Qinetiq momentum carries on
results Qinetiq, the UK's former Defence Evaluation and Research Agency, whose controversial 2003 privatisation was last month criticised by the National Audit Office, improved pre-tax profits year-on-year by 9.3% to £25.9 million ($53.5 million) on revenue up 18.5% to £638.8 million for the six months to 30 September. Orders won during the period grew 12.9% to £592.2 million. In 2003 the UK Ministry of Defence sold 37.5% of the business to Carlyle for £155 million and 20% was made available to management and employees as an incentive scheme the top 10 managers invested £500,000 and received shares worth £107 million when the company was floated in 2006. NAO head Sir John Bourn says that while the UK taxpayer also gained from the flotation, "we think that the returns to management exceeded what was necessary to incentivise them".
Mitsubishi to make boeing 737 flaps in vietnam
Overseas expansion Mitsubishi Heavy is claiming a world first in moving aircraft-related production to Vietnam with plans to open a wholly owned subsidiary in Hanoi and begin assembling component structures in the spring of 2009. The move is part of a plan to shift metal component assembly work overseas and focus its Japanese facilities on higher value operations. Work will begin with 50 employees making Boeing 737 flaps, later expanding to about 200 workers.
BAE AND WIPRO team up for 'global' alliance collaboration BAE Systems and Bangalore-based IT solutions company Wipro Technologies are to work jointly on commercial aerospace projects including the design of subsystems for air transport and business jet markets and development of subsystems for aircraft engines. The firms will set up technical centres in Hyderabad and Bangalore, a move they describe as "the first step in a partnership that could see the two companies co-operating globally in the defence and aerospace markets". Some Wipro staff will be based with BAE Systems in the UK and USA.
Candover looks set to seal Stork deal
Takeover A group led by private equity firm Candover is to make a new €1.5 billion ($2.2 billion) offer for diversified Dutch industrial firm Stork, which owns Fokker Services, after lengthy negotiations brokered a compromise deal under which Stork will sell its food systems division for €415 million to Iceland's Marel Food Systems. Last summer, a Candover offer was withdrawn after resistance from Stork's largest single shareholder, Icelandic grouping LME Holdings, which includes Marel. A formal offer could be made later this month and the deal closed in January. Stork's aerospace businesses include aerostructures manufacturing and aircraft servicing.
Cobham buys meggitt's autopilot unit
Acquisition Cobham is to buy autopilot maker S-TEC from Meggitt for $38m cash completion is likely before year-end subject to regulatory approval. S-TEC, based at Mineral Wells airport in Texas and employing 180 people, designs, certificates and manufactures auto-pilots for general aviation aircraft, ranging from small, single-engined to light commuter aircraft for airframers including Adam, Cirrus, Eclipse, Pilatus and Piper, and also supplies the retrofit market. Cobham chief executive Alan Cook says: "S-TEC is an excellent technological and market fit in our development of a Cobham cockpit of avionics, with products from both companies certified together on more than 500 aircraft types."
Source: Flight International
