Data recently compiled by Bloomberg shows that ManTech, Northrop Grumman, General Dynamics and Lockheed Martin are among 9 companies that receive 70% of their revenue from the US government. Bloomberg also predicts that such companies have the most to lose from the recently announced budget cuts.
A Russian defense industry insider claims that China’s fifth-generation J-20 fighter may be be based upon the Mikoyan 1.44 rejected by Moscow during its tender to develop a stealth fighter.
Meanwhile Russia’s state-run Rosoboronexport reveals that it will sell $9 billion-worth of arms and equipment throughout 2011. One customer could be Venezuela, whose President, Hugo Chavez, today thanked Moscow for its help in re-equipping its armed forces.
The website Spend Matters UK/Europe reveals that the UK Ministry of Defence (MoD) is paying US consulting firm Alix Partners almost £4,000 ($6,500) per day to help find savings in contract negotiations.
Arguments over Israel’s defense budget continue, as the Defense Ministry accuses the Treasury of using defense expenditures to cover up its mistakes.
CACI International reports Fourth Quarter FY2011 revenue of $963.2 million, a 13.5% increase on the corresponding period for FY2010. The US Department of Defense (DoD) accounted for almost $780 million in revenue.
AEE Technology Co. becomes the first Chinese company to exhibit at AUVSI North America 2011. The company showcased its F50, an unmanned aerial vehicle (UAV) billed as capable of monitoring protests.
Russia’s state-run Rosoboronexport reveals that it has lost $4 billion-worth of defense export contracts with Libya.
Defense Secretary Leon Panetta tells the National Defense University that the United States can enact budget cuts without compromising national security.
Protests across Israel have prompted a rethink of defense expenditure plans. The Government is considering starting its five-year spending plan in 2013. Investment in training, missile and rocket interception systems are expected to compensate for troop reductions.
The Technical Director of the Marine Corps Warfighting Laboratory says at AUVSI North America 2011 that the US Marines see the AeroVironment Switchblade unmanned aerial vehicle (UAV) as a suitable armed platform for top-down attack capability.
The Commander-in-Chief of the Russian Air Force claims its re-equipment program is steadily progressing despite problems with delivery and funding. Col General Alexander Zelin added that Russia’s T-50 stealth fighter will be delivered by 2014-15.
China labels rumors that Pakistan’s Inter-Services Intelligence (ISI) agency provided access to the US Black Hawk stealth helicopter destroyed in the raid on Osama bin Laden’s compound as ‘groundless and ridiculous’.
A senior Russian defense official claims that the Sukhoi T-50/PAK-FA stealth fighter will be the ‘principal plane’ of the Russian and Indian Air Forces.
A new Pike Research report predicts that the military fuel cell market will reach $1.2 billion by 2017, an increase from $9 million in 2011.
Moscow’s MAKS 2011 air show has prompted a number of developments concerning Russia’s military and defense industry. Russia’s Air Force is expected to receive 450 helicopters this year, including the Kamov Ka-52 Alligator. The state-run United Aircraft Corporation (UAC) plans to provide the Air Force with 20 new aircraft a year. UAC is also keen on securing a contract to supply the military with 10 Antonov AN-124 freighters.
Elbit Systems’ Second Quarter 2011 Results show revenues at $691.6 million, as compared with $603.3 million for last year’s corresponding quarter. C4I and airborne systems were leading contributors to the increase.
Israel Aerospace Industries (IAI) is considering aerial refueling options for the upgraded version of its Heron unmanned aerial vehicle (UAV).
The DoD Inspector General’s internal audit of DARPA contract awards will likely pay close attention to business conducted with RedXDefense, a bomb detection company co-founded by the current director of DARPA.
Moody’s Investors Service predicts that the US debt ceiling agreement could result in a downgrading of defense contractors’ credit ratings. Major defense projects like the V-22 Osprey and Littoral Combat Ship (LCS) are identified as vulnerable to quantity reductions, deferrals and even cancellation.
EADS’ chief financial officer says the company will not be able to reach its target of $10 billion-worth of non-Airbus sales in the US by 2020 without further acquisitions.
CAE’s first quarter results for fiscal year 2012 report a 14 per cent increase in defense business revenue to $206.4 million compared with $181.8 million for last year’s corresponding quarter. However CAE’s President and Chief Executive acknowledges that the market outlook will become more challenging as governments evaluate their armed forces’ structures.
RSK-MiG and Sukhoi are to collaborate on the development of a future unmanned combat aerial vehicle (UCAV). The vehicle is expected to be modeled on the Skat UAV demonstrated at the MAKS air show in 2007.
The US Air Force awards Honeywell an $11.5 million contract to provide heat stack and brake components for F-15 fighters.
Enstrom delivers the first batch of 480B light turbine helicopters to the Royal Thai Army. The aircraft form part of a contract signed in 2010 for 16 480Bs, to be used for training purposes. Thailand is also getting set to receive 2 MH-60S maritime utility helicopters.
An internal audit of Ferrostal by American-based law firm Debevoise and Plimpton concludes that the firm paid R300 million (about $43 million) in bribes to South African politicians, including current President Zuma, as part of the U209-1400 submarine sale in 2000.
Raytheon has been selected by the Defense Advanced Research Projects Agency (DARPA) to provide support to its Anomaly Detection at Multiple Scales (ADAMS) project to understand ‘insider’ threats to information systems.
EADS’ Eurocopter subsidiary delivers 3 EC135 helicopters to the Japan Maritime Self Defense Forces (JMSDF).
The Brookings Institution think tank will hold a panel discussion on August 12 to analyze the impact of deficit reduction plans on US national security and foreign policy.
US Secretary of Defense Leon Panetta responds to the debt ceiling agreement by declaring that the Department of Defense’s spending choices must be based on sound strategy and policy and not result in the weakening of national security.
ThyssenKrupp releases a statement indicating that there are no plans to form a joint venture or merger between its Marine Systems division and the French shipbuilder DCNS.
EADS’ Airbus Military subsidiary signs a contract to supply Ghana with two C-295 turboprop transport aircraft.
USAF officials believe that they can save $15 million in energy costs by making some changes to the Kaiserslautern Military Community Center at Ramstein AB, Germany. The steps were actually pretty simple. Next step? Maybe solar on the KMCC’s 10 acres of roof.
President Barack Obama announces his intent to promote Ashton B. Carter from Under Secretary of Defense for Acquisition, Technology and Logistics to Deputy Secretary of Defense.
The House of Commons Defence Select Committee publishes its report on the UK’s Strategic Defence and Security Review (SDSR) [PDF]. The Committee rejects Prime Minister David Cameron’s view that the Armed Forces have a full spectrum of defense capabilities. Concerns are also raised that expenditure savings have overridden state security.
Japan’s Ministry of Defense (MoD) publishes Defense of Japan 2011. In the foreword [PDF] the Minister of Defense highlights China’s rapid military modernization and its increasing presence around Japanese waters.
An Indian Air Force (IAF) pilot was killed when his MiG-21 fighter crashed in Rajasthan. This takes the number of accidents involving MiG-21s to 25 over the past three years and reinforces concerns that India is struggling to keep its aging Soviet fleet airworthy.
Talk about your bad run for Army Aviation. An old Thai UH-1H crashed on July 16th, so they sent a UH-60 Blackhawk to recover remains etc. It crashed in challenging weather on July 19th. So they sent a UH-1N/212 twin-Huey. Which… crashed on the 24th. Toll: 17 dead and Thailand’s 54 UH-1N’s are now grounded.
Northrop-Grumman reports second quarter 2011 sales of $6.56 billion compared with $7.26B for the previous year’s period. Lower US Department of Defense (DoD) outlays among the factors identified as contributing to reduced quarter sales.
Meanwhile, General Dynamics’ Second Quarter 2011 Results saw revenues totaling $7.9 billion, a decline from 2010’s figure of $8.1 billion. Orders for defense materiel contributed to a total backlog of $57.1 billion across all the company’s products.
Rolls-Royce’s Half-Yearly 2011 Results reveal that underlying profit before tax is up by 28% to £595 million ($973 million). The engine-maker also benefited from one-off contract termination settlements resulting from the UK’s Strategic Defence and Security Review (SDSR).
BAE Systems is also confident that it has delivered a robust set of half year results in the face of challenging market conditions. The company reports headline sales of £9.2 billion ($15 billion), down from £10.6 billion ($17 billion) in 2010, and underlying earnings of £968 million ($1.6 billion).
Thales’ 2011 first half results show a 48% increase in underlying earnings in comparison with last year’s figures. However, defense and security orders declined by 3% over the same time period.
Russia test fires a RSM-54 Sineva submarine-launched ballistic missile (SLBM) in the Barents Sea. The SLBM was launched from the Yekaterinburg nuclear powered submarine.
A Filipino man is expected to plead guilty to trying to sell a US Government-owned RQ11-A/B Raven UAV for $13,000 on eBay.
The Vice Chiefs of Staff tell the House Armed Services Subcommittee on Readiness that a decade of conflict has eroded operational preparedness. Concerns were also raised regarding the impact of $400 billion worth of defense cuts upon equipment. A video of the hearing is available below in the extended part of this entry. DODbuzz summary.
Reports emerge that the UK Ministry of Defence (MoD) has spent almost £1 billion ($1.6 billion) on taxpayer-funded credit cards over the past four years. The news follows recent announcements concerning the reduction of UK troop levels.
Russian Prime Minister Vladimir Putin demands the prompt completion of the remaining 30% of contracts under 2011 state arms procurement program.
EADS’ Airbus subsidiary announces that it has made a bid to acquire Denmark’s Satair. Airbus has offered $504 million for the aircraft parts manufacturer and hopes to complete the acquisition in the third quarter of this year.
General Dynamics awarded a £110 million ($180 million) Bowman ComBAT Information and Platform BISA (BCIP) Sustainment Programme contract by the UK MoD. The contract will include the migration from BCIP 5.4 capability to BCIP 5.5 capability within two years.
The US Army awards MSE Technology Applications with a contract with a potential value of almost $23 million for basic research related to missile and space systems.
