_Aerospace Daily

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COLTEC INDUSTRIES INC., Charlotte, N.C., acquired Eaton Corp.'s temperature sensor product line. Coltec makes temperature sensor products at its Lewis Engineering operation in Naugatuck, Conn.

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Lockheed Martin Information Systems, Orlando, Fla., and Air Safety International, Vero Beach, Fla., agreed to combine complementary capabilities and resources to pursue business opportunities in the flight training market, Lockheed Martin said. The two companies will design and deliver custom-tailored flight training instructional materials, personnel, simulation, maintenance and support.

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The threat to the U.S. of a ballistic missile attack today is broader, more mature and evolving more rapidly than the Intelligence Community has ever estimated or reported, according to the findings of a congressionally mandated commission. Moreover, said the "Commission to Assess The Ballistic Missile Threat to the United States," the U.S. may have little or no warning of an attack.

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Ukrainian space officials are expected to raise the possibility of gaining entry into the International Space Station program by building a research module for cash-strapped Russia during a meeting today with NASA Administrator Daniel S. Goldin.

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RADA ELECTRONICS INDUSTRIES LTD., Herzliya Pituach, Israel, elected Major Gen. (res.) Herzle Bodinger, president and CEO, as chairman of the board, the company announced yesterday.

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Talks between the Defense Dept. and Lockheed Martin and Northrop Grumman to resolve the Pentagon's concerns about the proposed merger of the two companies have failed, the Pentagon said yesterday.

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Charges related to previously announced plant closures and cost increases on the E-2C and E-8C surveillance aircraft programs led to a 14% drop in earnings for Northrop Grumman in the second quarter of 1998, the company announced yesterday. The company earned $93 million in the quarter on sales of $2.1 billion, down from earnings of $108 million on sales of $2.2 billion in the same period a year ago.

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The U.S. Air Force and Raytheon yesterday completed the first flight of production T-6A Texan II Joint Primary Aircraft System Trainer with 1.8 hour mission.

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Raytheon Systems Co. won a contract from the U.S. Navy's Space and Naval Warfare Systems Command to provide Navy Global Broadcast Service-Shipboard Antenna Systems. Raytheon said yesterday that the initial contract is valued at $3.5 million for 14 years, and that additional options for 300 terminals could bring the value to $73.5 million. It said the next-generation satellite communications terminals will provide high bandwidth communications over the U.S. Navy UHF Follow-On (UFO) satellites and future satellite systems.

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Two top Pentagon officials briefed Rep. Curt Weldon (R-Pa.) on a plan to reclassify the 40 User Operational Evaluation System (UOES) missiles of the Theater High Altitude Area Defense (THAAD) program into test missiles, and to charge prime contractor Lockheed Martin for future test failures. Weldon, chairman of the House National Security research and development subcommittee, told The DAILY yesterday that he agrees with the approach.

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Aerospace/Defense Stock Box As of closing July 15, 1998 Closing Change UNITED STATES DowJones 9234.47 - 11.07 NASDAQ 1994.54 + 26.13 S&P500 1174.81 - 2.77 AARCorp 28.938 - .375 AlldSig 45.375 + 1.375 AllTech 65.500 + .375

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The Russian Air Force has performed an experimental long- range flight with a versatile formation of combat and support aircraft to demonstrate a new power-projection capability for the first time.

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Northrop Grumman is combining the Logicon Inc. units it bought last year with its existing Data Systems and Services Div. under the Logicon banner, and unlike similar defense-company combinations in the past, this one isn't expected to yield facilities cuts or job losses. Instead, the reshuffle is part of Northrop Grumman's efforts to "grow its information technology and services businesses," the company said yesterday in a prepared statement detailing the move. By 2002, Northrop Grumman expects sales to double in IT and services to about $2 billion.

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Aerospace/Defense Stock Box As of closing July 14, 1998 Closing Change UNITED STATES DowJones 9245.54 + 149.33 NASDAQ 1968.41 + 2.88 S&P500 1177.58 + 12.39 AARCorp 29.312 + .125 AlldSig 44.000 + .875 AllTech 65.125 - .125

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Lockheed Martin has teamed with Belgium's Delft Sensor Systems to build and sell the Close Air Support Integrated Targeting System, designed to allow air controllers to pass targeting information to aircraft or fire support systems.

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The Pentagon has set up an advisory council for the Defense Threat Reduction Agency to address congressional concerns about how the agency is being created. DTRA will absorb the functions of the Defense Technical Security Agency, Defense Special Weapons Agency, On-Site Inspection Agency, and nuclear, chemical, and biological weapons control issues formerly managed by the Office of the Secretary of Defense. The organization was established as part of the Defense Reform Initiative.

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General Atomics has completed the first relief-on-station demonstration of the Predator unmanned aerial vehicle, a U.S. Air Force pre-planned product improvement. The final flight in a series of missions to demonstrate the hardware and software for one ground station to control two Predators took place earlier this month from the San Diego company's flight test facility in El Mirage, Calif. The UAVs operated in the airspace of Edwards AFB, Calif.

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Litton's Electro-Optical Systems won part of a three-year contract from the U.S. Army's Communications-Electronics Command, Fort Monmouth, N.J., for production of night vision systems and image intensification (I2) tubes, Litton announced yesterday. Litton was awarded $18.9 million as part of a the Omnibus (OMNI) V contract. Raytheon got the other part (see related story on page 80). Litton will make Enhanced Third Generation Night Vision Devices and associated spares. Including all options, the contract value could exceed $196.5 million.

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Japan's National Space Development Agency (NASDA) is studying a 50-kilogram orbital testbed, measuring only 50 centimeters in each direction, that would fly into space as a piggyback on other payloads and conduct experiments designed to prove out new spacecraft bus technology. Dubbed m-Lab Sat, the hexagonal spacecraft would test: -- Triple-redundant on-board computers; -- Design technology for an integrated bus; -- Three-axis control technology for small satellites and

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BANNER AEROSPACE CORP., Dulles, Va., will buy up to 2.5 million shares of common stock of The Fairchild Corp. through open market purchases.

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Boeing Toronto and the Canadian Auto Workers union have renewed a three-year agreement. As part of an effort to position the Toronto plant for additional work, the new agreement was negotiated and approved on Friday, months before the current agreement was due to expire.

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NASA will boost its ability to stay in touch with Earth-orbiting satellites tomorrow when it opens a new Space Network ground terminal on Guam Island in the Pacific. The new facility will give the U.S. space agency "global, full-time and real-time" communications with spacecraft using the Space Network by linking geosynchronous tracking and data relay satellites that can't be "seen" by the Cacique and Danzante ground stations at White Sands, N.M.

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A Pentagon spokesman, responding to charges yesterday by Senate Majority Leader Trent Lott (R-Miss.) that sensitive U.S. technology has been transferred to China through launches of American satellites on Chinese rockets (see story beginning on page 73), said the Dept. of Defense been maintaining the necessary safeguards.

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Hughes Electronics Corp., El Segundo, Calif., earned $56.1 million on sales of $1.4 billion in the 1998 second quarter. In the same period a year ago, earnings from operations stood at $6.1 million, excluding a $318.3 million after-tax gain related to the PanAmSat merger, bringing profits to $324.4 million on sales of $1.2 billion. Operating profit of $78.2 million in the 1998 second quarter marked a 36.5% improvement over 1997's $57.3 million.

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NASA's baseline for the "Triana" whole-Earth-imaging spacecraft proposed by Vice President Gore is a Next Generation Small Explorer (SMEX- Lite) spacecraft launched with a Space Shuttle upper stage into a halo orbit at the Lagrangian point, with outside contributions and data-purchase arrangements explicitly encouraged.