JLTV very important to Oshkosh

September 7, 2008 by Dagpotter · Comment
Filed under: Department of Defense, Federal Budget Process, Northrop Grumman Corp., Oshkosh Truck Corp, Proposal, logistics, production program 

Oshkosh Industries has struggled over the last 18 months with the downturn in the economy. The stock is down almost 75% since last September. The slowdown in the world economy, especially the construction industry, has hit the company hard. It has received several US defense contracts for heavy vehicles and MRAPs. It also is teamed with Northrop Grumman on the Joint Light Tactical Vehicle (JLTV) proposal for a new tactical vehicle for the US military. If its team wins that will be a lot of work replacing the ubiquitous HUMVEE used by all four of the US services. That would offset the struggles it has been having with its conventional business lines.

See The Milwaukee Journal-Sentinal article for more.

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Various suitors view Harris for takeover

May 28, 2008 by Dagpotter · 1 Comment
Filed under: Acquisitions, Harris Corporation, IT, production program 

This article discusses the situation of Harris Corporation who makes radios for the US military and various civilian applications. There business has boomed over the last few years and their size and contracts have made them a target of the larger US and European defense contractors. Unfortunately the good performance of the company has driven the stock to an all time high making an acquisition very expensive. This is especially true of concerns that with the change in US administrations that there will be a falling off in the US Defense budget. Another concern is that Harris does work on several classified programs making it difficult for foreign companies, like EADS or BAE, to purchase them. Even if it wasn’t in such a time of Congress looking askance at these kinds of acquisitions, the security requirements might be too hard.

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FLIR stock hits all time high

May 22, 2008 by Dagpotter · 1 Comment
Filed under: Contract Additions, FLIR, U.S. Army, production program 

FLIR Systems won a contract modification for the Army worth up to $380 M to build force protection systems. See an article here. This adds to an existing ID/IQ contract for the delivery of such systems. FLIR has built equipment for the US Army and other services to go on aircraft, vehicles and now ground mounted systems for surveillance around US bases. The stock closed at over $37 today.

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Finmeccanica follows through

May 14, 2008 by Dagpotter · 1 Comment
Filed under: Acquisitions, Congress, DRS Technologies, Finemeccanica, IT, Italy, augusta westland, production program 

Bump - Fresh off good financial reports for the quarter, EADS is now looking at DRS Technologies as well. See an article here. This makes it sound like DRS might be a good buy.

As rumored this weekend Finmeccanica bought DRS today. The deal is for around $5 B. See an article here. This is the biggest acquisition so far by an European company. DRS has been an attractive take over target for a few years, one of the reasons its stock was so high. If this deal can make it through the necessary regulatory and legal review it will be quite stunning. Prior to this BAE and EADS had been doing smaller acquisitions, under a $1B. In today’s political environment due to the KC-45 deal and it being an election year it should be interesting to see Congress’s reaction.

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Looking to buy DRS

May 11, 2008 by Dagpotter · Comment
Filed under: Acquisitions, Finemeccanica, Italy, SETA, production program 

This article discusses the idea that Finmeccanica, the Italian defense conglomerate, is looking at DRS Technology for an American acquisition. Like EADS and BAE the Italian company has been expanding its presence in the US. Its helicopter arm, Augusta Westland, won the VH-71 Presidential helicopter teamed with Lockheed Martin and is also trying to win the CSAR-X recompete post-protest. DRS which makes advanced sensors and electronics while providing SETA services has long been an attractive take over target. It’s stock though has done very well recently and for Finmeccanica to buy it would require a substantial investment. Read more

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KC-45 fallout - banner business for GE

March 3, 2008 by Dagpotter · Comment
Filed under: Boeing, Contract Awards, EADS, Northrop Grumman Corp., U.S. Air Force, commercial aviation, logistics 

GE announced that they will make up to $5 Billion off supplying engines for the KC-45 tanker to be built by Northrop-Grumman and EADS. See the press release here. Their, Northrop-Grumman and EADS stock were up.

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