Ministers call for R&T spending increase

European Union defence ministers are calling for increased investment in research and technology, and are giving their support to proposals by the European Defence Agency for a new funding vehicle to achieve this. “The need for a step-change in European defence R&T performance is now clearer than ever. Collectively we are investing less than 1.5% of defence spending in the future of Europe’s defence technological base,” Javier Solana, head of the EDA, told its steering board meeting. The agency is also calling for increased collaborative projects. The board agreed that the new funding mechanism, to be managed by the governments participating in individual programmes, should be ready by the end of June to allow governments wanting to participate to set aside funds from their 2007 budgets. According to data collected by the EDA, its 24 members (all EU states except Denmark) expect to spend a little under €2.5 billion ($3.2 billion) on defence R&T this year, with only about one-tenth of the money going on collaborative projects in Europe.

DRS forecasts continuing revenue growth

US-based defence electronics manufacturer DRS Technologies is forecasting revenue growth of almost 70% to $2.9 billion in its next fiscal year after ending 2006 with an order backlog at an “all-time high.” The acquisition of Engineered Support Systems in the last quarter of 2006, as well as “record” 2006 revenues point towards 2007 being DRS’s “best year ever”, says chairman, president and chief executive Mark Newman. Revenues grew by one-third in 2006, to $1.74 billion, with organic growth accounting for about 13% and the acquisition of Engineered Support Systems in the fourth quarter accounting for the balance of the increase.

AD Aerospace completes purchase

UK-based aircraft video surveillance specialist AD Aerospace has completed its acquisition of Innovative Sensor Developments (ISD) for an undisclosed sum. Staff at the maker of video systems for military applications will continue to work for the company, but the two businesses’ design teams will work together on future projects, says AD Aerospace.

Currency fluctuations hit Embraer

Brazilian aircraft manufacturer Embraer saw its gross margin fall to 28.7% in the first quarter of the year on sales of $803 million, compared with 35.1% in the same period of 2005, as it suffered the adverse effects of the appreciation of the real against the dollar. The “learning curve” associated with its E-Jet range of aircraft also dampened its results, as it delivered more than double the number in the last quarter than in the first quarter of 2005, changing the product mix, says Embraer. Currency fluctuations also hit its operating income, which fell to $36.5 million, compared with $124.5 million a year earlier. The company ended the quarter with a firm order backlog of $10.4 billion.

Parker takes over Crane’s Resistoflex

US aerospace equipment manufacturer Parker Hannifin has acquired Jacksonville, Florida-based Resistoflex Aerospace, a division of the Crane Company. Resistoflex produces fluid connectivity and conveyance products and achieved sales of $16 million in 2005. Terms of the deal were not disclosed.

Source: Flight International