Eurocopter Holding, a subsidiary of EADS, will acquire all of the issued and outstanding common shares of Vector Aerospace by way of a takeover bid at $13.49 in cash per common share. The offer values Vector Aerospace equity at approximately $648.7 million. Vector Aerospace provides both rotary-wing and fixed-wing maintenance, repair and overhaul services.
Despite a strong rebound in orders and deliveries, and despite being flush with cash reserves, the new year’s forecast for Europe’s EADS aerospace and defense group remains sorely lacking in one respect: it still can’t turn a decent profit.
EADS has decided to bid the A330MRTT for the U.S. Air Force KC-X requirement again, this time without a major North American partner. Ralph Crosby, chairman of EADS North America, said that the Pentagon had recognized EADS North America as a qualified prime contractor. Leaving Boeing as the sole-source bidder “harms the U.S. taxpayer,” Crosby added.
Helicopter manufacturer Eurocopter stayed in the black last year, with €263 million ($360 million) in pre-tax earnings, according to financial results released last week by parent company EADS, although its operating margin slid from 6.5 percent in 2008 to 5.8 percent last year.
A second copy of the Barracuda combat UAV demonstrator made four successful flights from Goose Bay, Labrador, according to EADS. The first Barracuda crashed on an early test flight in Spain in 2006. The demonstrator flew autonomously with monitoring from the ground station for safety purposes only, EADS said. The tests form part of the “Agile UAV in Network Centric Environment (NCE)” study commissioned by the German Defence Ministry.
At face value, Europe’s EADS group appeared to come off slightly worse than its U.S. rival Boeing from financial results announced in late July. EADS reported a 23-percent drop in operating profits for the first half of this year, compared with a 22-percent decline at Boeing over the same period.
The number of aircraft delivered in the first quarter of this year paled in comparison with the same period last year, according to numbers released this afternoon by the General Aviation Manufacturers Association, which cited the global economy’s effects on general aviation.
European Aerospace and Defense Systems (EADS) is the world’s second-largest aerospace and defense company (after Boeing).
EADS is going global, but not leaving its European roots behind. That message from the company’s management team reverberated this week as it forges ahead with restructuring efforts in a difficult economic climate.
The defense facet of Farnborough 2002 was focused on new technology to be deployed in the war on terror. Unmanned aerial vehicles (UAVs)–once an obscure sideshow–moved to center stage. Though confined to the static display line, Northrop Grumman’s Global Hawk surveillance platform–as proven in the recent Afghanistan conflict drew a lot of attention.