R&D HIKE FAILS TO DAMPEN BOEING OPTIMISM
RESULTS Boeing remains bullish about its full-year results despite an unexpected increase in research and development costs for the 787 programme, after posting a $1.1 billion profit during the second quarter. The commercial aircraft division posted an 18% jump in deliveries and a 22% rise in revenue during the quarter, which reflected higher "operating leverage" and productivity improvements. Those gains are strong enough for the company to overcome the unexpectedly high R&D costs for the 787. Boeing spent $769 million on commercial aircraft R&D accounts during the second quarter, $243 million higher than the same period a year ago. For the full year, Boeing expects to spend up to $500 million more on R&D costs than previously thought and next year's planned R&D budget of $2.8-3 billion may also be too low, the company says. The company's Integrated Defense Systems segment announced a 3% increase in revenue based largely on an 8% increase in sales for its Support Systems division.
ELBIT EXPANDS UK FOOTPRINT WITH FERRANTI PURCHASE
ACQUISITION Elbit Systems has acquired UK aerospace and defence engineering company Ferranti Technologies, in a £15 million ($30.8 million) move intended to boost the Israeli firm's ability to secure business in Europe. "The acquisition is in line with our strategy of growth through mergers and acquisitions, and will significantly enhance our business base in the UK," says Elbit chief executive Joseph Ackerman. Based in Oldham, Greater Manchester, with 180 employees, Ferranti Technologies recorded sales worth £16 million in 2006.
EADS ASTRIUM WINS GERMAN VEGA CONTRACT
CONTRACT German aerospace centre DLR has awarded EADS Astrium, Bremen, a �500,000 ($692,000) 18-month contract for its Venus project that will examine upper-stage concepts for the European Space Agency's new Vega rocket. Vega, designed to carry 1,500kg (3,300lb) to low-Earth orbit, is being developed by the Italian Space Agency under contract to ESA. Its upper stage will have a Russian/Ukrainian propulsion system. Germany has not participated so far, but a decision maybe taken at ESA's next ministerial conference at the end of 2008 on whether Germany does participate in Vega's development.
RAFAEL TO SPICE UP GREEK AIR FORCE
WEAPONS Greece has launched negotiations with Rafael after formally selecting the Israeli company's Spice precision guidance system for use by its air force. Already in use as the Israeli air force's main stand-off weapon, the Spice system - which incorporates a deployable wing kit - enables a Mk 84 907kg (2,000lb) bomb to achieve a range of over 60km (32nm) and a Mk 83 450kg bomb to travel over 100km.
LATECOERE CONFIRMS AIRBUS SITE BID
RESTRUCTURING French aerospace manufacturer Latécoère has submitted a bid for Airbus's Meaulte and Saint-Nazaire-Ville sites. The Toulouse-based company says a successful bid will catapult it into the world's top six aerospace suppliers, with revenues of over �1 billion ($1.4 billion) by 2008. As part of its Power8 restructuring plan, Airbus identified Saint-Nazaire-Ville as non-core and suitable for divestment and sought a joint venture partner for Meaulte, which will play a key role in its transition to composite structures. Latécoère expects Airbus to reveal its decision in September.
Source: Flight International
