L-3 to buy Nova in $55 million deal
Transaction Defence electronics group L-3 is to buy communications specialist Nova for $45 million, plus a possible further $10 million dependent on its future performance. The transaction is expected to close in the third quarter of the year and give a slight boost to L-3's 2006 earnings.
Civil deliveries boost Embraer revenues
Results A rise in commercial aviation deliveries allowed Embraer to overcome a drop in military business to post an increase of over 25% in revenues for the second quarter. Commercial aviation revenues rose to $740 million, compared with $538 million a year earlier. Defence and government revenues fell from $116 million to $60 million. Embraer says the decrease is "mostly due to a lower number of aircraft delivered and lower revenue recognised from programmes subject to the percentage of completion method of revenue recognition". The company posted second-quarter net income of $139 million compared with $80 million in 2005.
HCL targets Europe for growth
Expansion Indian IT and product engineering specialist HCL Technologies is targeting the European market as it strives for organic growth. Work for European companies accounts for 26% of HCL's business, compared with 6% five years ago, and will grow further, says Rajeev Sawhney, corporate vice-president. HCL, on course for 2006 revenues of $908 million, is Boeing's preferred software partner on the 787. The company hopes for more work with aircraft manufacturers on software designed to provide more accurate estimation of engineering costs. "It's an area in which we think we can add strengths," says Sawhney.
MRO boosts Standard Aero income
Revenues Increased maintenance, repair and overhaul (MRO) work boosted Standard Aero's revenues by 17% to $200 million in the second quarter, compared with the same period a year earlier. Net income was $7.2 million compared with $3.1 million a year before. The company also resolved a dispute with Kelly Aviation Center that will see it continue as a subcontractor to the company on the US Air Force's T56 engine contract until 2014.
Cytec to produce polymers at new facility
Production Cytec Industries is to begin producing polymers for its engineered materials business at a recently commissioned $18 million facility. The polymers are a key component in the production of high-performance composites used in commercial and military aircraft manufacture. Cytec says it has begun the product qualification process with customers. "The new facility will boost and secure our supply of this critical system component," says Cytec Engineered Materials president Steve Speak.
Lockheed Martin boosts support presence
Acquisition Lockheed Martin is set to expand its presence in the support sector with the agreement to acquire Pacific Architects & Engineers, which specialises in facilities operations and maintenance and also provides logistics, air field and air terminal management services for the US Air Force, US Navy and United Nations.
Source: Flight International
