benefit of these facility upgrades is that we now have on-site manufacturing and assembly of the spacecraft at KSC just before it is put onto the launch stack,” said Richard Harris, Lockheed Martin Orion deputy program manager for Production Operations. “This is a first for NASA and human space flight technology today. In addition, this capability saves a tremendous amount of time and cost in preparing for a launch since there is no cross-country shipment of the vehicle requiring additional test and checkout upon arrival at KSC.”

“This is another signal to the aerospace industry throughout the nation and internationally that the Space Coast is a location prepared to do business,” said Lt. Governor Jeff Kottkamp. “Our outstanding workforce and talent pool, along with this infrastructure positions the Space Coast to attract additional manufacturing, research, development, and quality processing programs.”

According to Linda Weatherman of the Florida Economic Development Council, the renovation investment made a significant economic impact to the local and state economies. The O&C project has provided over 230 jobs in Florida for the design, fabrication and construction activities.

Renovations by Florida’s Hensel Phelps, the construction contractor for this project, began in 2007 with the demolition of abandoned systems. The project remained on schedule with new facility designs established concurrently by a team of NASA, supporting contractors and Lockheed Martin engineers.

Extending the economic impact beyond the state of Florida, Lockheed Martin has contracted a significant portion of the Orion manufacturing and assembly operations to United Space Alliance, which will utilize its Florida Shuttle workforce. This includes transportation of Crew Modules, Service Modules and miscellaneous equipment to support Orion’s Flight Test Program and Flight Hardware Production. Flight hardware will be fabricated at locations around the country and shipped to the O&C facility for final integration and assembly. Alabama, Arizona, California, Colorado, Connecticut, Louisiana, Maryland, New Mexico, Ohio, Texas, Utah and Virginia are also among those states contributing to this effort.

“The Orion spacecraft will be a complex, state-of-the-art spacecraft with the most capability, flexibility and adaptability of any other space flight vehicle in history,” said Cleon Lacefield, Lockheed Martin vice president and Orion program manager. “It’s very fitting that the O&C facility will offer unparalleled tooling and assembly technology to enable the Orion team to quickly turnaround the reusable parts of Orion or assemble new components prior to launch. This will certainly help improve the efficiency of NASA’S next generation of spacecraft.”

Now that the facility is officially certified, the next phase of activation will take place over the next two years as specially designed tooling stations and other assembly equipment are moved into place to support the first Orion spacecraft assembly activity, which is now scheduled to begin in 2012.

The Constellation program is comprised of spacecraft and surface systems that will carry astronauts to the International Space Station, back to the moon and eventually on to Mars. Lockheed Martin is the prime contractor to NASA for Orion, which is scheduled to make its first crewed flight in 2015.

About Lockheed Martin
Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 146,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation reported 2008 sales of $42.7 billion.
www.lockheedmartin.com

About United Space Alliance
United Space Alliance (USA) is supporting Lockheed Martin’s Orion project in design and development of hardware and software for both flight and ground. USA's primary roles include: performing the assembly, integration, and processing of the Orion capsule at the Kennedy Space Center; providing operations expertise to the Lockheed Martin design and engineering team to ensure optimum operability and producibility; developing the initial Orion avionics integration test facility at the Johnson Space Center; and providing portions of the onboard flight software. More information about USA can be found at www.unitedspacealliance.com

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Lockheed Martin (NYSE:LMT), Space Systems