Your are here

Local navigation


Monthly Communications

BAE Systems Investor Brief - September 2007

08 Oct 2007

In This Month’s Brief:

GENERAL NEWS

MAJOR PROGRAMMES UPDATE

CONTRACT AWARDS THIS MONTH

GENERAL NEWS

BAE Systems is top Electronic Warfare company
The Journal of Electronic Defense (JED) magazine in August named BAE Systems the best electronic warfare company in the world over industry competitors such as Northrop Grumman and Raytheon.

The magazine’s selection considered major programs in the radio frequency and infrared counter-measures market. For E&IS, these included the Common Missile Warning System, the F-22 EW suite, and EC-130H Compass Call program and the ALQ-99 jamming pod program.

New Elgin facility
An inauguration event was held in August in Elgin, Oklahoma, to launch the BAE Systems Elgin Operations Facility. The new 150,000 square-foot facility is the site for the planned vehicle integration of NLOS-Cannon.

Back to Top

MAJOR PROGRAMMES UPDATE

Project Salam
BAE Systems has welcomed the agreement between the Kingdom of Saudi Arabia and the UK Government for the supply of 72 Typhoon aircraft to Saudi Arabia. This new defence cooperation programme, known as "Project Salam", builds on a long and successful relationship between the Governments and their armed forces.

Negotiations relating to the principal terms of the agreement have been successfully concluded and the signed agreement is expected to become effective in due course. This important milestone is consistent with our strategy to continue to develop Saudi Arabia as a key home market with substantial employment and investment in future in-Kingdom industrial capability.

F-35 mission system software
Military Air Solutions recently started development of the first dedicated mission systems software for F-35 to be produced in the UK. These activities mark the start of BAE Systems' involvement in critical elements of the mission systems capability of F-35, as the company has responsibility for the delivery of a number of the F-35 mission systems software packages including software associated with the integration of UK weapons (Paveway IV and Advanced Short Range Air to Air Missile (ASRAAM)).

‘First metal cut’ on Taranis
Military Air Solutions has successfully completed the ‘first metal cut' on Taranis - the UK's flagship Unmanned Combat Air Vehicle (UCAV) technology demonstrator - marking the start of the physical build of the aircraft at the Samlesbury site in Lancashire on 14 September.

As industry lead on the four year £124m UK MOD programme, BAE Systems is working with Rolls-Royce, QinetiQ and the Systems division of GE Aviation to produce a demonstrator that will make its first flight in 2010. The first metal cut on the programme follows the successful delivery of the initial autonomous systems design for the Programme Demonstrator in June.

Hybrid electric drive system for FCS
BAE Systems demonstrated the first hybrid electric drive system for ground combat vehicles as part of the U.S. Army's Future Combat Systems (FCS) program in Santa Clara on 15 August. The test marked a significant milestone in technological maturity of the hybrid electric drive system, and is the first evaluation of the complete Manned Ground Vehicle hybrid electric system consisting of the engine, generator, generator dissipater controller, traction drive system, energy storage system, and cooling subsystem.

The hybrid electric drive is the cornerstone of integrated power management designed to meet the demands of future ground combat vehicles in a networked environment while allowing the tailoring of power and cooling dictated by the mission.

More success on MRAP
Land Systems OMC, through its partnership with General Dynamics Land Systems Canada, has been awarded an order for the supply of 600 Category II RG31 Mk5E vehicles for the Mine Resistant Ambush Protected (MRAP) vehicle program for the US Marine Corps Systems Command. The vehicle is based on an extended version of the RG31 Mk5.

Half the vehicles will be manufactured by Land Systems OMC, with further manufacturing taking place at Demmer Corporation of Lansing, Michigan. Deliveries will be completed by the first quarter of 2008.

Double missile success
The Astute class submarines are on target to provide the Royal Navy with its principal strike capability, the latest version of the Tomahawk long-range attack missile. The “Block IV” version of the weapon, which can be re-targeted in-flight, and even send back images of the battlefield to boost intelligence gathering, has been successfully fired from the Trafalgar class submarine HMS Trenchant off the US coast.

Weeks later the first firing of an inert “Block III” Tomahawk Land Attack Missile from first of class Astute was successfully carried out in the wet quay basin at Barrow shipyard. This is the first in a sequence of inert weapon firings that will lead up to the launch of a flight capable TLAM missile from Astute at the US missile ranges.

Ambush milestone
A key milestone has been completed on the second Astute class submarine Ambush, with the shipping of the main propulsion machinery package (MPMP) – an achievement that marked significant progression over the first boat. Not only was unit 2, into which the module was shipped, more extensively outfitted, with almost 99 per cent outfit levels achieved, but the module itself had additional pipe work installed and tested before shipping, in line with build strategy.

Type 45 Programme
With six of the Type 45 destroyers at various stages of manufacture, a highly successful First of Class sea trials’ programme completed and a new Six Ship Contract in place to underpin the principles of partnership, the Type 45 programme is continuing to progress extremely well.

Back to Top

CONTRACT AWARDS THIS MONTH

Additional MSC contract
Norfolk Ship Repair has been awarded a contract by Maersk Line, Limited for the drydocking and preservation of the USNS Soderman (T-AKR 317), one of nineteen Military Sealift Command (MSC) Large, Medium-Speed Roll-on/Roll-off (LMSR) Ships. The 55-day work package will begin in mid-September, is valued at $9.3 million not including options, and includes maintenance and repairs to propulsion systems and machinery, and preservation of the vessel’s hull, tanks and topside areas.

Additionally, the contract includes ship security upgrades, ship-specific voyage repairs and general maintenance and repairs to machinery, valves, pumps, and structural components, along with electrical and piping systems.

Electronic warfare amplifier technology
E&IS is developing a new high-power amplifier technology to guard U.S. forces against radar-guided missile threats. Under the US$8 million contract from the U.S. Army Communications-Electronics Command with funding from the Defense Advanced Research Projects Agency (DARPA), E&IS will build a 160-watt solid-state, gallium nitride (GaN) power amplifier to more effectively aid warfighters by disrupting enemy communications and radar signals, while protecting friendly communications.

Successful demonstration of “FAST” waveform
BAE Systems has completed another successful demonstration of its Flexible Access Secure Transfer (FAST) networking waveform, as part of an US$8 million contract in conjunction with SRA International Inc., prime contractor for the U.S. Air Force Electronic Systems Center. FAST, an effort to modernize the NATO-standard Link 16 computer data exchange format, is a wireless networking protocol developed for airborne tactical networking.

Enhancements to mission planning framework
The US Air Force’s Electronic Systems Center, based at Hanscom Air Force Base, Mass., awarded Electronics & Integrated Solutions (E&IS) a US$3 million contract to refine requirements and improve the architecture of the current Joint Mission Planning System (JMPS) framework to enable network-centric operations on U.S. Navy, Air Force, and Marine Corps fixed-wing aircraft.

Night vision goggles for soldiers
Electronics & Integrated Solutions (E&IS) Infrared Imaging Systems (IRIS) was awarded a US$4.5 million contract to design and develop a digitally enhanced night-vision goggle that uses digital imagery to improve situational awareness in poor visibility environments. The helmet-mounted goggle combines video from a low-light-level visible sensor and an uncooled long-wave infrared sensor.

Radar warning receiver contract
BAE Systems Australia has signed an A$31M full rate production contract with the Australian Government for the ALR 2002 Radar Warning Receiver (RWR). The contract, which includes advanced orders, is for the supply of 31 RWRs as part of the Echidna electronic warfare self-protection system and will be fitted to the Black Hawk and Chinook rotary wing fleet for the Australian Army.

Contract for FALCON Increment C
Insyte has been awarded the contract for the FALCON battlefield information system, Increment C by the UK Ministry of Defence (MOD), with a value of more than £45m. FALCON will provide broadband-like voice, data and video communications around, and between, the UK Royal Air Force’s (RAF) large and widely dispersed Joint Operating Bases (JOB), which support ongoing operations and are used as forward mounting bases. It will also provide connectivity and long-haul communications to the UK and other strategic locations through interfaces to systems such as Skynet 5 satellites. The system, to be delivered in 2010, offers a substantial improvement in capability than that available through existing systems.

ADAPT support contract
The UK DE&S organisation has placed the most comprehensive complex weapon support contract yet with MBDA. The Air Defence Availability Project (ADAPT) contract, which is for the RAPIER FSC weapon system and is worth approximately £150M, became effective on 3rd September 2007 and covers 13 years of support in both peacetime and operations until the out of service date of 2020. It is expected to lead to savings for the customer of £175 million in whole-life costs.

Typhoon maintenance and upgrade contract
MAS and the Defence Equipment and Support (DE&S) organisation have taken another significant step towards establishing a partnered through-life availability support solution for the Typhoon weapon system with the signing of a £10.9 million, two year contract. The contract will deliver a 50% increase in on-aircraft maintenance and upgrade capability at RAF Coningsby to meet the demands of the expanding Typhoon force, and will establish an initial MAS maintenance presence on the RAF site.

Back to Top

Investor Contacts

Investors can contact our investor relations team with a query or request for further information.


Colophon