Lambert says "There's a mentality of gorge and purge, and I think we're on the purge side right now" in the arena of U.S. industry consolidation. "Companies have to make it more clear to shareholders and the market what business they are in," he says. "Large conglomerates are having a difficult time enunciating that vision. I expect to see more specialty plays over the next year where people are shoring up their individual markets."
The Antonov design bureau will display its An-140 aircraft at this year's Paris Air Show, according to the Itar-Tass news agency. It said two of the planes have logged about 280 hours in 230 flight tests. A third is undergoing static tests, and assembly of a fourth is nearing completion with first flight planned for early spring. Antonov officials hope for a market of over 700 of the aircraft in the CIS - 90 in Ukraine, 460 in Russia and 170 in other CIS states.
British Aerospace is talking to Spain's CASA about a possible merger, a BAe spokesman says, but he adds that "we are ... talking to others in Europe" as well. "All the different major companies in Europe are talking. We're really all looking for a way to consolidate the industry in Europe."
Lockheed Martin's Sanders unit has completed a series of tests demonstrating the stability of special fins on the Fiber Optic Towed Decoy that will permit it to be trailed at high altitude by the U-2 aircraft. Sanders said yesterday that during two test flights in November from Lockheed Martin Skunk Works facilities at Palmdale, Calif., decoys showed exceptional stability.
Financial results from 1998 weren't as good as the U.S. aerospace and defense industry would have liked, and 1999 seems full of uncertainty, according to industry analysts. "We're in the doldrums in aerospace. There's no denying that," said Richard Aboulafia of The Teal Group, Fairfax, Va. "It's ironic that in terms of sheer business volume, we're not [in the doldrums]. ... [I]n profitability, [the industry] was weak. Part of that was restructuring, and part was competition.
United Technologies' planned $4.3 billion acquisition of Sundstrand could trigger movement by AlliedSignal as it tries to "shore up [its] place in the aerospace business," says Brett Lambert, vice president of DFI International. This could involve looking at overseas companies "that may offer some very attractive buys, particularly given depressed prices in Asia."
AlliedSignal Inc. filed a lawsuit Friday to block the proposed BFGoodrich-Coltec merger, a Coltec spokesman confirmed. AlliedSignal moved to block the combination on the basis of a teaming agreement it has with Coltec, claiming that the merger will undermine the agreement. AlliedSignal also said the merger presents anti-trust issues.
BFGoodrich (GR) Year 1997 Year 1998 Change Sales $3,373.0 $3,950.8 + 17 Operating income 113.2 228.1 + 102 Earnings 178.2 226.5 + 27 The Aerospace Segment contributed operating income of $386.4 million, up 48% from 1997, while sales climbed $300 million to $2.8 billion. In November 1998, BFGoodrich agreed to merge with Coltec Industries, a deal that is expected to be completed by early April.
Lockheed Martin Federal Systems will provide the avionics processor for the U.S. Air Force's U-2 aircraft under a 15-month Avionics Maintainability Program development contract, the company said yesterday. Lockheed Martin Federal Systems, Owego, N.Y., was chosen for the task by Lockheed Martin Skunk Works, Palmdale, Calif. The win marks the Owego unit's first role on the U-2. Federal Systems beat three other competitors - Lockheed Martin Control Systems, DY4 and Redstone.
The European Union may consider delaying a ban on huskitted aircraft, according to Stuart Eizenstat, U.S. under secretary of state. "There may be a possibility that the [European Union] Council will provide more time" before adopting a ban, Eizenstat said here Friday after meeting with EU officials. The EU Council of Ministers is scheduled to approve a regulation on March 9 which will prevent EU carriers from adding hushkitted aircraft to their fleets after April 1.
The European Commission, pushing its members to develop the Galileo satellite navigation system, notes that the U.S. Global Positioning System Block IIF satellite and a second civil frequency will be deployed over the next decade. "If Europe waits," it says, "the new Block IIF will reinforce the present GPS dominance and the market will have adopted GPS as the standard. Realistically, Europe could then play only a supporting role."
AVIALL, one of the largest independent distributors of new aviation parts, said it has retained Merrill Lynch to "assist the company in exploring possible strategic alternatives to improve shareholder value." Eric Anderson, chairman, said Aviall's operations "represent strong business with significant growth potential.
