Skanska Awarded Construction Contract for a Military Facility in UK for GBP 150 M, about SEK 1.8 Billion
April 27 2009 - STOCKHOLM, Sweden---Regulatory News:
Skanska (STO:SKAB) has been contracted to build new facilities at the UK Ministry of Defence site, Royal Air Force Wyton in Cambridgeshire. The contract totals GBP 150 M, about SEK 1.8 billion. The order amount is included in order bookings for the second quarter of 2009.
The customer is the Ministry of Defence’s property unit, Defence Estates.
The project is part of a larger modernization program covering technical premises, three buildings on the base for 42 Engineer Regiment (Geographic) as well as service, leisure and recreation facilities. In addition, the project includes land and civil engineering work to improve the exterior environment within the station area. Skanska is also responsible for all engineering as well as the mechanical and electrical installations in the new buildings.
Work begins this summer and the first stages are scheduled to be completed at year-end 2011. The project will be fully completed in autumn 2013.
The headquarters of the British Ministry of Defence in central London was rebuilt and modernized by Skanska in 2001-2004 and a major expansion of a defence facility in Woodbridge, completed in 2006.
Skanska UK reported revenues of SEK 17.9 billion in 2008, with about 4,900 employees. The company is active in building and civil construction, utilities and building services. Skanska is also a leader in the British program for private public partnerships, PFI (Private Finance Initiative).
This and previous releases can also be found at www.skanska.com
Skanska AB may be required to disclose the information provided herein pursuant to the Securities Markets Act.
Skanska is one of the world’s leading project development and construction groups with expertise in construction, development of commercial and residential projects and public-private partnerships. The Group currently has 56,000 employees in selected home markets in Europe, in the US and Latin America. Headquartered in Stockholm, Sweden and listed on the Stockholm Stock Exchange, Skanska's sales in 2008 totaled SEK 144 billion.
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Contacts Skanska UKTanya Barnes, Head of Communicationstel +44 1923 423 905orSkanska ABPeter Gimbe, Press Officertel +46 10 448 88 38orDirect line for media:tel +46 10 448 88 99
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Monday, April 27, 2009
EMRISE Announces Nearly $2 Million in Annualized Profit Improvement Through Companywide Program Aimed at Streamlining Operations and Reducing Cost
EMRISE Announces Nearly $2 Million in Annualized Profit Improvement Through Companywide Program Aimed at Streamlining Operations and Reducing Cost
Realignment of All Business Units Expected to Increase Efficiency Without Impacting Growth
RANCHO CUCAMONGA, Calif.--April 27 2009 --EMRISE CORPORATION (NYSE Arca:ERI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, today announced that it has implemented a companywide program to streamline its operations and reduce costs throughout all of its operating business units in the U.S., the U.K. and France that is expected to achieve annualized cost savings approaching $2 million. The program, which includes headcount reductions and other cost saving initiatives, is designed to eliminate redundancies and increase operating efficiency in all business units, without impacting the Company’s ability to grow.
EMRISE Chairman, President and CEO Carmine T. Oliva said the Company streamlined its operations in nearly every functional area of the business including engineering, manufacturing, sales, and administrative support.
“Earlier this month, we said during our 2008 results conference call that we were in the process of making significant cost reductions at our business units as well as at the corporate level, and we have now substantially completed that process at the business unit level,” Oliva added. “It is always very difficult to see many of our valued employees have to leave, especially since they are such an important asset; however, difficult times call for difficult decisions and we have not spared anyone or any area from this top down review.
“Our fundamental business is doing well, particularly our electronic devices business which is being bolstered by defense spending in our primary force protection and terrorist interdiction product areas, as can be seen from our recent announcements of new orders,” Oliva said. “We continue to be optimistic about the expected growth rates in the defense sector for 2009, and we do not see the headcount reductions and other cost saving measures negatively affecting our ability to service our customers or to take on new business.”
EMRISE management expects there will be one-time costs of approximately $500,000 associated with the business unit headcount reductions and other cost saving initiatives, the majority of which will be recorded in the first half of 2009.
During the Company’s recent conference call, EMRISE management said that the one-time costs of headcount reductions and other cost cutting measures, along with the unfavorable impact of exchange rates would likely lead to a net loss for the first half of 2009. However, as a result of streamlining its operations and the improvements in exchange rates the Company anticipates will occur later this year, EMRISE management expects the Company to be profitable in the last half of 2009.
The Company also plans to announce overhead cost reductions at the corporate level during the second quarter of 2009. These reductions will also be significant and will further add to the nearly $2 million of profit improvement that is contemplated from the changes made at the business unit level.
About EMRISE Corporation
EMRISE designs, manufactures and markets electronic devices, sub-systems and equipment for aerospace, defense, industrial and communications markets. EMRISE products perform key functions such as power supply and power conversion; RF and microwave signal processing; network access and timing and synchronization of communications networks. Primary growth driver applications for EMRISE products include “Radio Frequency Devices for Radio-Controlled Improvised Explosive Device Jamming Systems” and “Edge Network Timing and Synchronization” equipment. EMRISE serves customers in North America, Europe and Asia through operations in the United States, England and France. The Company has built a worldwide base of customers including a majority of the Fortune 100 in the U.S. that do business in markets served by EMRISE and many similar-size companies in Europe and Asia. For more information go to www.emrise.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, the matters discussed in this press release, including without limitation EMRISE’s ability to achieve annualized cost savings at a business unit level approaching $2 million, ability to eliminate redundancies and increase operating efficiency in all business units, without impacting the Company’s ability to grow or ability to streamline its operations in nearly every functional area of the business, ability for EMRISE’s business to be bolstered by defense spending in our primary force protection and terrorist interdiction product areas, ability to predict expected growth rates in the defense sector for 2009, ability to implement headcount reductions and/or other cost saving measures without negatively affecting EMRISE’s ability to service customers or to take on new business, ability to predict one time costs and/or ability to ensure that the majority of such costs will be recorded in the first half of 2009, ability to predict improvements in exchange rates later this year, ability to be profitable in the last half of 2009, ability to achieve additional overhead cost reductions at the corporate level, ability to announce such reductions and/or for such reductions to further contribute to profit improvement in 2009, are all forward-looking statements that involve a number of risks and uncertainties. The actual future results of EMRISE CORPORATION could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, unforeseen technical issues, unforeseen changes in customer demand, unforeseen delays in receipt of materials from our vendors, inability of our products to meet customer specifications, changes in the economic, industry or political climate that may negatively impact demand for our future products, and those factors contained in the “Risk Factors” Section of the Company’s Form 10-K for the year ended December 31, 2008, and other Company filings.
Contacts EMRISE CorporationJohn Donovan, 909-987-9220 ext. 3201Vice President Finance and Administrationjdonovan@emrise.comorAllen & Caron Inc.Rene Caron, 949-474-4300 (investors)rene@allencaron.comLen Hall, 949-474-4300 (media)len@allencaron.com
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Realignment of All Business Units Expected to Increase Efficiency Without Impacting Growth
RANCHO CUCAMONGA, Calif.--April 27 2009 --EMRISE CORPORATION (NYSE Arca:ERI), a multi-national manufacturer of defense and aerospace electronic devices and communications equipment, today announced that it has implemented a companywide program to streamline its operations and reduce costs throughout all of its operating business units in the U.S., the U.K. and France that is expected to achieve annualized cost savings approaching $2 million. The program, which includes headcount reductions and other cost saving initiatives, is designed to eliminate redundancies and increase operating efficiency in all business units, without impacting the Company’s ability to grow.
EMRISE Chairman, President and CEO Carmine T. Oliva said the Company streamlined its operations in nearly every functional area of the business including engineering, manufacturing, sales, and administrative support.
“Earlier this month, we said during our 2008 results conference call that we were in the process of making significant cost reductions at our business units as well as at the corporate level, and we have now substantially completed that process at the business unit level,” Oliva added. “It is always very difficult to see many of our valued employees have to leave, especially since they are such an important asset; however, difficult times call for difficult decisions and we have not spared anyone or any area from this top down review.
“Our fundamental business is doing well, particularly our electronic devices business which is being bolstered by defense spending in our primary force protection and terrorist interdiction product areas, as can be seen from our recent announcements of new orders,” Oliva said. “We continue to be optimistic about the expected growth rates in the defense sector for 2009, and we do not see the headcount reductions and other cost saving measures negatively affecting our ability to service our customers or to take on new business.”
EMRISE management expects there will be one-time costs of approximately $500,000 associated with the business unit headcount reductions and other cost saving initiatives, the majority of which will be recorded in the first half of 2009.
During the Company’s recent conference call, EMRISE management said that the one-time costs of headcount reductions and other cost cutting measures, along with the unfavorable impact of exchange rates would likely lead to a net loss for the first half of 2009. However, as a result of streamlining its operations and the improvements in exchange rates the Company anticipates will occur later this year, EMRISE management expects the Company to be profitable in the last half of 2009.
The Company also plans to announce overhead cost reductions at the corporate level during the second quarter of 2009. These reductions will also be significant and will further add to the nearly $2 million of profit improvement that is contemplated from the changes made at the business unit level.
About EMRISE Corporation
EMRISE designs, manufactures and markets electronic devices, sub-systems and equipment for aerospace, defense, industrial and communications markets. EMRISE products perform key functions such as power supply and power conversion; RF and microwave signal processing; network access and timing and synchronization of communications networks. Primary growth driver applications for EMRISE products include “Radio Frequency Devices for Radio-Controlled Improvised Explosive Device Jamming Systems” and “Edge Network Timing and Synchronization” equipment. EMRISE serves customers in North America, Europe and Asia through operations in the United States, England and France. The Company has built a worldwide base of customers including a majority of the Fortune 100 in the U.S. that do business in markets served by EMRISE and many similar-size companies in Europe and Asia. For more information go to www.emrise.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, the matters discussed in this press release, including without limitation EMRISE’s ability to achieve annualized cost savings at a business unit level approaching $2 million, ability to eliminate redundancies and increase operating efficiency in all business units, without impacting the Company’s ability to grow or ability to streamline its operations in nearly every functional area of the business, ability for EMRISE’s business to be bolstered by defense spending in our primary force protection and terrorist interdiction product areas, ability to predict expected growth rates in the defense sector for 2009, ability to implement headcount reductions and/or other cost saving measures without negatively affecting EMRISE’s ability to service customers or to take on new business, ability to predict one time costs and/or ability to ensure that the majority of such costs will be recorded in the first half of 2009, ability to predict improvements in exchange rates later this year, ability to be profitable in the last half of 2009, ability to achieve additional overhead cost reductions at the corporate level, ability to announce such reductions and/or for such reductions to further contribute to profit improvement in 2009, are all forward-looking statements that involve a number of risks and uncertainties. The actual future results of EMRISE CORPORATION could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, unforeseen technical issues, unforeseen changes in customer demand, unforeseen delays in receipt of materials from our vendors, inability of our products to meet customer specifications, changes in the economic, industry or political climate that may negatively impact demand for our future products, and those factors contained in the “Risk Factors” Section of the Company’s Form 10-K for the year ended December 31, 2008, and other Company filings.
Contacts EMRISE CorporationJohn Donovan, 909-987-9220 ext. 3201Vice President Finance and Administrationjdonovan@emrise.comorAllen & Caron Inc.Rene Caron, 949-474-4300 (investors)rene@allencaron.comLen Hall, 949-474-4300 (media)len@allencaron.com
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American Science and Engineering, Inc. Receives $4.4 Million Service and Maintenance Order from the U.S. Government for ZBVs
American Science and Engineering, Inc. Receives $4.4 Million Service and Maintenance Order from the U.S. Government for ZBVs
BILLERICA, Mass.--April 27 2009 -American Science and Engineering, Inc. (AS&E®) (NASDAQ: ASEI), a leading worldwide supplier of innovative X-ray detection solutions, announced today the receipt of a $4.4 million order from the U.S. government for service and maintenance for Z Backscatter Vans (ZBV) — the industry’s top-selling mobile X-ray screening system.
“As one of the most effective tools for mobile X-ray inspection, the ZBV continues to support the security initiatives of this valued U.S. government client,” said Anthony Fabiano, President and CEO. “Receipt of this service and maintenance contract ensures that the U.S. government’s ZBVs will continue to operate at the highest levels of performance for their critical counterterrorism missions.”
AS&E’s Z Backscatter Van™ (ZBV)
The Most Maneuverable, Versatile Mobile X-ray Detection System on the Market
A breakthrough in X-ray detection technology, AS&E’s Z Backscatter Van is the Number One selling non-intrusive mobile inspection system on the market. ZBV is a low-cost, highly mobile screening system built into a commercially available delivery van. The ZBV allows for immediate deployment in response to security threats, and its high throughput capability facilitates rapid inspections. The system’s unique “drive-by” capability allows one or two operators to conduct X-ray imaging while the ZBV drives past suspect vehicles and objects. For personnel safety in dangerous environments, a remote console is available for operating the system in stationary mode from a distance of up to 500 meters.
AS&E’s Worldwide Service and Support
AS&E’s highly skilled Field Service Engineers (FSEs) provide support services worldwide. Each FSE, with a technical degree in electrical and mechanical engineering or equivalent experience, is trained in the operation and repair of electronics, hydraulics, pneumatics, mechanics, electrical systems, and computers. Available 7 days a week, 24 hours a day, FSEs are located at AS&E offices in Asia, Europe, the Middle East, and North America.
About AS&E®
American Science and Engineering, Inc. (AS&E) is the leading worldwide supplier of innovative X-ray inspection systems. With over 50 years of experience in developing advanced X-ray security systems, the Company’s product line utilizes a combination of technologies, including patented Z Backscatter technology, Radioactive Threat Detection (RTD), high energy transmission and dual energy transmission X-ray. These technologies offer superior X-ray threat detection for plastic explosives, plastic weapons, liquid explosives, dirty bombs and nuclear devices. AS&E’s complete range of products include cargo inspection systems for port and border security, baggage screening systems for facility and aviation security, and personnel and passenger screening systems. AS&E systems protect high-threat facilities and help combat terrorism and trade fraud, drug smuggling, weapon smuggling, and illegal immigration and people smuggling. AS&E customers include leading government agencies, border authorities, military bases, airports and corporations worldwide, including the U.S. Department of Homeland Security (DHS), U.S. Department of Defense (DoD), U.S. Customs and Border Protection (CBP), North Atlantic Treaty Organization (NATO), HM Revenue & Customs (U.K.), Hong Kong Customs, and Abu Dhabi Customs. For more information on AS&E products and technologies, please visit www.as-e.com.
Safe Harbor Statement. The foregoing press release contains statements concerning AS&E’s financial performance, markets and business operations that may be considered “forward-looking” under applicable securities laws. AS&E wishes to caution readers of this press release that actual results might differ materially from those projected in any forward-looking statements. Factors which might cause actual results to differ materially from those projected in the forward-looking statements contained herein include the following: significant reductions or delays in procurements of the Company's systems by the United States and other governments; disruption in the supply of any source component incorporated into AS&E’s products; litigation seeking to restrict the use of intellectual property used by the Company; potential product liability claims against the Company; global political trends and events which affect public perception of the threat presented by drugs, explosives and other contraband; global economic developments and the ability of governments and private organizations to fund purchases of the Company's products to address such threats; and the potential insufficiency of Company resources, including human resources, capital, plant and equipment and management systems, to accommodate any future growth, and future delays in federal funding. These and certain other factors which might cause actual results to differ materially from those projected are detailed from time to time in AS&E’s periodic reports and registration statements filed with the Securities and Exchange Commission, which important factors are incorporated herein by reference. AS&E undertakes no obligation to update forward looking statements to reflect changed assumptions, the occurrence of unanticipated events, or changes in future operating results, financial condition or business over time.
Contacts Red Javelin Communications, Inc.Dana Harris, 978-440-8392dana@redjavelin.comorAmerican Science and Engineering, Inc.Laura Berman, 978-262-8700lberman@as-e.com
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http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
BILLERICA, Mass.--April 27 2009 -American Science and Engineering, Inc. (AS&E®) (NASDAQ: ASEI), a leading worldwide supplier of innovative X-ray detection solutions, announced today the receipt of a $4.4 million order from the U.S. government for service and maintenance for Z Backscatter Vans (ZBV) — the industry’s top-selling mobile X-ray screening system.
“As one of the most effective tools for mobile X-ray inspection, the ZBV continues to support the security initiatives of this valued U.S. government client,” said Anthony Fabiano, President and CEO. “Receipt of this service and maintenance contract ensures that the U.S. government’s ZBVs will continue to operate at the highest levels of performance for their critical counterterrorism missions.”
AS&E’s Z Backscatter Van™ (ZBV)
The Most Maneuverable, Versatile Mobile X-ray Detection System on the Market
A breakthrough in X-ray detection technology, AS&E’s Z Backscatter Van is the Number One selling non-intrusive mobile inspection system on the market. ZBV is a low-cost, highly mobile screening system built into a commercially available delivery van. The ZBV allows for immediate deployment in response to security threats, and its high throughput capability facilitates rapid inspections. The system’s unique “drive-by” capability allows one or two operators to conduct X-ray imaging while the ZBV drives past suspect vehicles and objects. For personnel safety in dangerous environments, a remote console is available for operating the system in stationary mode from a distance of up to 500 meters.
AS&E’s Worldwide Service and Support
AS&E’s highly skilled Field Service Engineers (FSEs) provide support services worldwide. Each FSE, with a technical degree in electrical and mechanical engineering or equivalent experience, is trained in the operation and repair of electronics, hydraulics, pneumatics, mechanics, electrical systems, and computers. Available 7 days a week, 24 hours a day, FSEs are located at AS&E offices in Asia, Europe, the Middle East, and North America.
About AS&E®
American Science and Engineering, Inc. (AS&E) is the leading worldwide supplier of innovative X-ray inspection systems. With over 50 years of experience in developing advanced X-ray security systems, the Company’s product line utilizes a combination of technologies, including patented Z Backscatter technology, Radioactive Threat Detection (RTD), high energy transmission and dual energy transmission X-ray. These technologies offer superior X-ray threat detection for plastic explosives, plastic weapons, liquid explosives, dirty bombs and nuclear devices. AS&E’s complete range of products include cargo inspection systems for port and border security, baggage screening systems for facility and aviation security, and personnel and passenger screening systems. AS&E systems protect high-threat facilities and help combat terrorism and trade fraud, drug smuggling, weapon smuggling, and illegal immigration and people smuggling. AS&E customers include leading government agencies, border authorities, military bases, airports and corporations worldwide, including the U.S. Department of Homeland Security (DHS), U.S. Department of Defense (DoD), U.S. Customs and Border Protection (CBP), North Atlantic Treaty Organization (NATO), HM Revenue & Customs (U.K.), Hong Kong Customs, and Abu Dhabi Customs. For more information on AS&E products and technologies, please visit www.as-e.com.
Safe Harbor Statement. The foregoing press release contains statements concerning AS&E’s financial performance, markets and business operations that may be considered “forward-looking” under applicable securities laws. AS&E wishes to caution readers of this press release that actual results might differ materially from those projected in any forward-looking statements. Factors which might cause actual results to differ materially from those projected in the forward-looking statements contained herein include the following: significant reductions or delays in procurements of the Company's systems by the United States and other governments; disruption in the supply of any source component incorporated into AS&E’s products; litigation seeking to restrict the use of intellectual property used by the Company; potential product liability claims against the Company; global political trends and events which affect public perception of the threat presented by drugs, explosives and other contraband; global economic developments and the ability of governments and private organizations to fund purchases of the Company's products to address such threats; and the potential insufficiency of Company resources, including human resources, capital, plant and equipment and management systems, to accommodate any future growth, and future delays in federal funding. These and certain other factors which might cause actual results to differ materially from those projected are detailed from time to time in AS&E’s periodic reports and registration statements filed with the Securities and Exchange Commission, which important factors are incorporated herein by reference. AS&E undertakes no obligation to update forward looking statements to reflect changed assumptions, the occurrence of unanticipated events, or changes in future operating results, financial condition or business over time.
Contacts Red Javelin Communications, Inc.Dana Harris, 978-440-8392dana@redjavelin.comorAmerican Science and Engineering, Inc.Laura Berman, 978-262-8700lberman@as-e.com
Research defense stocks with the global defense stocks directory at Investorideas.com
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Saturday, April 25, 2009
Defense Stocks -Investing in a Secure World
Defense Stocks -Investing in a Secure World
Global Defense Stocks Directory added to Water Stocks, Renewable Energy Stocks and Biotech Stocks Directories
POINT ROBERTS, Wash., Delta B.C., www.InvestorIdeas.com, one of the first online investor resources providing in-depth information on renewable energy, water and Homeland Security, has updated the Investor Ideas Membership to include the Defense and Homeland Security Stocks Directory.
Investor Ideas provides independent investors access to research tools in key sectors. InvestorIdeas.com is a leading global investor and industry research resource portal specialized in sector investing covering leading industry sectors and global markets including China, India, Middle East and Australia.
Investor Ideas research tools empower independent investors to facilitate their own research. The
Stock directories are also a useful tool for brokers, institutions and funds in the relative sectors.
Investorideas.com has upgraded memberships to include access to the Insiders Corner , Water Stocks Directory, Renewable Energy Stocks Directory , Biotech Stocks Directory and most recently the Defense Stocks Directory at Investorideas.com and security portal, Homelanddefensestocks.com.
Investorideas.com Membership – stock directories
With markets and investor sentiment changing daily- it is more important than ever to stay on top of key trends! Gain Exclusive Insight on Leading Sectors, Global Trends, and Insider Trading Ideas, News, Articles and Investor Ideas Members only Stock Directories.
Become an InvestorIdeas.com member: http://www.investorideas.com/membership/
About Homelanddefensestocks.com- HomelandDefenseStocks.com Portal is a global meeting place for investors and industry following defense and security, within Investorideas.com. Global visitors use the site daily to research the latest news, articles, audio, research reports and stock directories.
Affiliated Homeland Security/Defense Website –
The National Homeland Security Knowledgebase (NHSK) - Securing a Better World
(NHSK) is a leading Non-Government Website for search phrase "Homeland Security" featuring a comprehensive collection of links and resources and news in Homeland Security, Defense and global security issues.
Free Defense Stocks and Industry Newsletter: http://www.twotigersonline.com/newsletter.html
About InvestorIdeas.com:
"One of the first online investor resources providing in-depth information on renewable energy, greentech and water sectors." InvestorIdeas.com is a leading global investor and industry research resource portal specialized in sector investing covering over thirty industry sectors and global markets including China, India, Middle East and Australia.
Disclaimer: Our sites do not make recommendations. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. We attempt to research thoroughly, but we offer no guarantees as to the accuracy of information presented. All Information relating to featured companies is sourced from public documents and/ or the company and is not the opinion of our web sites. This site is currently compensated by featured companies, news submissions and online advertising. www.InvestorIdeas.com/About/Disclaimer.asp
For Additional Information:
Dawn Van Zant: 800-665-0411 - dvanzant@investorideas.com
Source – Investorideas.com
Research defense stocks with the global defense stocks directory at Investorideas.com
click here:
http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
Global Defense Stocks Directory added to Water Stocks, Renewable Energy Stocks and Biotech Stocks Directories
POINT ROBERTS, Wash., Delta B.C., www.InvestorIdeas.com, one of the first online investor resources providing in-depth information on renewable energy, water and Homeland Security, has updated the Investor Ideas Membership to include the Defense and Homeland Security Stocks Directory.
Investor Ideas provides independent investors access to research tools in key sectors. InvestorIdeas.com is a leading global investor and industry research resource portal specialized in sector investing covering leading industry sectors and global markets including China, India, Middle East and Australia.
Investor Ideas research tools empower independent investors to facilitate their own research. The
Stock directories are also a useful tool for brokers, institutions and funds in the relative sectors.
Investorideas.com has upgraded memberships to include access to the Insiders Corner , Water Stocks Directory, Renewable Energy Stocks Directory , Biotech Stocks Directory and most recently the Defense Stocks Directory at Investorideas.com and security portal, Homelanddefensestocks.com.
Investorideas.com Membership – stock directories
With markets and investor sentiment changing daily- it is more important than ever to stay on top of key trends! Gain Exclusive Insight on Leading Sectors, Global Trends, and Insider Trading Ideas, News, Articles and Investor Ideas Members only Stock Directories.
Become an InvestorIdeas.com member: http://www.investorideas.com/membership/
About Homelanddefensestocks.com- HomelandDefenseStocks.com Portal is a global meeting place for investors and industry following defense and security, within Investorideas.com. Global visitors use the site daily to research the latest news, articles, audio, research reports and stock directories.
Affiliated Homeland Security/Defense Website –
The National Homeland Security Knowledgebase (NHSK) - Securing a Better World
(NHSK) is a leading Non-Government Website for search phrase "Homeland Security" featuring a comprehensive collection of links and resources and news in Homeland Security, Defense and global security issues.
Free Defense Stocks and Industry Newsletter: http://www.twotigersonline.com/newsletter.html
About InvestorIdeas.com:
"One of the first online investor resources providing in-depth information on renewable energy, greentech and water sectors." InvestorIdeas.com is a leading global investor and industry research resource portal specialized in sector investing covering over thirty industry sectors and global markets including China, India, Middle East and Australia.
Disclaimer: Our sites do not make recommendations. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. We attempt to research thoroughly, but we offer no guarantees as to the accuracy of information presented. All Information relating to featured companies is sourced from public documents and/ or the company and is not the opinion of our web sites. This site is currently compensated by featured companies, news submissions and online advertising. www.InvestorIdeas.com/About/Disclaimer.asp
For Additional Information:
Dawn Van Zant: 800-665-0411 - dvanzant@investorideas.com
Source – Investorideas.com
Research defense stocks with the global defense stocks directory at Investorideas.com
click here:
http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
Friday, April 24, 2009
GE Announces Agreement with SAFRAN for SAFRAN to Acquire a Majority Stake in GE Security’s Homeland Protection Business
GE Announces Agreement with SAFRAN for SAFRAN to Acquire a Majority Stake in GE Security’s Homeland Protection Business
NEWARK, Calif.---GE (NYSE:GE) announced today that it has signed a definitive agreement with SAFRAN for SAFRAN to acquire 81% of GE Security’s Homeland Protection business for $580MM. Upon close, GE will own 19% and SAFRAN will have majority interest with 81%. The transaction has been approved by the Boards of both companies, and will be subject to customary regulatory approvals.
The Homeland Protection business will become part of SAFRAN’s Defense Security division of Sagem Securite, led by Jean-Paul Jainsky, Chairman and CEO, Sagem Securite. Dennis Cooke, will continue as President & CEO, for the Homeland Protection business and headquarters will remain in Newark, CA.
“This is a great move for our Homeland Protection business,” said Dennis Cooke, President & CEO, GE Security Homeland Protection. “Our business has a strong leadership team, dedicated and talented employees, innovative technology, a large installed base and a strong brand. This move aligns Homeland Protection with a business that is committed to globalization and further investment in new detection technologies and new products for the Homeland Security space.”
The combined company will focus on identification solutions and detection offerings globally and will benefit from continued access to technology advancements from GE’s Global Research Center and GE Healthcare. The combination of the complementary technology of both businesses will provide customers with the benefit of new technology solutions to keep ahead of the changing threats.
SAFRAN and GE are expanding their already strong relationship as the companies have been working together for more than 35 years to deliver Aviation technology solutions. The new entity will feature SAFRAN’s industry-leading ID management, plus Homeland Protection’s world-class aviation safety, checked baggage screening, military & critical infrastructure protection together with new growth platforms in Chem/Bio, X-ray and Radiation/Nuclear detection.
Jean-Paul Herteman, CEO of SAFRAN, said: “Following our 2008 acquisitions of SDU-Identification (a Dutch manufacturer of secure passports and ID documents) and Motorola’s biometrics business (Printrak brand), adding GE Homeland Protection will significantly bolster our Group’s third core business. This makes SAFRAN a pivotal player in the security market, a business that will generate 20% of the Group’s total revenues in the medium term, with double-digit profit perspectives and reducing exposure to aerospace cycles. Furthermore, this transaction is the latest step in our long-standing relationship of mutual trust and partnership with GE that reaches back some 35 years.”
Jean-Paul Jainsky, Chairman and CEO of Sagem Sécurité, added “There is growing demand from both governments and private industry for cutting-edge security solutions, based on long-term projects anchored in advanced, very-high-reliability technologies. From this standpoint, the SAFRAN Group is in a perfect position to meet today’s most demanding public security requirements.”
Combining Homeland Protection’s capabilities with SAFRAN’s portfolio will enable SAFRAN to become a leading global player in airport security solutions. Already a world leader in biometric identification solution, SAFRAN will now provide a differentiated, integrated offering to customers. From checked baggage screening to passenger identity and credentialing to check in, SAFRAN will be able to provide seamless, fully integrated solutions to customers in homeland security. This will enable customers to proactively address threats delivered by terrorists and drug traffickers prior to a potential occurrence.
“This newly combined company is an excellent fit for our Homeland Protection team,” stated Dean Seavers, President & CEO, GE Security. “GE Security will continue to focus on our core security product portfolio with a strong commitment to delivering security innovations that bring value, quality and high performance to our customers and end users.”
SAFRAN, headquartered in Paris, France, will maintain GE Security’s Homeland Protection operations in the U.S., Asia and Europe, Middle East and Africa.
About GE Security
GE Security, Inc. is a wholly owned affiliate of the General Electric Company (NYSE: GE) focused on communication and information technologies for security and life safety solutions. GE Security has more than 5700 employees with operations in over 26 countries and is represented by some of the best-known brand names for intrusion and fire detection, access and building control, video surveillance, explosives and drug detection, key management and structured wiring. GE Homeland Protection, Inc. is focused on explosives and narcotics detection and has approximately 780 employees located in the U.S., Europe and Asia. For more information, visit www.gesecurity.com.
About SAFRAN Group
SAFRAN is an international high-technology group with leadership positions in its core businesses of aerospace propulsion, aircraft equipment, and defense security. The SAFRAN Group employs about 54,000 people in over 30 countries and generates revenue of more than €10 billion. It comprises many companies with prestigious brand names and holds, alone or in partnership, global or European leadership positions in its markets. SAFRAN is listed on NYSE Euronext Paris and its share is included in the SBF 120 and Euronext 100 indices. For more information: www.safran-group.com.
Caution Concerning Forward-Looking Statements
This document contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest rates and commodity prices; strategic actions, including dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; unanticipated loss development in our insurance businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
Contacts GE Enterprise Solutions/GE SecurityMichelle May, +1-989-835-3563michelle.may@ge.comorEdelman for GE SecurityJoanne Rasch, +1-202-277-3105joanne.rasch@edelman.com
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NEWARK, Calif.---GE (NYSE:GE) announced today that it has signed a definitive agreement with SAFRAN for SAFRAN to acquire 81% of GE Security’s Homeland Protection business for $580MM. Upon close, GE will own 19% and SAFRAN will have majority interest with 81%. The transaction has been approved by the Boards of both companies, and will be subject to customary regulatory approvals.
The Homeland Protection business will become part of SAFRAN’s Defense Security division of Sagem Securite, led by Jean-Paul Jainsky, Chairman and CEO, Sagem Securite. Dennis Cooke, will continue as President & CEO, for the Homeland Protection business and headquarters will remain in Newark, CA.
“This is a great move for our Homeland Protection business,” said Dennis Cooke, President & CEO, GE Security Homeland Protection. “Our business has a strong leadership team, dedicated and talented employees, innovative technology, a large installed base and a strong brand. This move aligns Homeland Protection with a business that is committed to globalization and further investment in new detection technologies and new products for the Homeland Security space.”
The combined company will focus on identification solutions and detection offerings globally and will benefit from continued access to technology advancements from GE’s Global Research Center and GE Healthcare. The combination of the complementary technology of both businesses will provide customers with the benefit of new technology solutions to keep ahead of the changing threats.
SAFRAN and GE are expanding their already strong relationship as the companies have been working together for more than 35 years to deliver Aviation technology solutions. The new entity will feature SAFRAN’s industry-leading ID management, plus Homeland Protection’s world-class aviation safety, checked baggage screening, military & critical infrastructure protection together with new growth platforms in Chem/Bio, X-ray and Radiation/Nuclear detection.
Jean-Paul Herteman, CEO of SAFRAN, said: “Following our 2008 acquisitions of SDU-Identification (a Dutch manufacturer of secure passports and ID documents) and Motorola’s biometrics business (Printrak brand), adding GE Homeland Protection will significantly bolster our Group’s third core business. This makes SAFRAN a pivotal player in the security market, a business that will generate 20% of the Group’s total revenues in the medium term, with double-digit profit perspectives and reducing exposure to aerospace cycles. Furthermore, this transaction is the latest step in our long-standing relationship of mutual trust and partnership with GE that reaches back some 35 years.”
Jean-Paul Jainsky, Chairman and CEO of Sagem Sécurité, added “There is growing demand from both governments and private industry for cutting-edge security solutions, based on long-term projects anchored in advanced, very-high-reliability technologies. From this standpoint, the SAFRAN Group is in a perfect position to meet today’s most demanding public security requirements.”
Combining Homeland Protection’s capabilities with SAFRAN’s portfolio will enable SAFRAN to become a leading global player in airport security solutions. Already a world leader in biometric identification solution, SAFRAN will now provide a differentiated, integrated offering to customers. From checked baggage screening to passenger identity and credentialing to check in, SAFRAN will be able to provide seamless, fully integrated solutions to customers in homeland security. This will enable customers to proactively address threats delivered by terrorists and drug traffickers prior to a potential occurrence.
“This newly combined company is an excellent fit for our Homeland Protection team,” stated Dean Seavers, President & CEO, GE Security. “GE Security will continue to focus on our core security product portfolio with a strong commitment to delivering security innovations that bring value, quality and high performance to our customers and end users.”
SAFRAN, headquartered in Paris, France, will maintain GE Security’s Homeland Protection operations in the U.S., Asia and Europe, Middle East and Africa.
About GE Security
GE Security, Inc. is a wholly owned affiliate of the General Electric Company (NYSE: GE) focused on communication and information technologies for security and life safety solutions. GE Security has more than 5700 employees with operations in over 26 countries and is represented by some of the best-known brand names for intrusion and fire detection, access and building control, video surveillance, explosives and drug detection, key management and structured wiring. GE Homeland Protection, Inc. is focused on explosives and narcotics detection and has approximately 780 employees located in the U.S., Europe and Asia. For more information, visit www.gesecurity.com.
About SAFRAN Group
SAFRAN is an international high-technology group with leadership positions in its core businesses of aerospace propulsion, aircraft equipment, and defense security. The SAFRAN Group employs about 54,000 people in over 30 countries and generates revenue of more than €10 billion. It comprises many companies with prestigious brand names and holds, alone or in partnership, global or European leadership positions in its markets. SAFRAN is listed on NYSE Euronext Paris and its share is included in the SBF 120 and Euronext 100 indices. For more information: www.safran-group.com.
Caution Concerning Forward-Looking Statements
This document contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest rates and commodity prices; strategic actions, including dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; unanticipated loss development in our insurance businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
Contacts GE Enterprise Solutions/GE SecurityMichelle May, +1-989-835-3563michelle.may@ge.comorEdelman for GE SecurityJoanne Rasch, +1-202-277-3105joanne.rasch@edelman.com
Research defense stocks with the global defense stocks directory at Investorideas.com
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http://www.investorideas.com/Companies/HomelandDefense/Stock_List.asp
Thursday, April 23, 2009
Defense Stocks News- L-3 (NYSE:LLL) Announces First Quarter 2009 Results
Defense Stocks News- L-3 (NYSE:LLL) Announces First Quarter 2009 Results
Diluted earnings per share increased 10% to $1.66
Net sales increased 4% to $3.6 billion
Net cash from operating activities of $152 million
Funded orders of $3.8 billion and record funded backlog of $11.7 billion
Updated financial guidance for 2009
NEW YORK--April 23 2009 --L-3 Communications (NYSE: LLL ) today reported diluted earnings per share (diluted EPS) of $1.66 for the quarter ended March 27, 2009 (2009 first quarter), up 10%, compared to $1.51(1) for the quarter ended March 28, 2008 (2008 first quarter). Net sales increased 4% to $3.6 billion compared to $3.5 billion for the 2008 first quarter. The 2009 first quarter net cash from operating activities was $152 million, compared to $93 million for the 2008 first quarter.
“L-3 had a good start to the year,” said Michael T. Strianese, chairman, president and chief executive officer. “We grew sales, operating income, diluted EPS and cash flow, and continued to deploy the company’s cash flow to increase shareholder value. During the quarter we acquired Chesapeake Sciences Corporation for $87 million, repurchased $232 million of our common stock, and paid cash dividends of $42 million. We also increased our quarterly cash dividend by 17% to $0.35 per share.”
Consolidated Results First Quarter Ended ($ in millions, except per share data) March 27,2009 March 28,2008 Increase/(decrease) Net sales $ 3,636 $ 3,506 $ 130 Operating income $ 376 $ 368 $ 8 Interest expense, net $ 63 $ 68 $ (5 ) Effective income tax rate 35.8 % 36.0 % (20 )bpts Net income attributable to L-3 Holdings $ 199 $ 189 $ 10 Diluted earnings per share $ 1.66 $ 1.51 $ 0.15
Results of Operations: Consolidated net sales increased 4% compared to the 2008 first quarter driven primarily by growth in the Command, Control, Communication, Intelligence, Surveillance and Reconnaissance (C3ISR) segment, and in the Specialized Products segment. These increases were partially offset by a decrease in the Government Services and Aircraft Modernization and Maintenance (AM&M) segments driven primarily by lower linguist services and lower volume for the U.S. Air Force Contract Field Teams (CFT) contract. The increase in net sales from acquired businesses net of divestitures(2) was $77 million, or 2%.
The 2009 first quarter operating income increased by 2% compared to the 2008 first quarter. Higher pension expense decreased operating income by $19 million ($12 million after income taxes, or $0.10 per diluted share). Operating income as a percentage of sales (operating margin) decreased by 20 basis points to 10.3% compared to 10.5% for the 2008 first quarter. Higher pension expense reduced operating margin by 60 basis points. See segment results below for additional discussion of segment operating income and margin results.
Interest expense, net decreased by $5 million compared to the same period last year primarily because of lower variable interest rates on our term loan.
The effective tax rate for the 2009 first quarter decreased by 20 basis points compared to the same quarter last year due to the U.S. Federal research and experimentation tax credit that was re-enacted during the quarter ended Dec. 31, 2008, partially offset by higher income taxes on foreign income.
In the 2009 first quarter as compared to the 2008 first quarter, net income attributable to L-3 Holdings increased by 5%, and diluted EPS increased by 10%. Diluted weighted average common shares outstanding declined by 4%.
Orders: Funded orders for the 2009 first quarter decreased 8% to $3.8 billion compared to $4.1 billion from the 2008 first quarter. Funded backlog increased slightly to $11.7 billion at March 27, 2009 from $11.6 billion at Dec. 31, 2008.
Cash flow: Free cash flow(3) for the 2009 first quarter was $112 million compared with $55 million for the 2008 first quarter. The increase was primarily due to timing of collections of receivables during the 2009 first quarter compared to the 2008 first quarter.
Segment Results
During the quarter ended March 27, 2009, the company revised its segment presentations to conform to certain re-alignments in the company’s management and organization structure. Consequently, the company made certain reclassifications between its C3ISR, Government Services and AM&M segments. Tables H and I (Unaudited Supplemental Segment Data) attached to this earnings release present: (1) the previous segment data presentation for the year ended December 31, 2008, and the quarterly periods ended March 28, June 27, September 26 and December 31, 2008, (2) reclassifications for these periods to the respective segments, and (3) the revised segment data presentation for these periods.
C3ISR First Quarter Ended ($ in millions) March 27,2009 March 28,2008 Increase/(decrease) Net sales $ 710.1 $ 552.8 $ 157.3 Operating income 78.2 62.0 16.2 Operating margin 11.0 % 11.2 % (20 )bpts
C3ISR net sales for the 2009 first quarter increased by 28% compared to the 2008 first quarter primarily due to continued demand and new contracts from the U.S. Department of Defense (DoD) for airborne ISR and networked communication systems for manned and unmanned platforms.
C3ISR operating income for the 2009 first quarter increased by 26% compared to the 2008 first quarter. Operating margin decreased by 20 basis points. Higher pension expense reduced operating margin by 100 basis points and lower volume for Secure Terminal Equipment (STE) decreased operating margin by 70 basis points. These decreases were partially offset by cost improvements on an international airborne ISR system contract due to a restructuring of contract deliverables with a customer, which increased operating margin by 40 basis points, as well as higher sales volume, improved contract performance and a more favorable sales mix for airborne ISR and networked communication systems.
Government Services First Quarter Ended ($ in millions) March 27,2009 March 28,2008 Decrease Net sales $ 1,004.9 $ 1,108.3 $ (103.4 ) Operating income 90.6 99.5 (8.9 ) Operating margin 9.0 % 9.0 % -- bpts
Government Services net sales for the 2009 first quarter decreased by 9% compared to the 2008 first quarter. Sales declines in linguist services of $130 million and intelligence solutions and support services were partially offset by increases for systems engineering, training and logistics support services to the DoD. The decline in linguist services was due to a decline in L-3’s work share in connection with the transition on June 9, 2008 from an L-3 prime contract to a sub contract. The increase in net sales from acquired businesses was $18 million, or 2%.
Government Services operating income for the 2009 first quarter decreased by 9% compared to the 2008 first quarter. Operating margin for the 2009 first quarter and the 2008 first quarter remained the same. An increase in operating margin due to a decline in lower margin linguist sales was offset by lower margins on an acquired business.
AM&M First Quarter Ended ($ in millions) March 27,2009 March 28,2008 Decrease Net sales $ 663.5 $ 665.5 $ (2.0 ) Operating income 65.8 66.0 (0.2 ) Operating margin 9.9 % 9.9 % -- bpts
AM&M net sales for the 2009 first quarter decreased slightly compared to the 2008 first quarter. Sales volume declined for contract field services due to fewer task orders received because of more competitors on the follow-on CFT indefinite delivery/indefinite quantity contract that began on October 1, 2008, and lower international aircraft modernization sales due to contracts nearing completion. These decreases were largely offset by higher sales for system field support services for U.S. Army and U.S. Navy fixed and rotary wing training aircraft and U.S. Special Operations Forces logistics support due to new contracts and higher demand from existing contracts.
AM&M operating income for the 2009 first quarter decreased slightly compared to the 2008 first quarter. Operating margin for the 2009 first quarter compared to the 2008 first quarter remained the same. Higher pension expense reduced operating margin by 20 basis points and lower international aircraft modernization sales reduced operating margin by 70 basis points. These decreases were offset primarily by a favorable estimated cost adjustment on an international aircraft modernization contract.
Specialized Products First Quarter Ended ($ in millions) March 27,2009 March 28,2008 Increase/(decrease) Net sales $ 1,257.2 $ 1,179.6 $ 77.6 Operating income 141.3 140.5 0.8 Operating margin 11.2 % 11.9 % (70 )bpts
Specialized Products net sales for the 2009 first quarter increased by 7% compared to the 2008 first quarter reflecting higher sales volume primarily for: (1) power & control systems due to new and follow-on contracts for shipboard electronics and power distribution, conditioning and conversion products primarily to the U.S. Navy and tactical remote sensor systems for the U.S. Marines, (2) microwave products primarily due to deliveries of mobile and ground mounted satellite communications systems, and tactical signal intelligence systems for the U.S. military, (3) Electro-Optic/Infrared (EO/IR) products primarily due to demand and deliveries on new and existing contracts, (4) combat propulsion systems due to new contracts and demand from existing contracts, and (5) security and detection systems primarily due to the timing of certain deliveries. These increases were partially offset by a decrease for commercial aviation products and commercial shipbuilding products as a result of reduced demand caused by the global economic recession. The increase in net sales from acquired businesses, net of divestitures, was $59 million, or 5%, and pertains mostly to the Electro-Optical Systems (EOS) business acquired on April 21, 2008 and to Chesapeake Sciences Corporation acquired on January 30, 2009.
Specialized Products operating income for the 2009 first quarter increased slightly compared to the 2008 first quarter. Operating margin for the 2009 first quarter compared to the 2008 first quarter decreased by 70 basis points. Higher pension expense reduced operating margin by 90 basis points and lower sales volume for commercial aviation products and commercial shipbuilding products reduced operating margin by 30 basis points. These decreases were partially offset by higher sales volume and favorable sales mix primarily for power & control systems and security and detection systems. Acquired businesses increased operating margin by 30 basis points.
Financial Outlook
Based on information known as of today, the company revised its consolidated and segment financial guidance for the year ending Dec. 31, 2009, as presented in the tables below.
Consolidated 2009 Financial Guidance Current Prior(Jan. 29, 2009) ($ in billions, except per share data) Net sales $15.5 to $15.7 $15.5 to $15.7 Operating margin 10.4 % 10.4 % Effective tax rate 36.0 % 36.0 % Diluted EPS $7.17 to $7.32 $7.12 to $7.32 Net cash from operating activities $1.43 $1.40 Less: Capital expenditures, net of dispositions of property, plant and equipment 0.23 0.20 Free cash flow $1.20 $1.20 Segment 2009 Financial Guidance Current Prior ($ in billions) Net Sales: C3ISR $2.8 to $2.9 $2.7 to $2.8 Government Services $4.3 to $4.4 $4.4 to $4.5 AM&M $2.7 to $2.8 $2.7 to $2.8 Specialized Products $5.7 to $5.8 $5.7 to $5.8 Operating Margins: C3ISR 10.4% to 10.6 % 10.2% to 10.4 % Government Services 9.8% to 10.0 % 9.9% to 10.1 % AM&M 9.0% to 9.2 % 9.0% to 9.2 % Specialized Products 11.4% to 11.6 % 11.4% to 11.6 %
All financial guidance amounts for the year ending Dec. 31, 2009 are estimates and are subject to the “Forward-Looking Statements” cautionary language on the following page, and the company undertakes no duty to update its guidance. The 2009 financial guidance includes approximately $160 million of sales growth from business acquisitions, net of divestitures. Additional financial information regarding the 2009 first quarter results is available on the company’s Web site at www.L-3com.com.
Conference Call
In conjunction with this release, L-3 will host a conference call today, Thursday, April 23, 2009 at 11:00 a.m. EDT that will be simultaneously broadcast over the Internet. Michael T. Strianese, chairman, president and chief executive officer, Ralph G. D’Ambrosio, vice president and chief financial officer, and Karen C. Tripp, vice president of corporate communications, will host the call.
11:00 a.m. EDT10:00 a.m. CDT9:00 a.m. MDT8:00 a.m. PDT
Listeners may access the conference call live over the Internet at the company’s Web site at:
http://www.L-3com.com
Please allow fifteen minutes prior to the call to visit our Web site to download and install any necessary audio software. The archived version of the call may be accessed at our Web site or by dialing (888) 286-8010 (passcode: 55337281), beginning approximately two hours after the call ends, and will be available until the company’s next quarterly earnings release.
Headquartered in New York City, L-3 employs approximately 65,000 people worldwide and is a prime contractor in aircraft modernization and maintenance, C3ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems and government services. L-3 is also a leading provider of high technology products, subsystems and systems. The company reported 2008 sales of $14.9 billion.
To learn more about L-3, please visit the company’s Web site at www.L-3com.com. L-3 uses its Web site as a channel of distribution of material company information. Financial and other material information regarding L-3 is routinely posted on the company’s Web site and is readily accessible.
Forward-Looking Statements
Certain of the matters discussed in this release that are predictive in nature, that depend upon or refer to events or conditions or that include words such as ‘‘expects,’’ ‘‘anticipates,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘believes,’’ ‘‘estimates,’’ and similar expressions constitute forward-looking statements. Although we believe that these statements are based upon reasonable assumptions, including projections of total sales growth, sales growth from business acquisitions, organic sales growth, consolidated operating margins, total segment operating margins, interest expense, earnings, cash flow, research and development costs, working capital, capital expenditures and other projections, they are subject to several risks and uncertainties that are difficult to predict, and therefore, we can give no assurance that these statements will be achieved. Such statements will also be influenced by factors which include, among other things: our dependence on the defense industry and the business risks peculiar to that industry; our reliance on contracts with a limited number of agencies of, or contractors to, the U.S. Government and the possibility of termination of government contracts by unilateral government action or for failure to perform; the extensive legal and regulatory requirements surrounding our contracts with the U.S. or foreign governments and the results of any investigation of our contracts undertaken by the U.S. or foreign governments; our ability to retain our existing business and related contracts (revenue arrangements); our ability to successfully compete for and win new business and related contracts (revenue arrangements) and to win re-competitions of our existing contracts; our ability to identify and acquire additional businesses in the future with terms that are attractive to L-3 and to integrate acquired business operations; our ability to maintain and improve our consolidated operating margin and total segment operating margin in future periods; our ability to obtain future government contracts (revenue arrangements) on a timely basis; the availability of government funding or cost-cutting initiatives and changes in customer requirements for our products and services; our significant amount of debt and the restrictions contained in our debt agreements; our ability to continue to retain and train our existing employees and to recruit and hire new qualified and skilled employees as well as our ability to retain and hire employees with U.S. Government Security clearances; actual future interest rates, volatility and other assumptions used in the determination of pension benefits and equity based compensation, as well as the market performance of benefit plan assets; our collective bargaining agreements, our ability to successfully negotiate contracts with labor unions and our ability to favorably resolve labor disputes should they arise; the business, economic and political conditions in the markets in which we operate, including those for the commercial aviation, shipbuilding and communications market; global economic uncertainty and continued tightening of the credit markets; our ability to perform contracts on schedule; events beyond our control such as acts of terrorism; our international operations; our extensive use of fixed-price type contracts as compared to cost-reimbursable type and time-and-material type contracts; the rapid change of technology and high level of competition in the defense industry and the commercial industries in which our businesses participate; our introduction of new products into commercial markets or our investments in civil and commercial products or companies; the outcome of litigation matters; results of audits by U.S. Government agencies; anticipated cost savings from business acquisitions not fully realized or realized within the expected time frame; Titan’s compliance with its plea agreement and consent to entry of judgment with the U.S. Government relating to the Foreign Corrupt Practices Act (FCPA), including Titan’s ability to maintain its export licenses as well as the outcome of other FCPA matters; ultimate resolution of contingent matters, claims and investigations relating to acquired businesses, and the impact on the final purchase price allocations; competitive pressure among companies in our industry; and the fair values of our assets, which can be impaired or reduced by other factors, some of which are discussed above.
For a discussion of other risks and uncertainties that could impair our results of operations or financial condition, see ‘‘Part I — Item 1A — Risk Factors’’ and Note 18 to our audited consolidated financial statements, included in our Annual Report on Form 10-K for the year ended Dec. 31, 2008.
Our forward-looking statements are not guarantees of future performance and the actual results or developments may differ materially from the expectations expressed in the forward-looking statements. As for the forward-looking statements that relate to future financial results and other projections, actual results will be different due to the inherent uncertainties of estimates, forecasts and projections and may be better or worse than projected and such differences could be material. Given these uncertainties, you should not place any reliance on these forward-looking statements. These forward-looking statements also represent our estimates and assumptions only as of the date that they were made. We expressly disclaim a duty to provide updates to these forward-looking statements, and the estimates and assumptions associated with them, after the date of this release to reflect events or changes in circumstances or changes in expectations or the occurrence of anticipated events.
(1) During the quarter ended March 27, 2009, the company adopted six new accounting standards, three of which required retrospective application of their provisions. These standards and their retrospective application are more fully described in Tables F and G (Unaudited Supplemental Financial Data) attached to this earnings release.
(2) Sales from acquired businesses net of divestitures are comprised of (i) sales from business and product line acquisitions that are included in L-3’s actual results for less than 12 months, less (ii) sales from business and product line divestitures that are included in L-3’s actual results for the 12 months prior to the divestitures.
(3) See discussion, definition and calculation of free cash flow in Table E attached to this earnings release.
full release and financial tables- http://www.L-3com.com
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Diluted earnings per share increased 10% to $1.66
Net sales increased 4% to $3.6 billion
Net cash from operating activities of $152 million
Funded orders of $3.8 billion and record funded backlog of $11.7 billion
Updated financial guidance for 2009
NEW YORK--April 23 2009 --L-3 Communications (NYSE: LLL ) today reported diluted earnings per share (diluted EPS) of $1.66 for the quarter ended March 27, 2009 (2009 first quarter), up 10%, compared to $1.51(1) for the quarter ended March 28, 2008 (2008 first quarter). Net sales increased 4% to $3.6 billion compared to $3.5 billion for the 2008 first quarter. The 2009 first quarter net cash from operating activities was $152 million, compared to $93 million for the 2008 first quarter.
“L-3 had a good start to the year,” said Michael T. Strianese, chairman, president and chief executive officer. “We grew sales, operating income, diluted EPS and cash flow, and continued to deploy the company’s cash flow to increase shareholder value. During the quarter we acquired Chesapeake Sciences Corporation for $87 million, repurchased $232 million of our common stock, and paid cash dividends of $42 million. We also increased our quarterly cash dividend by 17% to $0.35 per share.”
Consolidated Results First Quarter Ended ($ in millions, except per share data) March 27,2009 March 28,2008 Increase/(decrease) Net sales $ 3,636 $ 3,506 $ 130 Operating income $ 376 $ 368 $ 8 Interest expense, net $ 63 $ 68 $ (5 ) Effective income tax rate 35.8 % 36.0 % (20 )bpts Net income attributable to L-3 Holdings $ 199 $ 189 $ 10 Diluted earnings per share $ 1.66 $ 1.51 $ 0.15
Results of Operations: Consolidated net sales increased 4% compared to the 2008 first quarter driven primarily by growth in the Command, Control, Communication, Intelligence, Surveillance and Reconnaissance (C3ISR) segment, and in the Specialized Products segment. These increases were partially offset by a decrease in the Government Services and Aircraft Modernization and Maintenance (AM&M) segments driven primarily by lower linguist services and lower volume for the U.S. Air Force Contract Field Teams (CFT) contract. The increase in net sales from acquired businesses net of divestitures(2) was $77 million, or 2%.
The 2009 first quarter operating income increased by 2% compared to the 2008 first quarter. Higher pension expense decreased operating income by $19 million ($12 million after income taxes, or $0.10 per diluted share). Operating income as a percentage of sales (operating margin) decreased by 20 basis points to 10.3% compared to 10.5% for the 2008 first quarter. Higher pension expense reduced operating margin by 60 basis points. See segment results below for additional discussion of segment operating income and margin results.
Interest expense, net decreased by $5 million compared to the same period last year primarily because of lower variable interest rates on our term loan.
The effective tax rate for the 2009 first quarter decreased by 20 basis points compared to the same quarter last year due to the U.S. Federal research and experimentation tax credit that was re-enacted during the quarter ended Dec. 31, 2008, partially offset by higher income taxes on foreign income.
In the 2009 first quarter as compared to the 2008 first quarter, net income attributable to L-3 Holdings increased by 5%, and diluted EPS increased by 10%. Diluted weighted average common shares outstanding declined by 4%.
Orders: Funded orders for the 2009 first quarter decreased 8% to $3.8 billion compared to $4.1 billion from the 2008 first quarter. Funded backlog increased slightly to $11.7 billion at March 27, 2009 from $11.6 billion at Dec. 31, 2008.
Cash flow: Free cash flow(3) for the 2009 first quarter was $112 million compared with $55 million for the 2008 first quarter. The increase was primarily due to timing of collections of receivables during the 2009 first quarter compared to the 2008 first quarter.
Segment Results
During the quarter ended March 27, 2009, the company revised its segment presentations to conform to certain re-alignments in the company’s management and organization structure. Consequently, the company made certain reclassifications between its C3ISR, Government Services and AM&M segments. Tables H and I (Unaudited Supplemental Segment Data) attached to this earnings release present: (1) the previous segment data presentation for the year ended December 31, 2008, and the quarterly periods ended March 28, June 27, September 26 and December 31, 2008, (2) reclassifications for these periods to the respective segments, and (3) the revised segment data presentation for these periods.
C3ISR First Quarter Ended ($ in millions) March 27,2009 March 28,2008 Increase/(decrease) Net sales $ 710.1 $ 552.8 $ 157.3 Operating income 78.2 62.0 16.2 Operating margin 11.0 % 11.2 % (20 )bpts
C3ISR net sales for the 2009 first quarter increased by 28% compared to the 2008 first quarter primarily due to continued demand and new contracts from the U.S. Department of Defense (DoD) for airborne ISR and networked communication systems for manned and unmanned platforms.
C3ISR operating income for the 2009 first quarter increased by 26% compared to the 2008 first quarter. Operating margin decreased by 20 basis points. Higher pension expense reduced operating margin by 100 basis points and lower volume for Secure Terminal Equipment (STE) decreased operating margin by 70 basis points. These decreases were partially offset by cost improvements on an international airborne ISR system contract due to a restructuring of contract deliverables with a customer, which increased operating margin by 40 basis points, as well as higher sales volume, improved contract performance and a more favorable sales mix for airborne ISR and networked communication systems.
Government Services First Quarter Ended ($ in millions) March 27,2009 March 28,2008 Decrease Net sales $ 1,004.9 $ 1,108.3 $ (103.4 ) Operating income 90.6 99.5 (8.9 ) Operating margin 9.0 % 9.0 % -- bpts
Government Services net sales for the 2009 first quarter decreased by 9% compared to the 2008 first quarter. Sales declines in linguist services of $130 million and intelligence solutions and support services were partially offset by increases for systems engineering, training and logistics support services to the DoD. The decline in linguist services was due to a decline in L-3’s work share in connection with the transition on June 9, 2008 from an L-3 prime contract to a sub contract. The increase in net sales from acquired businesses was $18 million, or 2%.
Government Services operating income for the 2009 first quarter decreased by 9% compared to the 2008 first quarter. Operating margin for the 2009 first quarter and the 2008 first quarter remained the same. An increase in operating margin due to a decline in lower margin linguist sales was offset by lower margins on an acquired business.
AM&M First Quarter Ended ($ in millions) March 27,2009 March 28,2008 Decrease Net sales $ 663.5 $ 665.5 $ (2.0 ) Operating income 65.8 66.0 (0.2 ) Operating margin 9.9 % 9.9 % -- bpts
AM&M net sales for the 2009 first quarter decreased slightly compared to the 2008 first quarter. Sales volume declined for contract field services due to fewer task orders received because of more competitors on the follow-on CFT indefinite delivery/indefinite quantity contract that began on October 1, 2008, and lower international aircraft modernization sales due to contracts nearing completion. These decreases were largely offset by higher sales for system field support services for U.S. Army and U.S. Navy fixed and rotary wing training aircraft and U.S. Special Operations Forces logistics support due to new contracts and higher demand from existing contracts.
AM&M operating income for the 2009 first quarter decreased slightly compared to the 2008 first quarter. Operating margin for the 2009 first quarter compared to the 2008 first quarter remained the same. Higher pension expense reduced operating margin by 20 basis points and lower international aircraft modernization sales reduced operating margin by 70 basis points. These decreases were offset primarily by a favorable estimated cost adjustment on an international aircraft modernization contract.
Specialized Products First Quarter Ended ($ in millions) March 27,2009 March 28,2008 Increase/(decrease) Net sales $ 1,257.2 $ 1,179.6 $ 77.6 Operating income 141.3 140.5 0.8 Operating margin 11.2 % 11.9 % (70 )bpts
Specialized Products net sales for the 2009 first quarter increased by 7% compared to the 2008 first quarter reflecting higher sales volume primarily for: (1) power & control systems due to new and follow-on contracts for shipboard electronics and power distribution, conditioning and conversion products primarily to the U.S. Navy and tactical remote sensor systems for the U.S. Marines, (2) microwave products primarily due to deliveries of mobile and ground mounted satellite communications systems, and tactical signal intelligence systems for the U.S. military, (3) Electro-Optic/Infrared (EO/IR) products primarily due to demand and deliveries on new and existing contracts, (4) combat propulsion systems due to new contracts and demand from existing contracts, and (5) security and detection systems primarily due to the timing of certain deliveries. These increases were partially offset by a decrease for commercial aviation products and commercial shipbuilding products as a result of reduced demand caused by the global economic recession. The increase in net sales from acquired businesses, net of divestitures, was $59 million, or 5%, and pertains mostly to the Electro-Optical Systems (EOS) business acquired on April 21, 2008 and to Chesapeake Sciences Corporation acquired on January 30, 2009.
Specialized Products operating income for the 2009 first quarter increased slightly compared to the 2008 first quarter. Operating margin for the 2009 first quarter compared to the 2008 first quarter decreased by 70 basis points. Higher pension expense reduced operating margin by 90 basis points and lower sales volume for commercial aviation products and commercial shipbuilding products reduced operating margin by 30 basis points. These decreases were partially offset by higher sales volume and favorable sales mix primarily for power & control systems and security and detection systems. Acquired businesses increased operating margin by 30 basis points.
Financial Outlook
Based on information known as of today, the company revised its consolidated and segment financial guidance for the year ending Dec. 31, 2009, as presented in the tables below.
Consolidated 2009 Financial Guidance Current Prior(Jan. 29, 2009) ($ in billions, except per share data) Net sales $15.5 to $15.7 $15.5 to $15.7 Operating margin 10.4 % 10.4 % Effective tax rate 36.0 % 36.0 % Diluted EPS $7.17 to $7.32 $7.12 to $7.32 Net cash from operating activities $1.43 $1.40 Less: Capital expenditures, net of dispositions of property, plant and equipment 0.23 0.20 Free cash flow $1.20 $1.20 Segment 2009 Financial Guidance Current Prior ($ in billions) Net Sales: C3ISR $2.8 to $2.9 $2.7 to $2.8 Government Services $4.3 to $4.4 $4.4 to $4.5 AM&M $2.7 to $2.8 $2.7 to $2.8 Specialized Products $5.7 to $5.8 $5.7 to $5.8 Operating Margins: C3ISR 10.4% to 10.6 % 10.2% to 10.4 % Government Services 9.8% to 10.0 % 9.9% to 10.1 % AM&M 9.0% to 9.2 % 9.0% to 9.2 % Specialized Products 11.4% to 11.6 % 11.4% to 11.6 %
All financial guidance amounts for the year ending Dec. 31, 2009 are estimates and are subject to the “Forward-Looking Statements” cautionary language on the following page, and the company undertakes no duty to update its guidance. The 2009 financial guidance includes approximately $160 million of sales growth from business acquisitions, net of divestitures. Additional financial information regarding the 2009 first quarter results is available on the company’s Web site at www.L-3com.com.
Conference Call
In conjunction with this release, L-3 will host a conference call today, Thursday, April 23, 2009 at 11:00 a.m. EDT that will be simultaneously broadcast over the Internet. Michael T. Strianese, chairman, president and chief executive officer, Ralph G. D’Ambrosio, vice president and chief financial officer, and Karen C. Tripp, vice president of corporate communications, will host the call.
11:00 a.m. EDT10:00 a.m. CDT9:00 a.m. MDT8:00 a.m. PDT
Listeners may access the conference call live over the Internet at the company’s Web site at:
http://www.L-3com.com
Please allow fifteen minutes prior to the call to visit our Web site to download and install any necessary audio software. The archived version of the call may be accessed at our Web site or by dialing (888) 286-8010 (passcode: 55337281), beginning approximately two hours after the call ends, and will be available until the company’s next quarterly earnings release.
Headquartered in New York City, L-3 employs approximately 65,000 people worldwide and is a prime contractor in aircraft modernization and maintenance, C3ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems and government services. L-3 is also a leading provider of high technology products, subsystems and systems. The company reported 2008 sales of $14.9 billion.
To learn more about L-3, please visit the company’s Web site at www.L-3com.com. L-3 uses its Web site as a channel of distribution of material company information. Financial and other material information regarding L-3 is routinely posted on the company’s Web site and is readily accessible.
Forward-Looking Statements
Certain of the matters discussed in this release that are predictive in nature, that depend upon or refer to events or conditions or that include words such as ‘‘expects,’’ ‘‘anticipates,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘believes,’’ ‘‘estimates,’’ and similar expressions constitute forward-looking statements. Although we believe that these statements are based upon reasonable assumptions, including projections of total sales growth, sales growth from business acquisitions, organic sales growth, consolidated operating margins, total segment operating margins, interest expense, earnings, cash flow, research and development costs, working capital, capital expenditures and other projections, they are subject to several risks and uncertainties that are difficult to predict, and therefore, we can give no assurance that these statements will be achieved. Such statements will also be influenced by factors which include, among other things: our dependence on the defense industry and the business risks peculiar to that industry; our reliance on contracts with a limited number of agencies of, or contractors to, the U.S. Government and the possibility of termination of government contracts by unilateral government action or for failure to perform; the extensive legal and regulatory requirements surrounding our contracts with the U.S. or foreign governments and the results of any investigation of our contracts undertaken by the U.S. or foreign governments; our ability to retain our existing business and related contracts (revenue arrangements); our ability to successfully compete for and win new business and related contracts (revenue arrangements) and to win re-competitions of our existing contracts; our ability to identify and acquire additional businesses in the future with terms that are attractive to L-3 and to integrate acquired business operations; our ability to maintain and improve our consolidated operating margin and total segment operating margin in future periods; our ability to obtain future government contracts (revenue arrangements) on a timely basis; the availability of government funding or cost-cutting initiatives and changes in customer requirements for our products and services; our significant amount of debt and the restrictions contained in our debt agreements; our ability to continue to retain and train our existing employees and to recruit and hire new qualified and skilled employees as well as our ability to retain and hire employees with U.S. Government Security clearances; actual future interest rates, volatility and other assumptions used in the determination of pension benefits and equity based compensation, as well as the market performance of benefit plan assets; our collective bargaining agreements, our ability to successfully negotiate contracts with labor unions and our ability to favorably resolve labor disputes should they arise; the business, economic and political conditions in the markets in which we operate, including those for the commercial aviation, shipbuilding and communications market; global economic uncertainty and continued tightening of the credit markets; our ability to perform contracts on schedule; events beyond our control such as acts of terrorism; our international operations; our extensive use of fixed-price type contracts as compared to cost-reimbursable type and time-and-material type contracts; the rapid change of technology and high level of competition in the defense industry and the commercial industries in which our businesses participate; our introduction of new products into commercial markets or our investments in civil and commercial products or companies; the outcome of litigation matters; results of audits by U.S. Government agencies; anticipated cost savings from business acquisitions not fully realized or realized within the expected time frame; Titan’s compliance with its plea agreement and consent to entry of judgment with the U.S. Government relating to the Foreign Corrupt Practices Act (FCPA), including Titan’s ability to maintain its export licenses as well as the outcome of other FCPA matters; ultimate resolution of contingent matters, claims and investigations relating to acquired businesses, and the impact on the final purchase price allocations; competitive pressure among companies in our industry; and the fair values of our assets, which can be impaired or reduced by other factors, some of which are discussed above.
For a discussion of other risks and uncertainties that could impair our results of operations or financial condition, see ‘‘Part I — Item 1A — Risk Factors’’ and Note 18 to our audited consolidated financial statements, included in our Annual Report on Form 10-K for the year ended Dec. 31, 2008.
Our forward-looking statements are not guarantees of future performance and the actual results or developments may differ materially from the expectations expressed in the forward-looking statements. As for the forward-looking statements that relate to future financial results and other projections, actual results will be different due to the inherent uncertainties of estimates, forecasts and projections and may be better or worse than projected and such differences could be material. Given these uncertainties, you should not place any reliance on these forward-looking statements. These forward-looking statements also represent our estimates and assumptions only as of the date that they were made. We expressly disclaim a duty to provide updates to these forward-looking statements, and the estimates and assumptions associated with them, after the date of this release to reflect events or changes in circumstances or changes in expectations or the occurrence of anticipated events.
(1) During the quarter ended March 27, 2009, the company adopted six new accounting standards, three of which required retrospective application of their provisions. These standards and their retrospective application are more fully described in Tables F and G (Unaudited Supplemental Financial Data) attached to this earnings release.
(2) Sales from acquired businesses net of divestitures are comprised of (i) sales from business and product line acquisitions that are included in L-3’s actual results for less than 12 months, less (ii) sales from business and product line divestitures that are included in L-3’s actual results for the 12 months prior to the divestitures.
(3) See discussion, definition and calculation of free cash flow in Table E attached to this earnings release.
full release and financial tables- http://www.L-3com.com
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Defense Stocks News - Raytheon (NYSE:RTN) Reports Strong First Quarter Results; Increases Full-Year Guidance
Defense Stocks News - Raytheon (NYSE:RTN) Reports Strong First Quarter Results; Increases Full-Year Guidance
- Net sales of $5.9 billion, up 10 percent
- Operating income of $712 million, up 17 percent
- Earnings per share (EPS) from continuing operations of $1.11, up 21 percent
- Solid bookings of $5.2 billion; backlog of $37.9 billion
- Increased annual dividend by 11 percent to $1.24 per share, as previously announced
WALTHAM, Mass., April 23, 2009 -- Raytheon Company (NYSE: RTN ) reported first quarter 2009 income from continuing operations of $457 million or $1.11 per diluted share compared to $401 million or $0.92 per diluted share in the first quarter 2008.
"We delivered strong results across all of our businesses during the quarter," said William H. Swanson, Raytheon's Chairman and CEO. "Raytheon's strong domestic and international business and diverse portfolio of more than 8,000 programs position us well today and for the future."
Net sales for the first quarter 2009 were $5.9 billion, up 10 percent from $5.4 billion in the first quarter 2008, with growth across all of the Company's businesses.
Operating cash flow from continuing operations for the first quarter 2009 was $411 million compared to $67 million for the first quarter 2008. The increase in operating cash flow was primarily due to a $337 million tax refund received in the first quarter 2009.
In the first quarter 2009 the Company repurchased 6.8 million shares of common stock for $300 million, as part of the Company's previously announced share repurchase program. In addition, as announced in March 2009, the Company's Board of Directors voted to increase the Company's annual dividend payout rate by 11 percent from $1.12 to $1.24 per share.
The Company ended the first quarter 2009 with $87 million of net debt. Net debt is defined as total debt less cash and cash equivalents.
Summary Financial Results 1st Quarter % ($in millions, except per share data) 2009 2008 Change
Net sales $5,884 $5,354 10% Total operating expenses 5,172 4,745 Operating income 712 609 17% Non-operating expenses, net 33 16 Income from cont. ops. before taxes $679 $593 15% Income from continuing operations $457 $401 14% Income/(loss) from disc. ops., net NM of tax 3 (2) Net income(1) $460 $399 15% Less: noncontrolling interests(1) 8 1 Net income attributable to Raytheon Company(1) $452 $398 14% Diluted EPS from continuing operations(2) $1.11 $0.92 21% Diluted EPS(2) $1.12 $0.92 22%
Operating cash flow from cont. ops. $411 $67 FAS/CAS pension adjustment Inc./(Exp.) $11 $(33) Workdays in fiscal reporting calendar 61 63
(1) Raytheon Company adopted FAS No.160, Noncontrolling Interests in Consolidated Financial Statements, effective January 1, 2009. (2) Raytheon Company adopted FASB Staff Position EITF 03-6-1 for Participating Securities, effective January 1, 2009, which decreased Q1 2008 diluted EPS from continuing operations by $0.01. The impact on Q1 2008 diluted EPS was less than $0.01.
The Company adopted FAS No.160, Noncontrolling Interests in Consolidated Financial Statements, effective January 1, 2009. The Company's noncontrolling interests relate primarily to Thales-Raytheon Systems Co. LLC, which is included in the Network Centric Systems (NCS) segment. The impact to NCS in the first quarter 2009 is an increase of $8 million in operating income compared to an increase of $1 million in the first quarter 2008.
During the quarter, the Company changed the reporting of a U.K. manufacturing facility from Space and Airborne Systems to Missile Systems. Prior period segment results have been revised to reflect this reorganization.
Bookings and Backlog
Bookings 1st Quarter ($in millions) 2009 2008
Total Bookings $5,209 $6,516
Backlog Period Ended ($in millions) 03/29/09 12/31/08
Backlog $37,939 $38,884 Funded Backlog $23,022 $21,986
The Company reported total bookings for the first quarter 2009 of $5.2 billion compared to $6.5 billion in the first quarter 2008. The Company ended the first quarter 2009 with a backlog of $37.9 billion compared to $38.9 billion at the end of 2008 and $37.7 billion at the end of the first quarter 2008.
Outlook
2009 Financial Outlook Current Prior (1/29/09)
Net Sales ($B) 24.4 - 24.9* 24.3 - 24.8 FAS/CAS Pension Income ($M) 47 47 Interest Inc./(Exp.), net ($M) (105) - (115) (105) - (115) Diluted Shares (M) 398 - 401* 402 - 405 EPS from Continuing Operations $4.55 - $4.70* $4.45 - $4.60 Operating Cash Flow from Cont. Ops. ($B) 2.2 - 2.4 2.2 - 2.4 ROIC (%) 11.1 - 11.6* 11.0 - 11.5**
* Denotes change from prior guidance. ** Prior ROIC guidance now reflects a 10 bp increase due to the impact of FAS 160, Noncontrolling Interests in Consolidated Financial Statements, which the Company adopted January 1, 2009. The Company's noncontrolling interests relate primarily to Thales-Raytheon Systems Co. LLC at NCS.
The Company has increased full-year 2009 guidance for net sales, earnings per share from continuing operations and Return on Invested Capital (ROIC), and updated the outlook for diluted share count. Charts containing additional information on the Company's 2009 guidance are available on the Company's website at www.raytheon.com.
see full financials and news at www.raytheon.com
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- Net sales of $5.9 billion, up 10 percent
- Operating income of $712 million, up 17 percent
- Earnings per share (EPS) from continuing operations of $1.11, up 21 percent
- Solid bookings of $5.2 billion; backlog of $37.9 billion
- Increased annual dividend by 11 percent to $1.24 per share, as previously announced
WALTHAM, Mass., April 23, 2009 -- Raytheon Company (NYSE: RTN ) reported first quarter 2009 income from continuing operations of $457 million or $1.11 per diluted share compared to $401 million or $0.92 per diluted share in the first quarter 2008.
"We delivered strong results across all of our businesses during the quarter," said William H. Swanson, Raytheon's Chairman and CEO. "Raytheon's strong domestic and international business and diverse portfolio of more than 8,000 programs position us well today and for the future."
Net sales for the first quarter 2009 were $5.9 billion, up 10 percent from $5.4 billion in the first quarter 2008, with growth across all of the Company's businesses.
Operating cash flow from continuing operations for the first quarter 2009 was $411 million compared to $67 million for the first quarter 2008. The increase in operating cash flow was primarily due to a $337 million tax refund received in the first quarter 2009.
In the first quarter 2009 the Company repurchased 6.8 million shares of common stock for $300 million, as part of the Company's previously announced share repurchase program. In addition, as announced in March 2009, the Company's Board of Directors voted to increase the Company's annual dividend payout rate by 11 percent from $1.12 to $1.24 per share.
The Company ended the first quarter 2009 with $87 million of net debt. Net debt is defined as total debt less cash and cash equivalents.
Summary Financial Results 1st Quarter % ($in millions, except per share data) 2009 2008 Change
Net sales $5,884 $5,354 10% Total operating expenses 5,172 4,745 Operating income 712 609 17% Non-operating expenses, net 33 16 Income from cont. ops. before taxes $679 $593 15% Income from continuing operations $457 $401 14% Income/(loss) from disc. ops., net NM of tax 3 (2) Net income(1) $460 $399 15% Less: noncontrolling interests(1) 8 1 Net income attributable to Raytheon Company(1) $452 $398 14% Diluted EPS from continuing operations(2) $1.11 $0.92 21% Diluted EPS(2) $1.12 $0.92 22%
Operating cash flow from cont. ops. $411 $67 FAS/CAS pension adjustment Inc./(Exp.) $11 $(33) Workdays in fiscal reporting calendar 61 63
(1) Raytheon Company adopted FAS No.160, Noncontrolling Interests in Consolidated Financial Statements, effective January 1, 2009. (2) Raytheon Company adopted FASB Staff Position EITF 03-6-1 for Participating Securities, effective January 1, 2009, which decreased Q1 2008 diluted EPS from continuing operations by $0.01. The impact on Q1 2008 diluted EPS was less than $0.01.
The Company adopted FAS No.160, Noncontrolling Interests in Consolidated Financial Statements, effective January 1, 2009. The Company's noncontrolling interests relate primarily to Thales-Raytheon Systems Co. LLC, which is included in the Network Centric Systems (NCS) segment. The impact to NCS in the first quarter 2009 is an increase of $8 million in operating income compared to an increase of $1 million in the first quarter 2008.
During the quarter, the Company changed the reporting of a U.K. manufacturing facility from Space and Airborne Systems to Missile Systems. Prior period segment results have been revised to reflect this reorganization.
Bookings and Backlog
Bookings 1st Quarter ($in millions) 2009 2008
Total Bookings $5,209 $6,516
Backlog Period Ended ($in millions) 03/29/09 12/31/08
Backlog $37,939 $38,884 Funded Backlog $23,022 $21,986
The Company reported total bookings for the first quarter 2009 of $5.2 billion compared to $6.5 billion in the first quarter 2008. The Company ended the first quarter 2009 with a backlog of $37.9 billion compared to $38.9 billion at the end of 2008 and $37.7 billion at the end of the first quarter 2008.
Outlook
2009 Financial Outlook Current Prior (1/29/09)
Net Sales ($B) 24.4 - 24.9* 24.3 - 24.8 FAS/CAS Pension Income ($M) 47 47 Interest Inc./(Exp.), net ($M) (105) - (115) (105) - (115) Diluted Shares (M) 398 - 401* 402 - 405 EPS from Continuing Operations $4.55 - $4.70* $4.45 - $4.60 Operating Cash Flow from Cont. Ops. ($B) 2.2 - 2.4 2.2 - 2.4 ROIC (%) 11.1 - 11.6* 11.0 - 11.5**
* Denotes change from prior guidance. ** Prior ROIC guidance now reflects a 10 bp increase due to the impact of FAS 160, Noncontrolling Interests in Consolidated Financial Statements, which the Company adopted January 1, 2009. The Company's noncontrolling interests relate primarily to Thales-Raytheon Systems Co. LLC at NCS.
The Company has increased full-year 2009 guidance for net sales, earnings per share from continuing operations and Return on Invested Capital (ROIC), and updated the outlook for diluted share count. Charts containing additional information on the Company's 2009 guidance are available on the Company's website at www.raytheon.com.
see full financials and news at www.raytheon.com
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