Thursday, January 21, 2010

Royal Netherlands Air Force Selects AAI's Advanced Boresight Equipment for Two Helicopter Platforms

Defense News Updates ~ : HUNT VALLEY, Md.--January 20, 2010, (BUSINESS WIRE)--AAI Corporation, an operating unit of Textron Systems, a Textron Inc. (NYSE: TXT - News) company, announced today that the Royal Netherlands Air Force has selected its Advanced Boresight Equipment (ABE®) for aircraft harmonization on the AH-64D Apache Longbow® and CH-47F Chinook® helicopters.
ABE is a gyro-stabilized, electro-optical angular measurement system designed to align aircraft subsystems. Under these new awards valued at more than $1.8 million, AAI will deliver an additional ABE AH-64D Apache Depot Boresight System to align various sensor, weapon and sighting systems, as well as an additional ABE AH-64D Apache Maintenance Aircraft Survivability Equipment (AMASE) Boresight Kit for AMASE alignment. AAI’s ABE boresight solution has supported the AH-64D Apache for the Royal Netherlands Air Force since 2004.
In addition, AAI’s ABE system has been selected as the harmonization solution for the Royal Netherlands Air Force’s CH-47F Chinook aircraft survivability equipment. Under these awards, AAI will design, develop and deliver adapters, platform-specific firmware called a Personality Module, training and manuals.
“AAI is committed to creating reliable, cost-effective test solutions that provide confidence to warfighters. ABE is the boresighting solution of choice for dozens of platforms in several countries,” says Vice President of Test & Training Systems Robert Peters. “Not only is it a proven, accurate and repeatable resource, it minimizes harmonization time and required manpower. The Royal Netherlands Air Force will now use our common ABE Model 310A alignment system on both of these helicopter platforms.”

About AAI
AAI Corporation and its indirect wholly owned subsidiaries Aerosonde Pty Ltd and ESL Defence Limited design, produce and support industry-leading aerospace and defense products and services, including unmanned aircraft and ground control technologies; high-fidelity training and simulation systems; automated aerospace test and maintenance equipment; armament systems; and logistical, engineering, supply chain and operational support services. AAI Corporation is an indirect wholly owned subsidiary of Textron Inc. More information is available at

About Textron Systems
Textron Systems Corporation has been providing innovative solutions to the defense, homeland security and aerospace communities for more than 50 years. Known for its unmanned aircraft systems, advanced marine craft, armored vehicles, intelligent battlefield and surveillance systems, intelligence software solutions, precision smart weapons, piston engines, test and training systems, and total life cycle sustainment services, Textron Systems includes AAI Corporation, Lycoming Engines, Overwatch, Textron Defense Systems and Textron Marine & Land Systems. Textron Systems Corporation is an indirect wholly owned subsidiary of Textron Inc. More information is available at

About Textron Inc.
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. More information is available at

AAI and ABE are registered trademarks of AAI Corporation
AH-64D Apache Longbow is a registered trademark of Boeing Management Company
Chinook is a registered trademark of the Department of the Army

Investor Contact:

Doug Wilburne,401-457-2288
Bill Pitts, 401-457-2288
Media Contact:
Textron Systems Corporation
Sharon Corona, 410-628-3184
Michael Maynard, 401-457-2474

US Army's war budget includes big weapons orders

* Boeing, Sikorsky helicopters get funding
* Over 6,000 Humvees included

Defense News Updates ~ WASHINGTON, Jan 20 (Reuters) - The U.S. Army's proposed $9.3 billion war budget for Afghanistan includes significant funding for new helicopters, ground vehicles, missiles and ammunition, and upgrades to existing equipment, according to a Dec. 23 draft budget document obtained by Reuters.
Following is a list of major items included in the Army request, which is part of the $33 billion the Obama administration is seeking for emergency war funding in fiscal 2011 to pay for a major buildup of U.S. troops in Afghanistan:
-- $486 million in targeting and surveillance sensors built by Raytheon Co (RTN.N), the Base Expeditionary Targeting and Surveillance System
-- $751 million in orders for Family of Medium Tactical Vehicles, which would likely be built by BAE Systems Plc (BAES.L) under a bridge contract from its existing pact
-- $1.07 billion to rebuild and repair 6,670 existing Humvee trucks, work that would likely be done at military depots rather than benefiting any single contractor
-- $445 million in modifications to better protect existing Stryker vehicles built by General Dynamics Corp (GD.N) from attacks in Afghanistan
-- $105 million to replace three Boeing Co (BA.N) CH-47 helicopters that were damaged in Iraq and Afghanistan, as well as $47 million in modifications for CH-47 cargo helicopters
-- $199 million for modifications to the video feed capabilities of 288 AH-64 Apache helicopters, also built by Boeing
-- $187 million in orders for 15 new Kiowa Warrior helicopters built by Bell Helicopter, a unit of Textron Inc (TXT.N)
-- $190 million in Hellfire missile orders for Lockheed Martin Corp (LMT.N)
-- $113 million in TOW 2 heavy anti-tank missiles built by Raytheon
-- $188 million in orders for 418 Family of Heavy Tactical Vehicles built by Oshkosh Corp (OSK.N)
-- over $700 million in orders for ammunition, which would largely benefit Alliant Techsystems Inc (ATK.N) and General Dynamics
-- $159 million in high-frequency radios built by Harris Corp (HRS.N), and
-- $226 million in Warlock jamming systems built by ITT Corp (ITT.N).
The budget plan also includes significant funding to increase purchases of unmanned aerial vehicles, and to step up intelligence and surveillance efforts, according to the document. (Reporting by Andrea Shalal-Esa, editing by Gerald E. McCormick)

BAE Systems Unveils New Modernized Howitzer Vehicle For U.S. Army

Defense News Updates ~ YORK, Pa.--January 20, 2010, (BUSINESS WIRE)--BAE Systems today unveiled its upgraded PIM (Paladin Integrated Management) vehicle to military customers, Congressional representatives, community leaders and employees at a ceremony held at its York facility. PIM is the next generation howitzer in the M-109 Paladin family of vehicles, a combat proven weapon system manufactured by BAE Systems at York.
“The modernization of the Paladin is a critical step in providing the Army with a sustainable and supportable fleet of upgraded vehicles,” said Joe McCarthy, vice president and general manager of the Heavy Brigade Combat Team (HBCT) systems for BAE Systems. “The roll-out of our PIM system will ensure that the HBCT continues to have the premier Fire Support Platform needed to support the warfighter.”
BAE Systems was awarded a $63.9 million contract in August 2009 to produce seven PIM vehicles: five Self Propelled Howitzers and two Field Artillery Ammunition Support Vehicles. Today’s roll-out introduces the first of the seven vehicles awarded in that contract.
The PIM uses the existing main armament and cab structure of a Paladin M109A6 and replaces the out-of-date chassis components with up-to-date components from Bradley Combat Systems. PIM incorporates a state-of the-art “digital backbone” and robust power generation capability and integrates electric elevation and traverse drives, electric rammer and digital fire control system. The upgrade of the PIM ensures maximum commonality with existing systems in the Heavy Brigade Combat Team (HBCT), and reduces its logistical footprint and operational sustainability costs by replacing obsolete components within the mobility chassis.
The BAE Systems Paladin Integrated Management vehicle is the first production vehicle equipped with the company’s enhanced on-board power management capability, representing the first implementation of the U.S. Army’s Common Modular Power System (CMPS) requirement. BAE Systems enhanced on-board power management solution will double the electrical power of most military vehicles, exponentially increasing the mission effectiveness of ground forces in theatre.
Design and engineering analysis work for the vehicle structure, automotive systems and electric and vehicle electronics will be performed at the BAE Systems facilities in Pennsylvania, California, New York, Minnesota and Michigan as well as U.S. Government facilities at the Army Research and Development Center in Picatinny, New Jersey. The remanufacture for the Paladin fleet will be performed in partnership with the Anniston Army Depot in Alabama and at BAE Systems facilities in York, Pennsylvania and Elgin, Oklahoma.
About BAE Systems
BAE Systems is the premier global defense, security and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and customer support services. With approximately 105,000 employees worldwide, BAE Systems' sales exceeded £18.5 billion (US $34.4 billion) in 2008.

BAE Systems

Shannon Smith
Tel: +1 703-894-3545
Mobile: +1 703-967-3854
Susan Lenhardt
Tel: +1 301-838-6907
Mobile: +1 703-850-1621

US STOCKS-Wall St drops on China, IBM; eBay jumps late

* Manufacturers, commodity stocks fall on China concerns
* IBM sparks tech rout as 2010 forecast disappoints
* Dow, S&P 500 each off 1.1 pct; Nasdaq off 1.3 pct
* For up-to-the-minute market news, click [STXNEWS/US]
By Ellis Mnyandu
Defense News Updates ~ NEW YORK, Jan 20 (Reuters) - The Dow suffered its worst drop of 2010 on Wednesday as U.S. stocks succumbed to fears that China's curbs on bank lending might jeopardize the global economic recovery, while IBM's outlook sparked caution about the technology sector.
Chinese authorities have ordered some major banks to curb their lending over the rest of this month after an early burst of credit, banking industry sources said. For details, see [ID:nTOE60J09N].
Signals that China, the world's third-largest economy, may restrain its economic expansion hurt shares of natural resource companies, including Alcoa Inc (AA.N), off 2.5 percent at $15.23, and big manufacturers, with Caterpillar Inc (CAT.N), down 1.9 percent at $59.76.
The S&P materials sector index .GSPM fell 1.5 percent.
"This is really a direct result of concerns around the tightening of credit in China," said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey.
Although IBM posted a stronger-than-expected quarterly profit late on Tuesday, investors had misgivings about its guarded 2010 outlook, sending the stock down nearly 3 percent.
The Dow Jones industrial average .DJI tumbled 122.28 points, or 1.14 percent, to end at 10,603.15. The Standard & Poor's 500 Index .SPX fell 12.19 points, or 1.06 percent, to finish at 1,138.04. The Nasdaq Composite Index .IXIC dropped 29.15 points, or 1.26 percent, to close at 2,291.25.
The Dow suffered its largest daily percentage decline since late December, while the Nasdaq took its largest daily percentage loss in a week. It was the worst drop for the S&P 500 since Friday.
On Tuesday, the Dow and the S&P 500 ended at 15-month highs on bets the Democrats would lose a Senate seat. The S&P 500 is up 68.2 percent since bottoming out in early March 2009.
Earlier on Wednesday, the major indexes had dropped about 2 percent or more, but recovered some ground in the last hour of the session, thanks to some buying of bank stocks.
The latest earnings season picked up pace after the bell, when e-commerce company eBay Inc (EBAY.O) and coffee chain Starbucks Corp (SBUX.O) posted stronger-than-expected quarterly earnings. [ID:nN20152285]
Shares of eBay rose 4.6 percent to $23.25 in extended trade, after ending the regular session at $22.23 on Nasdaq. Starbucks shares jumped 3 percent to $24 in after-hours trading, after ending on Nasdaq at $23.29.
Still, in the regular session, shares of International Business Machines Corp (IBM.N), a major technology services company, ended down 2.9 percent to $130.25 as investors perceived that its 2010 outlook is pointing to a potential slowdown in profit growth. [ID:nSGE60J0I7].
IBM was the Dow's biggest drag, followed by energy company Chevron Corp (CVX.N), down 1.9 percent at $78.15. Diversified manufacturer United Technologies Corp (UTX.N), another Dow component, was down 1.2 percent at $71.43.
The S&P energy index .GSPE dropped 1.7 percent. A run-up in the U.S. dollar weighed on dollar-denominated commodity prices. U.S. February crude CLGO fell 1.8 percent, or $1.40, to settle at $77.62 a barrel.
The U.S. dollar index .DXY was up 1.1 percent against major currencies, helped by worries about Greece's ability to refinance its deficit.
On the Nasdaq, Apple Inc (AAPL.O) was the heaviest weight, down 1.5 percent at $211.725. Other tech bellwethers off 1 percent or more were Google (GOOG.O), Microsoft (MSFT.O) and Cisco (CSCO.O).
Investors count on emerging economies like China to underpin a nascent global recovery, so any restrictive policy there could be a setback for those that bet on a sustainable rebound and recently propelled the S&P 500 to 15-month highs.
Healthcare stocks, which led an advance on Tuesday on signs that a healthcare overhaul could face new hurdles in Congress, declined on Wednesday as some investors booked profits. The Morgan Stanley healthcare payor index .HMO lost 2.1 percent and an index of pharmaceutical companies .DRG dipped 0.3 percent.
On a busy earnings day for U.S. banks, Wells Fargo & Co (WFC.N) and U.S. Bancorp (USB.N) reported better-than-forecast quarterly earnings, helped by recent acquisitions, while a larger rival, Bank of America, got a boost from Merrill Lynch.
Bank of America (BAC.N), the top U.S. bank by assets, reported a wider-than-expected loss, but said its credit problems were beginning to stabilize. [ID:nN20148741].
U.S. Bancorp shares rose 2.1 percent to $25.01 and Bank of America gained 1 percent to $16.49. The KBW bank index .BKX rose 1.4 percent.
On the New York Stock Exchange, about 1.05 billion shares changed hands, below last year's estimated daily average of 2.18 billion. On the Nasdaq, about 2.39 billion shares traded, above last year's daily average of 1.63 billion.
Declining stocks outnumbered advancing on both the NYSE and Nasdaq by a ratio of about 3 to 1.
(Reporting by Ellis Mnyandu; Additional reporting by Rodrigo Campos; Editing by Jan Paschal)