THALES TARGETS US ACQUISITIONS
STRATEGY Thales North America is evaluating potential medium- and large-scale acquisitions to bolster its footprint in the USA, says chief executive Allan Cameron. According to Cameron, "moderate investment" in organic growth and takeovers could enable the business to double its revenue forecast for 2010 to $2.8 billion. However, the North American arm is competing for the necessary investment dollars against other divisions of the French company that are keen to exploit higher-growth markets such as India. Thales North America is officially ranked number 46 among US defence contractors but "we don't intend to remain at number 46", says Cameron. "We're hungry for acquisitions," he adds. Thales North America generated revenues of $1.1 billion in 2006, and employs over 3,000 people.
NORTHROP GRUMMAN SEES GROWING MARGINS
EARNINGS Northrop Grumman is looking ahead to increased sales and margins for 2007 after posting a 4% year-on-year increase in sales for the second quarter to $7.9 billion. Net income was up 7% at $430 million. "Year-to-date we are on track to generate higher sales, improved margin and higher earnings," says chairman and chief executive Ronald Sugar.
SAAB COMPLETES SOUTH AFRICAN PURCHASE
ACQUISITION Saab has completed its deal to buy 20% of Denel Saab Aerostructures after winning South African government approval for the purchase. Saab will have management responsibility for the company, which it says will compete internationally for design, manufacturing and assembly work in civil and defence aerostructures.
MTU RAISES EARNINGS FORECAST
OUTLOOK MTU Aero Engines is increasing its full-year earnings forecast after improved interim profits. The company has also named the chief of transport technology firm ZF Lenksysteme, Egon Behle, successor to MTU chief Udo Stark. The Munich-based aero engine manufacturer revealed an 8% rise in first-half revenues to €1.26 billion ($1.74 billion), driven by 11% growth in its original equipment manufacturer business. The group's commercial engine OEM activity enjoyed revenue growth of 12% to €545 million. MTU's commercial MRO revenues were up 3% in the first half to €505 million. Stark says: "We expect our year-end results for 2007 to reflect this continued growth trend, with significant contributions from the series production of commercial engines and spare part sales."
DAE TARGETS AUCKLAND AIRPORT
EXPANSION Dubai Aerospace Enterprise is seeking to buy a majority stake in New Zealand's Auckland International airport in a multi-billion-dollar deal. Publicly traded Auckland says its directors are unanimously recommending that shareholders agree to the deal, which would see DAE acquire 51-60% through a new company, Auckland Airport, in a deal valued at up to NZ$2.6 billion ($2.1 billion). The offer values the country's largest airport at NZ$5.6 billion.
STRONG Q2 BOOSTS LOCKHEED OUTLOOK
RESULTS Lockheed Martin is raising its forecast for full-year 2007 sales and earnings per share on the back of a strong set of results for the second quarter. Earnings for the quarter were up 34% compared with the same period a year earlier at $778 million on sales 7% higher at $10.7 billion. The company is now forecasting 2007 sales of $41.8 billion, against its April forecast of $41.4 billion.
Source: Flight International
