Defense Business Brief: CEO on supply chain, vax mandates; F-35 engine fund? ; Aerojet merger delay; and more…


Two things were made very clear by the CEOs of America’s biggest defense companies when they announced their third quarter results this week: (or receive medical or religious accommodation).

“Looking specifically at 2022, we expect supply chain impacts to persist into the first half of next year with a recovery starting in the second half,” L3Harris Technologies CFO Jay Malave said on Friday. , when calling for company results.

Lockheed Martin, the world’s largest defense contractor, expects a year of decline in 2022, in part because of supply chain issues. This would be the first drop in income since 2013.

As for the vaccine mandate, read my new article to get a better idea of ​​the various complications and effects. As I write to you on this gloomy Friday in Washington, there are many questions about what the eventual layoff of thousands or tens of thousands of workers will mean for critical defense and national security projects.

Raytheon: The USAF is probably running out of funds for the 2nd F-35 engine. Raytheon Technologies CEO Greg Hayes doesn’t think the US Air Force will have the money to buy a new engine for the F-35 in the years to come. “I think it’s going to be a blow to think about putting a whole new paper engine on the F-35 in the short term,” he said on Tuesday. Raytheon’s Pratt & Whitney is competing with General Electric to develop a new engine for the F-35. These new engines will only fit the F-35A, the version used by the Air Force and the vast majority of allies, said Hayes, calling the timeline of 2027 or 2028 for the commissioning of the new power plant. ” Extremely aggressive ‘. Pratt’s F135 engine is already powering the F-35, so the company would benefit decades of sustainment work if the Air Force didn’t replace it. Pratt has a plan to add thrust and cooling to the existing engine, Hayes said.

Lockheed Martin’s acquisition of Aerojet Rocketdyne is not expected to close until Q1 2022, as the company awaits U.S. regulatory approval, CEO Jim Taiclet said on Tuesday. It was previously scheduled to close by the end of the year. Taiclet acknowledged increased scrutiny of mergers and acquisitions by the Biden administration. “Our approach to mergers and acquisitions has had to evolve because there is not a lot of supply in our industry when it comes to acquisition candidates of any size and a regulatory environment which is also changing a bit”, a- he declared.

It could take two years to close a sale of Abrams tanks to PolandGeneral Dynamics CEO Phebe Novakovic said on Wednesday. GD’s Land Systems division, which builds a multitude of armored vehicles, sees “an increase in demand signals from the Czech Republic, Romania, Denmark, Switzerland, Spain and of course the Middle East. Orient, ”she said.

Northrop Grumman predicts its space division will be the fastest growing segment of the company in 2022, CFO Dave Keffer said on Thursday. Projects intended to spur this growth include the Air Force’s Strategic Ground Deterrent System and efforts to replace the Minuteman III intercontinental ballistic missile with a new ICBM; the next-generation interceptor, which Northrop competes with Lockheed; and “several” classified projects, Keffer said.

Boeing earnings calls remain dominated by problems within its commercial activity, not to mention its defense activity. “Our markets for government services, defense and space remain large and relatively stable,” CEO Dave Calhoun said on Wednesday. “While increased government spending and the response to COVID-19 are adding pressure on defense budgets in some countries, others are increasing spending on their security. Overall, the global defense market remains strong and sustainable with all of our major programs. “

The recent plus-up recommended by three out of four Congress defense oversight committees “provide a certain degree of comfort that we should expect stability and military spending in the years to come.” L3Harris Technologies CEO Chris Kubasik said on Friday. “In my personal discussions with senior management in administration and Congress, I have constantly heard of a growing need for innovative, resilient and affordable solutions focused on delivery. “

Defense One

Some Republican lawmakers say the requirement will jeopardize national security.

CEO Jim Taiclet also said the company’s purchase of Aerojet Rocketdyne is delayed.

But CEO Greg Hayes says his business will thrive if everyone gets shot.

Lt. Gen. Groen admits the culture needs to change, but says faster development is already underway.

“Maybe the nuclear game has just changed,” one analyst said.

Beijing and Moscow are strengthening their strategic coordination with their armies.

Almost 30% higher probability of testicular cancer and about 25% of skin and prostate cancer, according to the most comprehensive military study to date.

The goal of the service on November 2 is almost a month earlier than that of his brother services.

Source link


Comments are closed.