The Fifth Column Forum
Not logged in [Login - Register]
Go To Bottom

Printable Version  
Author: Subject: RAYTHEON, USA.
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 30-11-2017 at 10:53 AM
RAYTHEON, USA.


Classified projects boost Raytheon Missile Systems

29 November, 2017 SOURCE: FlightGlobal.com BY: Stephen Trimble Washington DC

Raytheon is investing in new buildings to house a rapidly growing workforce after the Missile Systems division recently won new contracts, including classified deals, a top executive says.

Investing in the new facilities is necessary because the Tucson-based Missile Systems unit is “literally busting at the seams” from an influx of orders, says Raytheon vice-president and chief financial officer Toby O’Brien.

“A lot of it is related to classified work,” O’Brien says.
The unit is seeing demand as concern grows over the improving capabilities of peer threats, says O’Brien, citing Russia and China as sources.

O’Brien’s remarks at the Credit Suisse Industrials Conference on 29 November come a few weeks after Raytheon first disclosed the classified contract awards for Missile Systems in a third quarter earnings report.

The new deal could cover a broad range of Missile Systems applications. The unit currently has a monopoly on the US military’s supply of air intercept missiles, such as the AIM-120 AMRAAM and AIM-9 Sidewinder. It’s also developing a new class of swarming unmanned air systems under a contract with the Office Of Naval Research. But the unit is also heavily involved in surface-to-air interceptors, supplying MIM-104 Patriots, plus SM-3 and SM-6 missiles for the US Navy.

Raytheon had participated in several projects several years ago to develop a next-generation air-to-air missile, including the US Air Force’s cancelled dual-role air dominance missile (DRADM) and the Defense Advanced Research Project Agency’s triple target terminator (T3) programme, which ended without any acknowledged follow-on.

Raytheon also is competing with Lockheed Martin to develop a long-range stand-off (LRSO) missile. The USAF awarded both companies about $900 million each in August to mature and de-risk certain technologies related to the new cruise missile, in advance of a planned down-select to one company to proceed to full-scale development.
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 27-3-2018 at 07:53 PM


Raytheon Targets Army Multi-Domain Systems Like DeepStrike

By Otto Kreisher [Sponsored by Raytheon]

on March 26, 2018 at 1:59 PM


Raytheon’s version of the Army DeepStrike missile system. Artist rendering

As the new National Defense Strategy shifts the U.S. armed forces’ focus from combating violent extremists to confronting China and Russia, Raytheon is offering an array of multi-domain capabilities to modernize the Army “not just for today but tomorrow,” Kim Ernzen, executive vice president of the company’s Land Warfare Systems, says.

Raytheon is particularly well positioned to meet one of Army Chief of Staff Gen. Mark A. Milley’s key priorities – improving the Precision Strike Missile (PrSM) capabilities, Ernzen adds.

The company already meets the Army’s needs for precision fires today, with its widely fielded Excalibur 155mm artillery round. “We just recently received another nearly $100 million contract to produce additional Excaliburs,” Ernzen says. “The Army definitely is using them in theater today, having great success with it. It’s a great weapon. It has GPS, has long range. Definitely a go-to projectile for the Army.”

As is the case with a number of Raytheon-produced ground combat weapon systems, “Excalibur is one that has seen significant plus ups,” she says. The recent contract is for about 1,500 projectiles and “we expect to see more late this year, going into ’19.”


Raytheon’s Excalibur N5 smart artillery shell

Raytheon also is working intensely to fill another of Milley’s top priorities, a guided rocket system with longer reach and greater capacity than the vintage Army Tactical Missile System (ATACMS), an improvement that is urgently needed to counter the long-range systems fielded by potential peer adversaries.

Army Gen. Curtis Scaparrotti, NATO’S Supreme Allied Commander and the head of U.S. European Command, told Congress March 8 that American forces would be “out-ranged and out-gunned” in a conflict in Europe, an apparent reference to Russia.

Raytheon is aiming to help them avoid that problem with its $116.4 million contract for the Army’s DeepStrike program. “It’s a competition between us and Lockheed Martin,” Ernzen says. “The whole purpose is to provide long-range capability.”

The Army wants a system that can reach out about two times ATACMS’ roughly 100-mile range.

“Right now, the thing that is really exciting is that it will absolutely attack the overmatch threat with maximum range,” Ernzen says. “And it will increase the lethality, the load out, because the currently configuration of ATACMS is only one round per pod. This will definitely increase their capability to be more flexible.”


Army HIMARS trucks launch GMLRS (Guided Multiple Launch Rocket System) missiles

ATACMS can be fired from either the heavy track-propelled M270 launcher, which holds two rounds, or the truck-mounted HIMARS launcher, which holds one rocket. DeepStrike’s requirements are to double that load and be compatible with the existing launchers.

Another requirement is the ability to hit moving targets on both land and sea, a key element of the multi-domain thrust.

“We’re ahead of our schedule. The first flight tests are scheduled for next year. We want to continue to push on speed to market, because that is one of the critical elements for the Army, being able to field that asset as quickly as possible,” Ernzen says.

Making the system more resilient and able to function in a denied environment is a key part of Raytheon’s approach. “That’s one of the biggest things that the Army is facing, since they’ve been at war for nearly two decades in a very different type of war. It’s been very limited. And as they start to look at this pivot that’s happening in Eastern Europe and going back into what we would consider more of a conventional war, they recognize that, unfortunately, they have to regain some of the advantages that they definitely had.

“We (Raytheon) continue to invest in some of these technologies to give us the ability to insert them into products, ones that are existing or that we are developing, to be able to address some of these key things that the Army — and specifically the chief of staff — are focusing on,” she added.

An example of that, Ernzen says, was Raytheon’s investments in improvements in their anti-tank missiles. “We continue to look at the warhead’s lethality, and address some of the countermeasures that are on those tanks. We’re investing in those kinds of technologies to enhance the lethality of the systems.”

“We’re always looking at seeker technologies” and better systems “to see the hidden areas of battlespace, and pick out the target better.”

An example of that latter goal is Raytheon’s development of a third generation FLIR sensor.

“What third-gen technology does, is combine a mid-wave and a long-wave infrared emission. It gives longer distances, to enhance the range of view that the sight can see from the vehicle.” That “helps attack the overmatch capability that we currently are seeing in the battlespace.”

Combining these two IR waves “enhances your lethality in the battlespace,” including improved adverse weather performance, she added.

Raytheon is under contract to deliver “the B kit,” which essentially is the eye of the FLIR sight that gives enhanced low-light capability to the commander’s primary sight and the gunner’s sight on the M-1 Abrams main battle tank, Ernzen explained. “This is really going after enhancing, or upgrading, this battlefield package on the Abrams.”

Ernzen noted that Raytheon is able to sell many of its systems to U.S. allies and partners, which “helps offset costs for the Defense Department, to help keep their contracts competitive.”
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 11-7-2018 at 09:55 PM


Raytheon laser technology makes US patent history

Geoff Fein, Washington, DC - Jane's International Defence Review

11 July 2018

Raytheon has received a US patent for technology to obtain real-time readings on speed and distance from the data stream created by laser radars. The patent marks the 10 millionth US patent issued.

The technology, invented by Joe Marron, an optical engineer for Raytheon, improves the ability of laser radars to identify and track objects. Laser radars use reflected light to measure speed and distance.

“This invention allows us to measure the amplitude and phase of light, and it is particularly useful with laser systems,” Morton told Jane’s . “By measuring the amplitude and phase, we can infer speed and distance, and that is very useful for many current applications.”

(134 of 390 words)
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 17-7-2018 at 07:06 PM


FARNBOROUGH: Raytheon JPALS landing aid nears serial production

17 July, 2018 SOURCE: FlightGlobal.com BY: Michael Gubisch

Raytheon intends to reach operational capability of its military joint precision approach and landing system (JPALS) this year, and start production in 2019.

The manufacturer has been testing the system since 2015 and earlier this year conducted landing trials with a Lockheed Martin F-35B Lightning aboard the US Navy’s amphibious assault ship USS Wasp.

Designed to facilitate precision approach guidance and automatic landing capability in all weather conditions, the system uses GPS signals in combination with gyroscopic equipment aboard the ship to feed data about the vessel’s movement into the approach path calculation.

All data is sent to the aircraft via an encrypted ultra-high frequency radio signal, and then processed by the aircraft’s on-board equipment.

The US Navy’s brief for Raytheon’s Intelligence, Information and Services division covers provision of a system for “current [F-35] and future aircraft”, business development director Wayne Scott tells FlightGlobal.

He says the manufacturer is evaluating options to employ the system for legacy aircraft, but notes that a certain level of computing capability is required by the aircraft’s onboard equipment.

Raytheon sees opportunities for further deployment beyond the US Navy. Scott says the manufacturer has had enquiries by the US Air Force and Marine Corps for a land-based system. A prototype has been developed, and Scott says he expects a trial to begin within a year.

He adds that the system could provide precision landing capability at an airfield within two hours, while installation of conventional ground infrastructure would typically be a matter of months.

Raytheon vice-president of navigation, weather and services Matt Gilligan says: “There are many fixed- and rotary-wing aircraft around the world and across the services that deploy to harsh, low-visibility environments where JPALS would be extremely valuable."
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 8-8-2018 at 03:38 PM


Raytheon builds massive radar development facility complete with robotic helpers

By: Jen Judson   14 hours ago


An automated guided vehicle brings parts and tools over to the robotic arm that helps build enormous SPY-6 radars in Raytheon's new state-of-the-art radar development facility, which officially opened in August 2018. (Courtesy of Raytheon)

ANDOVER, Mass. — Raytheon has built a new massive radar development facility — complete with robotic helpers — to assemble and test its newest radars, but the facility’s design will take the company’s radar work well into the future.

Meeting visitors at the door of the $72 million addition to Raytheon’s Andover, Massachusetts, radar production facility is a small square robot flashing purple light, offering a verbal welcome before scooting off to its docking station across the expansive room.

The Automated Guided Vehicle whisks past an enormous, yellow robotic arm that takes on a life of its own as it inspects the side of an array with a laser, chooses a tool and a part, and gets to work assembling a component.

Raytheon will build its AN/SPY-6 radars under contract with the U.S. Navy in the new facility. The company brought its first array under contract there in June, only 18 months after the company decided to begin the project to build the new 30,000-square-foot center.

The development facility was partly driven by Raytheon’s need to build its AN/SPY-6 missile defense radars. It needed a larger facility and near-field ranges to test and calibrate the large arrays.

“The physical size of those would not fit the new radars that we had to build, that we had won the contract for,” Sarah Jennette, Raytheon’s program manager for operations at the Andover facility, told reporters there Aug. 2.

“We knew we had to invest, so we figured if we are going to invest, we need to do it smart. We need to not just do it for the next year, two years, but for 10 years down the road,” Jennette added, “so really thinking big picture about what are we needing to meet our customer commitments as well as future development, and that is where the radar development facility comes in.”

Now the Andover facility can handle everything from the smallest component all the way through to testing some of the larger radars that Raytheon builds before they are sent out to the shipyards to be installed on vessels, Jennette said.

Creating the facility

Raytheon used virtual reality simulation and immersive design to figure out what it wanted and to create the perfect footprint for its development center. The company has its very own immersive design facility at Andover, just down a few long hallways, and even used avatars to assess whether a hallway felt too tight or if a piece of equipment was too close to a wall, for example.

The ceilings are 60 feet high, which is twice as high as Raytheon’s next highest bay used to assemble radars.

“It was built this way because we knew would have demands coming down the road and wanted to make sure we were not limited,” Jennette said. Now, for example, Raytheon can stack arrays to build larger arrays like its enormous sea-based X-band ballistic missile defense radar that is deployed in the Pacific.

And the facility has a 40-ton bridge crane that can span the entire assembly area and is capable of picking up arrays, flipping them and manipulating them, she said.

The production part of the facility has several tall towers with shelves that carry a few days worth of parts where the shelves move up and down to deliver parts onto a conveyor belt to the AGV robots that pick up the parts and deliver them to the robotic arm. When the robot is done with its job, it just returns to its docking station to charge much like a Roomba vacuum, Jennette said.

The facility is automated in other ways as well to include sensors that detect where tools are in the room at any given time and secure automated tool chests that track who has checked out a tool.

The new space is also home to a much larger AGV that allows a radar array to move about the facility with ease. An array will move roughly eight times during its production.

An array is normally placed on air palettes that requires precision accuracy done by hand using people with lasers. The effort can take days.

With a new lift that has enough capacity to hold 50 tons, the radar can be picked up and moved onto a mobilizer. The AGV locks into the mobilizer and uses laser navigation throughout the facility to drive it and park it within 3 millimeters of its target in just minutes.

Across from the robotic arm assembling the first production SPY-6 radar are the 38-foot double doors leading to Raytheon’s largest near-field test facility — now one of the largest in industry.

The testing room itself looks like a science fiction movie set. The room is 88 feet long, 50 feet wide and 52 feet high, and its walls and ceiling are lined with 92,000 blue foam cones to absorb sound and prevent external sound from penetrating the facility.

The test range has a 1.5-megawatt dedicated power substation capable of powering up to 1,500 homes, which will allow for future growth.

Underneath the floor of the range is a 5-foot-thick seismic mass that was poured over a 12-hour period using more than 3 million yards of concrete, which was then wet cured over 30 days.

The first radars in the room

The first SPY-6 radar Raytheon is assembling in the facility will go onto the Navy’s newest destroyer now being built. The destroyer Jack Lucas will join the Navy’s fleet in 2024 and will have four SPY-6 arrays.

The radar is 14-by-14 feet and is 70 times more sensitive than the current radar installed on Navy ships, according to Scott Spence, Raytheon’s director of naval radar systems, who spoke to reporters during a tour of the new radar facility.

This means it can see much farther and can detect targets much smaller, “so as threats get more difficult to track, this radar has the capability to go do that,” Spence said.

To assemble the engineering and manufacturing development SPY-6 radar that was fielded in Hawaii in 2016, all 37 of the radar module assemblies — each weighing hundreds of pounds — had to be physically picked up and put into place inside small blocks within the array frame.

Now, a robotic arm will be able to do all of that with no physical strain to a human — and with improved accuracy.

Raytheon went under contract to build 16 arrays for four ships in 2017 and will deliver the first part of the first radar to the shipyard at the end of 2019.

The Navy is planning to build two to three DDG Flight III destroyers each year, and the company anticipates building radars to support that production, Spence said.

Raytheon will be back-fitting new radars on existing destroyers as well.

But future business likely won’t stop there, Spence said. Following in the SPY-6 program’s footsteps, Raytheon also won the Enterprise Air Surveillance Radar program, which will put a smaller variant of the SPY-6 radar onto aircraft carriers, frigates and other vessels, according to Spence.

The same production method will be used on those radars as well and requires a simple reconfiguration of the robot, he added.
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 27-10-2018 at 12:25 PM


Raytheon results show positive third quarter

Andrew MacDonald, London - IHS Jane's Defence Industry

26 October 2018

Raytheon Company reported its financial results from the third quarter of 2018 on 25 October, showing year-on-year growth of both sales and profits. The company’s sales in the period rose by 8.3% to USD6.8 billion, while income was 12.4% up at USD644 million.

Performance improvement was not, however, uniform across Raytheon’s businesses. Its Intelligence, Information, and Services segment showed the fastest growth, with sales up 13% to USD1.7 billion and operating income 33% higher at USD149 million.

Missile Systems remained the largest of Raytheon’s operating segments, generating revenue of USD2.1 billion in the quarter. Despite this expansion, the business’s income contracted by 8% year on year.

(130 of 336 words)
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 6-3-2019 at 04:41 PM


Raytheon to Expand UK Operations by Opening Two New Sites

(Source: Raytheon Co.; issued March 05, 2019)

LONDON, --- Raytheon UK will open a new office in London and a high-technology manufacturing facility in Livingston, Scotland, as part of its continued investment in Britain to create highly skilled jobs and diversify its technology portfolio in cyber intelligence, security, aerospace and defence.

The new London office is expected to open in Spring 2019. It will host several of Raytheon UK’s functions, including cyber specialists to support government and commercial clients.

The 130,000-square-foot site in Livingston will provide Raytheon with a second, state-of-the-art high-technology manufacturing facility in Scotland. This new site will support operations in the design and manufacturing of power technology systems, and is expected to be operational within two years to serve customers in commercial and defence markets. The site adds to Raytheon UK’s Glenrothes facility where 700 people are already employed.

"As part of our continued investment in Britain, these new sites will support job creation and underscore Raytheon’s commitment to developing innovative new products and technical solutions for global markets,” said Richard Daniel, Raytheon UK CEO.

With facilities in London, Broughton, Waddington, Glenrothes, Harlow, Gloucester and Manchester, Raytheon UK is invested in the British workforce and development of United Kingdom technology. Across the country, the company employs 1,700 people and supports 9,000 jobs. As a prime contractor and major supplier to the U.K. Ministry of Defence, Raytheon continues to invest in research and development supporting innovation and technological advances across the country.

Raytheon Company with 2018 sales of $27 billion and 67,000 employees, is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions. Raytheon is headquartered in Waltham, Massachusetts.

--Raytheon UK is a significant employer across England, Wales and Scotland, employing over 1,700 employees and supporting a further 8,900 people in the U.K. supply chain.
--Raytheon’s total contribution to the U.K. economy in 2017 was over £700M.
--Raytheon’s heritage in Scotland dates back to the 1960's. The company’s contribution to the Scottish economy is estimated to be around £130m per annum, supporting over 1,000 jobs in Scotland.
--Working in partnership with local stakeholders, including West Lothian Council, Fife Council and Scottish Enterprise, Raytheon is looking forward to continuing its long-term diversification plan and contribution to Scotland’s economy and skills agenda.

-ends-
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 11-6-2019 at 11:38 AM


Raytheon and United Technologies Aerospace Businesses to Combine in Merger of Equals

(Source: Raytheon Co & United Tech.; issued June 09, 2019)

WALTHAM, Mass. and FARMINGTON, Conn. --- Raytheon Company and United Technologies Corp. have entered into an agreement to combine in an all-stock merger of equals.

The transaction will create a premier systems provider with advanced technologies to address rapidly growing segments within aerospace and defense.

The merger of Raytheon, a leading defense company, and United Technologies, a leading aerospace company, comprised of Collins Aerospace and Pratt & Whitney, will offer a complementary portfolio of platform-agnostic aerospace and defense technologies.

The combined company, which will be named Raytheon Technologies Corporation, will offer expanded technology and R&D capabilities to deliver innovative and cost-effective solutions aligned with customer priorities and the national defense strategies of the U.S. and its allies and friends. The combination excludes Otis and Carrier, which are expected to be separated from United Technologies in the first half of 2020 as previously announced.

The combined company will have approximately $74 billion in pro forma 2019 sales. With a strong balance sheet and robust cash generation, Raytheon Technologies will enjoy enhanced resources and financial flexibility to support significant R&D and capital investment through business cycles.

Under the terms of the agreement, which was unanimously approved by the Boards of Directors of both companies, Raytheon shareowners will receive 2.3348 shares in the combined company for each Raytheon share. Upon completion of the merger, United Technologies shareowners will own approximately 57 percent and Raytheon shareowners will own approximately 43 percent of the combined company on a fully diluted basis. The merger is expected to close in the first half of 2020, following completion by United Technologies of the previously announced separation of its Otis and Carrier businesses. The timing of the separation of Otis and Carrier is not expected to be affected by the proposed merger and remains on track for completion in the first half of 2020. The merger is intended to qualify as a tax-free reorganization for U.S. federal income tax purposes.

"Today is an exciting and transformational day for our companies, and one that brings with it tremendous opportunity for our future success. Raytheon Technologies will continue a legacy of innovation with an expanded aerospace and defense portfolio supported by the world's most dedicated workforce," said Tom Kennedy, Raytheon Chairman and CEO. "With our enhanced capabilities, we will deliver value to our customers by anticipating and addressing their most complex challenges, while delivering significant value to shareowners."

"The combination of United Technologies and Raytheon will define the future of aerospace and defense," said Greg Hayes, United Technologies Chairman and CEO. "Our two companies have iconic brands that share a long history of innovation, customer focus and proven execution. By joining forces, we will have unsurpassed technology and expanded R&D capabilities that will allow us to invest through business cycles and address our customers' highest priorities. Merging our portfolios will also deliver cost and revenue synergies that will create long-term value for our customers and shareowners."

Combination to Create Long-Term Value

-- Balanced and diversified aerospace and defense portfolio that is resilient across business cycles: The merger establishes a broad and complementary portfolio of platform-agnostic capabilities across the high-growth segments of aerospace and defense, reducing risk of concentration in any individual platform or program.

-- Highly complementary technology and R&D platform: With a combined annual company and customer funded R&D spend of approximately $8 billion, seven technology Centers of Excellence, and over 60,000 engineers, the company will develop new, critical technologies faster and more efficiently than ever before. Areas of joint advancement include, but are not limited to: hypersonics and future missile systems; directed energy weapons; intelligence, surveillance, and reconnaissance (ISR) in contested environments; cyber protection for connected aircraft; next generation connected airspace; and advanced analytics and artificial intelligence for commercial aviation.

-- Attractive financial profile with strong cash flow generation and balance sheet: Robust free cash flow growth and a strong balance sheet will support continued investment and return of capital to shareowners. The combined company expects to return $18 to $20 billion of capital to shareowners in the first 36 months following completion of the merger. As a result of the combination, the company also expects to capture more than $1 billion in gross annual run-rate cost synergies by year four post-close, with approximately $500 million in annual savings returned to customers. In addition, the combination presents significant long-term revenue opportunities from technology synergies.

-- Complementary company culture: The combined company will have a strong performance-based culture focused on integrity, collaboration, innovation, diversity and corporate social responsibility. Employees will have expanded opportunities for career development and advancement in high-growth areas, as well as ongoing engagement in local communities.

Pro Forma Business Structure

Raytheon plans to consolidate its four businesses into two businesses to be named Intelligence, Space & Airborne Systems and Integrated Defense & Missile Systems. The new businesses will join Collins Aerospace and Pratt & Whitney to form the four businesses of Raytheon Technologies.

Pro Forma Capital Structure

Net debt for the combined company at the time of closing is expected to be approximately $26 billion, with United Technologies expected to contribute approximately $24 billion. The combined company targets an 'A' category credit rating at the time of the closing.

Leadership and Governance

The combined company's Board of Directors will be comprised of 15 members, consisting of 8 directors from United Technologies and 7 from Raytheon, with the lead director from Raytheon. Tom Kennedy will be appointed Executive Chairman and Greg Hayes will be named CEO of Raytheon Technologies. Two years following the close of the transaction, Hayes will assume the role of Chairman and CEO.

Raytheon Technologies will be headquartered in the greater Boston metro area, and will retain a corporate presence in existing locations. The company will be led by a highly experienced, proven leadership team with a strong track record of innovation, delivering on synergies, and meeting financial and customer commitments.

Timing and Closing

The transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals, the approval of Raytheon and United Technologies shareowners, as well as completion by United Technologies of the separation of its Otis and Carrier businesses. As previously mentioned, the transaction is expected to close in the first half of 2020.

2019 Financial Outlook

There is no change to either Raytheon's or United Technologies' financial outlook for 2019.

Advisors

Citigroup Global Markets Inc. is acting as financial advisor to Raytheon, and RBC Capital Markets LLC provided a fairness opinion. Shearman & Sterling LLP is serving as legal advisor to Raytheon. Morgan Stanley & Co. LLC, Evercore, and Goldman Sachs & Co. LLC are acting as financial advisors to United Technologies. Wachtell, Lipton, Rosen & Katz is serving as legal advisor to United Technologies.

Conference Call

A conference call to discuss the merger will be held tomorrow, June 10, 2019 at 8:00 a.m. EDT. Participants will include Tom Kennedy, Chairman and CEO of Raytheon; Greg Hayes, Chairman and CEO of United Technologies; Toby O'Brien, vice president and Chief Financial Officer of Raytheon; and Akhil Johri, executive vice president and Chief Financial Officer of United Technologies.

Transaction Website

Additional information on the merger and related materials can be found on a joint transaction website: www.futureofaerospacedefense.com

Raytheon Company is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions. Raytheon is headquartered in Waltham, Massachusetts.

United Technologies Corp., based in Farmington, Connecticut, provides high technology products and services to the building and aerospace industries. By combining a passion for science with precision engineering, the company is creating smart, sustainable solutions the world needs.

-ends-
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 11-6-2019 at 11:58 AM


Why the new Raytheon Technologies will eschew platforms for new technology development

By: Aaron Mehta   4 hours ago


A DoD conceptual drawing of a hypersonic glide weapon. (Photo: Missile Defense Agency)

WASHINGTON Platform agnostic.
Its a term getting a lot of play from United Technologies CEO Greg Hayes and Raytheon CEO Tom Kennedy, in the wake of this weekends surprise announcement that the two companies would be merging into a new firm, known as Raytheon Technologies Corporation.

Neither company works as a platform producer, eschewing the production of aircraft or ground vehicles and instead focusing on the technology that makes them work. Its a business model that has produced well for both firms, and in a Monday interview with Defense News, the two CEOs made it clear they see no need to deviate now.

One of the first and foremost things we absolutely agree on is, we want to be platform agnostic, Hayes said, noting that UTC sold off its Sikorsky helicopter unit almost five years ago because we didnt like the programmatic risk associated with platforms.

Well supply all the content and all the systems, all of the offensive, defensive capabilities necessary to make the system successful, but we really think its important that we remain agnostic among the platform providers, Hayes added.

Said Kennedy, Neither of us essentially develop platforms or sell platforms. Why that's important is, really, the amount of capital that you have to go and spend in maintaining and creating these platforms kind of takes your eye off the ball relative to investing in technology moving forward. So that was a big feature, that both companies are platform agnostic.

Instead, both men said the new firm will remains focused on developing high-end technologies which can be inserted on, or in, platforms developed by the other major defense primes. With that goal in mind, the company is preparing to spend $8 billion in R&D funds in the year following its merger.

When the merger is completed in early 2020, Kennedy will become chairman of the board, with Hayes serving as CEO. Two years later, Kennedy will step down, with Hayes adding the chairman title.

One area Kennedy highlighted as having good synergies is hypersonic weapons, a major interest for the Pentagon. Raytheon has already been working on hypersonic missiles, including the guidance and control systems, but UTCs experience with propulsion and materials science might be able to help deal with a specific challenge for Raytheons weapon designers.

It just turns out when youre flying at Mach 5, you really increase your temperature on all your surfaces," Kennedy said. "If you have a propulsion system, the air is coming in at such a high speed, that creates a significant amount of heat; it has to be dissipated in a very efficient way, Kennedy said. And one of the areas that the United Technologies has, really based in the Pratt & Whitney guys, is all the technology that theyve developed over the years in working very high temperatures internal to their turbine engines, he continued. So not only do they have, I would call it the heat management capabilities, but also the material science to go implement those.

Hayes identified two areas where shared R&D will have a near-term impact, and they underline the benefit of having a new company that will be roughly 50-50 defense and non-defense business.

The first is on aircraft control systems, where each company has technologies that can be brought to bear for the FAAs next-generation air traffic control networks. The second comes in the form of cybersecurity.

I think Raytheon is second to none as it relates to cyber, and we view this as a core competency that can benefit the entire commercial aerospace ecosystem, Hayes said. Not just the connected aircraft, which is probably the first order of business, but the whole ecosystem. How do you protect passenger data, how do you protect the equipment thats on the ground? How do you protect the airplane while its flying?

I think well see that shortly in the marketplace.
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 11-6-2019 at 12:37 PM


Will Trump Object to the Raytheon-United Technologies Merger?

By Marcus Weisgerber
Global Business Editor

5:25 PM ET


AP Photo/Bill Sikes

After an analyst said Obama-era opposition to consolidation had dissipated, Trump appeared to signal the opposite.

The proposed $74 billion merger of Raytheon and United Technologies would be the largest defense-related merger in decades. The deal would create Americas second-largest aerospace-and-defense firm by revenue, behind only Boeing.

From a purely defense perspective, the firm would be second-largest to Lockheed Martin.

The new firm, to be called Raytheon Technologies, would be based in the greater metro Boston area, perhaps not far from Raytheons corporate headquarters in Waltham, Massachusetts.

Executives expect the deal to close in the first half of 2020.

On Monday morning, President Trump appeared to compare the proposed merger to consolidation among American airplane manufacturers.

Theyve all merged in, so its hard to negotiate when you have two companies and sometimes you get one bit, Trump said on CNBC.

When I hear their merging, does that take away more competition? he said. It becomes one big, fat, beautiful company, but I have to negotiate, meaning the United States has to buy things and does that make it less competitive because its so already non-competitive.

Soon after Trumps comments, the companies CEOs also appeared on CNBC. Raytheon CEO Tom Kennedy and UTC CEO Greg Hayes. Kennedy, who would be the new firms executive chairman for two years, and Hayes, who would be CEO, played down potential for less competition in the sector.

Once [Trump] understands the benefits of this merger in terms of what its going to do to reduce costs to the government, what its going to do to improve technology of the U.S. and its defense profile and what its going to do for jobs in this country, I think hes going to be supportive, as he has been for both of our companies over his administration, Hayes said.

Said Kennedy: We are complementary. We are not competitive. I dont remember the last time we competed with them.

On a call with investment analysts on Monday morning, the CEOs touted their firms combined $8 billion of internally funded research and development, and said it would help the merged company win next-generation franchises and create more U.S.-based manufacturing jobs.

Wall Street analysts said the merger would create a more balanced defense/commercial company.

This could lead to a rising belief that defense needs to be paired with commercial, Citi analyst Jon Raviv wrote in a note to investors early Monday. Not so much to stabilize or diversify the portfolio, but to provide deeper pockets with which to invest in new capabilities & perhaps to drive new business models.

The merger would create an aerospace and defense conglomerate at a time when companies are simplifying their business, Moodys analyst Jonathan Root said.

[General and administrative] synergies are likely, with the potential for greater commercialization of technologies that the two companies research and development organizations will share across their separate commercial and defense product and service offerings, he wrote.

There is overlap in the two firms portfolios, Capital Alpha Partners analyst Byron Callan, wrote in a Saturday note to investors soon after the Wall Street Journal first reported the deal was in the works.

Both companies have communications business as well as imaging and infrared products, Callan noted.

Cowen & Company analyst Roman Schweizer pointed to overlap in command, control and communications; electronic warfare businesses, and positioning, navigation and timing. For the most part, these are competitive markets with both U.S and international competitors, he wrote Monday in a note to investors.

Callan does not expect the Pentagon to object to the merger, but said small divestitures might be needed.

In a different administration, there might be concern about the clout and influence of the UTX-RTN entity such concerns were belatedly raised on the LMT-Sikorsky deal, but we dont believe those views now exist in DoD, Callan wrote.

Pentagon leaders predicted a rush of mergers and acquisitions in 2011, a time when the Pentagon budget began contracting. Ash Carter, the Pentagons top weapons buyer early in the Obama administration, who became defense secretary at the end of the presidents term, was opposed to consolidation of top-tier defense suppliers.

In 2015, just before Lockheed Martin purchased Sikorsky from United Technologies for $9 billion, Frank Kendall, the Pentagons top weapons buyer, said the deal raised significant policy concerns even though the Defense Department did not object to the sale.

The Department of Defense is concerned about the continuing march toward greater consolidation in the defense industry at the prime contractor level, Kendall said at the time.

Ellen Lord, Kendalls successor, is engaging with industry leadership to understand the implications and governance as a result of this acquisition, Lt. Col. Mike Andrews, a Pentagon spokesman, said in an email Monday. We look forward to working with Raytheon Technologies Corps. to provide the best capabilities our warfighters deserve, at the greatest value to the taxpayer.

In October 2018, Lord, the undersecretary for acquisition and sustainment, touted a new process where as soon as we know about [a merger or acquisition] we go out with a data call to all components [and] all services.

We take a look at that and if there are any concerns, we work closely with either FTC or DOJ, she said. [I]f there is a concern then we have consent decrees and deal with that.
As for the Pentagons M&A policy: Basically, we like market forces to play out. Its by exception that we would intervene, Lord said.

Defense & aerospace mergers since 2015:

- February 2015: Harris announces it will acquire Exelis for $4.6 billion.
- July 2015: UTC announces it will sell Sikorsky to Lockheed Martin for $9 billion.
- September 2017: UTC announces it will acquire Rockwell Collins for $23 billion.
- September 2017: Northrop Grumman announces it will acquire Orbital ATK for $7.8 billion.
- October 2017: Boeing announces it is buying Aurora Flight Sciences for undisclosed terms.
- February 2018: General Dynamics announces acquisition of CSRA for $9.6 billion
- July 2018: Boeing announces deal to acquire 80 percent of Embraer for $4.2 billion.
- September 2018: SAIC announces it will acquire Engility for $1.5 billion
- October 2018: L3 Technologies and Harris announce they will merge creating a $16 billion firm.
- June 2019: UTC and Raytheon announce a merger to create $74 billion Raytheon Technologies.
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 11-6-2019 at 07:21 PM


BREAKING: Politicians, Analysts Sound Off on Proposed Raytheon-UTC Merger (Updated)

6/10/2019

By Stew Magnuson


Illustration: iStock

A day after Raytheon Corp. and United Technologies Corp. proposed its merger of equals, analysts and lawmakers sounded off on what would be a seismic shift in the world of defense contracting.

Most notable among them was President Donald Trump, who commented June 10 on a CNBC show.

When I hear they are merging, does that take away more competition? It becomes one big, fat beautiful company, but I have to negotiate. Meaning the United States has to buy things. Does that make it less competitive? Because its already noncompetitive, he said.

Raymond Jaworowski, senior aerospace analyst at Forecast International, a Newton, Connecticut-based consultancy, said, If you look at the two product lines, there is not a whole lot of overlap. Its a very good match.

Richard Aboulafia, vice president of analysis at the Teal Group, agreed. If you come up with two names in the aerospace industry that have exactly nothing in common aside from the fact that they're domiciled in New England this is it. He doubted there would be much opposition to the merger.

Matt Vallone, an analyst with Avascent, said the administration historically has not stood in the way of big defense mergers. "These things can be hard to predict but so far the Trump administration and Congress haven't shown much concern over other recent consolidations."

One motivation behind the merger was that contractors are being squeezed to lower costs, Jaworowski said.

On the commercial side, the two big manufacturers Boeing and Airbus are pressuring suppliers to cut costs. The same pressure is coming from the Pentagon, he added. Cost efficiencies are really what [defense officials] are looking for in terms of the awarding of future contracts, he said. Big awards such as the T-X trainer largely went to the low-cost bids, Jaworowski said.

Tier-one and tier-two contractors are looking to consolidate and diversify their businesses and at the same time putting efficiencies of scale in their own operations to meet lower cost targets, Jaworowski said.

United Technologies had already made plans to spin out their air-conditioning and elevator nondefense units and create another aerospace and defense business leveraging its acquisition last year of aircraft parts and subsystem supplier Rockwell Collins, which has since changed its name to Collins Aerospace.

As for the benefits for Raytheon, It might give them more competitive power in the long run, but that's not the same as bulking up, Aboulafia said. It gives them the various UTC components that go in military aircraft, jet engines and whatever else. It's not the same as bolting on a big defense unit.

Aboulafia said the merger may mark the end of an era. For years, pure-play defense primes have kind of overlooked commercial, [and now] all of a sudden, they're noticing that Boeing is winning a lot. And in part that's because of the financial flexibility that comes from huge commercial market growth and profits. ... That to me is the big takeaway. ... The days of going it alone in defense might be coming to an end. This might be the signal of that.

Vallone agreed: "This would seem to be in line with a trend towards defense and commercial recombining. While there has been a clear split between the two for quite some time, robust growth of the commercial aerospace market over the past two decades ... creates an environment where defense and commerical aerospace activities may return to living under one roof."

Chairman of the House Armed Services Committee Rep. Adam Smith, D-Wash., told reporters June 10 that he hadnt thought through the implications of the proposed merger, but was concerned when it came to making inroads with small companies with innovative ideas.

I think the more important part of that is to make sure that we reach out to small businesses and small companies. I mean Raytheon and United Technologies were pretty big to begin with but there are literally thousands of companies across this country that are developing technologies that could be of use to the Department of Defense, he said, when asked if the merger might choke off innovation at lower tiers in the supply chain.

Tom Mullen, an analyst at PA Aerospace & Defense, said innovation will be a challenge in such a large organization.

"While the combined resources of the firm will be formidable, the spread across so many areas, the challenge of integration, and the legacy cultures of each will make it imperative to do something new around innovation, he said. If they do not manage to create an innovation culture they will struggle to sustain market share.

One positive is that the merger could create opportunities for the companies to offer broader systems, he said.

If they are very bold, they could add more capability to the Collins aerostructures business and offer new platforms, Mullen said. At minimum, there are significant opportunities to create cost efficiencies by consolidating manufacturing and corporates.

On the other hand, the companies cover a sprawling span of business areas and could require divestments of some assets, he added.

Carve-outs and sell-off of non-core businesses will add disruption on top of the big challenges of integrating such large and diverse companies, he said.

Vallone said, "From a defense perspective, the merger creates an impressive provider, capable of delivering a significant percentage of the systems going into aircraft and other platforms, be it sensors, propulsion or avionics." However, there are always potential pitfalls. "Merging two large companies is always fraught with risk. Its too early to make predictions about how well the integration will turn out, but the bigger question may be how platform providers on both the defense and commercial side will react to further consolidation in their supply chain."

Meanwhile, Jaworowski said the merger is bad news for Connecticut. While the companies announced that most of UTCs manufacturing jobs would remain in the state, its headquarters would move to Massachusetts, where Raytheon is located.

The perception has become in recent years that Connecticut does not have a great environment in which to do business from a tax point of view and a regulatory point of view," he said.

Rep. Rosa DeLauro, D-Conn., in a statement said: Workers in Connecticut will be my top priority throughout this merger. I will continue to work with state officials and our Congressional delegation to ensure critical aerospace and defense manufacturing grows in our state. Pratt & Whitney is a key player in the aviation industry and helps safeguard our national security. I am confident they will maintain that critical role, and I will press for a strong commitment to Connecticut and our labor force.

Additional reporting by Mandy Mayfield and Yasmin Tadjdeh
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 14-6-2019 at 02:02 PM


What Does UTC-Raytheon Deal Mean For Industry Consolidation?

Jun 14, 2019

Michael Bruno | Aviation Week & Space Technology

Lets Make a Deal

Greg Hayes had felt incomplete for years. After United Technologies Corp. divested Sikorsky Aircraft in 2015, UTCs chairman and chief executive thought thatdespite still owning Tier 1 commercial parts supplier UTC Aerospace Systems and leading engine-maker Pratt & Whitneyhis conglomerate needed more aerospace and defense heft.

Last November, UTC bought avionics and interiors leader Rockwell Collins and unveiled plans to spin off its Otis elevator and Carrier air-conditioning divisions so it could focus on aerospace and defense (A&D). But Rockwellnow part of Collins Aerospace at UTCwas not enough for Hayes, and he knew someone who could really help complete the picture.

- Suddenly the term merger of equals is in vogue again
- Insiders say they see robust deal-making continuing

In early summer 2018, as Hayes publicly mulled strategic alternatives for UTC, Raytheon Chairman and CEO Tom Kennedy called him with an idea. I think I did say, I know youre busy, but I need you to listen to us, Kennedy recalls.

The ideamerging post-spinoffs UTC with Raytheon to make what could be a commercial aerospace supplier and defense prime-contractor behemoth, second only to Boeing and rivaling Airbus in annual revenue at around $74 billionwas compelling.

Hayes listened on the phone and asked several questions. In late 2018, the two top executives reconnected to discuss who would take what position and other social issues like headquarters. In January 2019, they created respective merger teams, and on June 9 they unveiled their proposal.

The proposal caught off guard practically every financial analyst who covers A&D as well as rival executives, dealmakers and consultants. But it quickly won plaudits.

This one is smart because they are clearly different areas, Acorn Growth Companies Managing Director Rick Nagel tells Aviation Week. Its one of those where you see it after the fact, and you say, Yeah, that makes a lot of sense, continues Nagel, who cofounded and runs one of the few private equity firms to invest exclusively in A&D.



Under terms of the agreement, Raytheon shareowners will receive 2.3348 shares in the Boston-based combined company for each Raytheon share. Upon completion of the merger, UTC shareowners will own around 57% and Raytheon shareowners the rest on a fully diluted basis. For the first two years, Kennedy will be executive chairman, and Hayes will be CEO; then Hayes also will be chairman, the CEOs said June 10 in a public teleconference and live interviews on CNBC. The proposal was approved unanimously by the boards of directors of both companies.

Before the deal closes, Raytheon will consolidate its four current divisions into two: Intelligence, Space & Airborne Systems and Integrated Defense & Missile Systems. The two divisions will join Collins and Pratt to form the four divisions of the combined Raytheon Technologies. After the merger, Collins Mission Systems unit will go into the new Intelligence, Space & Airborne Systems, as will Raytheons current Forcepoint cybersecurity joint venture, the CEOs say.


An Excalibur N5 precision-guided projectile tested by the U.S. Navy in May at the Yuma Proving Ground. Credit: Raytheon

The complementary companies together will enjoy a balance of commercial and defense exposure, while still being focused in the same general sectoran emerging requirement on Wall Street now that multi-industrial conglomerates are out of favor.

Their product overlap is about 1%, maybe $750 million worth, and divestitures can be used to satisfy any regulatory concern, Hayes asserts.

Meanwhile, the merger is expected to result in increased research, development and engineering ability, accompanied by size-induced cost-cutting potential. Those are two major selling points that are directed at key goals of Pentagon officials. Total company and government-funded research at Raytheon Technologies could reach $8 billion and count seven technology centers of excellence and more than 60,000 engineers. Analysts, however, stress that the benefits of better R&D could be years off. Still, the combined company aims to reach cost-cutting synergies of $1 billion annually by the fourth year, returning half of it to federal customers under many defense contracts.

If ever there was a deal for the sake of size, this must be it, says Anita Antenucci, senior managing director at Houlihan Lokey. The emphasis on R&D as a rationale for such a scaled company presents a very clear data point of how the big defense companies have interpreted the Pentagon push for more innovation. The bigger the company, the more one can spread the independent R&D costs over a revenue base without it driving costs up beyond competitive rates, she tells Aviation Week.

Robin Lineberger, the global A&D leader at Deloitte Consulting, sees those and other trends from this deal and the pending formation of L3 Harris Technologies. For starters, mergers are becoming popular because they are more palatable than acquisitions.

But Lineberger and Scott Thompson, A&D leader at PwC, both caution that each deal becomes harder to line up.

Chronologically, there are fewer options, and they become more difficult. Its harder to consolidate among big companies without running into potential antitrust issues or Pentagon objections, or even customer concerns, Thompson tells Aviation Week.

UTCs Hayes concurs. Its hard to find complementary businesses in the defense space that dont compete in some way, shape or form, he says. Im not sure were going to see a lot more. Its not as simple as what we have here.


A glance across the floor at Pratt & Whitneys Middletown, Connecticut, facility. Credit: Pratt & Whitney

Still, many observers think there could be more merger-style, high-level consolidations to come. Lineberger tells Aviation Week he thinks A&D is midstream.

Analyst Myles Walton of investment bank UBS says the fact that Raytheon initiated the deal with UTC could be another clue of more interest in the marketplace. He and others note a popular investor theory that plateauing defense budgets in the near term may drive some defense companies to scale up via M&A.

Such deals bring growth or help get a company into one of the few large remaining defense programs that still are expected.

The idea that Raytheon approached UTC last summer is a little bit of a head scratcher, Walton says. Maybe there was another suitor involved at some point. If these two get together and it works, it totally sets up a rationale for another major aero getting together with a prime. Boeing has created the test case that this diversification is good through cycles.

Still there is an if. For starters, activist investor Bill Ackman, a major UTC investor, immediately lambasted the move to buy a large business of inferior quality. Ackmanwho has had a mixed record of investingsays he will oppose the deal.


A Collins Aerospace avionics testing rig. Credit: Collins Aerospace

Others look to competitive concerns. Numerous financial analysts say on a classic antitrust basis, the companies have good reason to believe their deal will be approved due to lack of overlap. Whether the Pentagon or White House blocks it over competition concerns in an increasingly consolidated A&D sector is another issue. While he expressed concerns over consolidation June 10, President Donald Trump also said he would only oppose the UTC-Raytheon tie-up if there were overlap.

Regardless of what happens at the top level, industry consolidation is powering on down below. Dealmaker Michael Richter of Lazard tells Aviation Week that M&A activity and interest in Tier 2 companies at the $250 million-1 billion range in annual revenue may never have been greater. We really are hitting on all cylinders on both commercial aero and defense, he says.

In commercial areas, engines, actuation technologies andin generaldivestitures of larger companies as they reshape their portfolios remain hot spots, he says. Aerostructures will stay weaker.

In the defense segment, Richter says hot spots remain UAVs; cyber; intelligence, surveillance and reconnaissance; and unmanned ships.

Looking past the Paris Air Show, dealmakers see lots more coming. Says Richter, There are some pretty large deals waiting in the wings.
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 27-6-2019 at 04:31 PM


Opinion: What The UTC-Raytheon Deal Says About Aerospaces Future

What the proposed UTC-Raytheon tie-up tells us about the industry

Jun 27, 2019

Steven Grundman | Aviation Week & Space Technology

Back to the Future

The mighty consolidation wave that swept over the aerospace and defense industry after then-Deputy U.S. Defense Secretary William Perrys Last Supper in 1993 is taking another turn.

The next inflection in the restructuring story is the proposed merger of United Technologies Corp. (UTC) and Raytheon to form what would be the third-largest global aerospace company by revenue, Raytheon Technologies. It is a stunning deal, marking a sharp change in our outlook on the markets and establishing a bellwether of new corporate-development plot lines to motivate the next chapter in the saga.

Announcement of the merger is a trailing indicator of several important changes in the industrys outlook. First, it underscores beliefs that U.S. defense spending is at or near its cyclical peak.

Against an outlook for sustained defense market growth, Raytheon would be well positioned to prosper by its existing structure and capitalization; alternatively, the company might have commanded a substantial premium for its shareholders while the going remained good. Instead, Raytheon sought out a merger of equals, and its stock has been largely unperturbed by the announcement.

Second, the merger reinforces indications that the so-called supercycle in the commercial aircraft business is winding down.

At both Airbus and Boeing, new orders are not keeping pace with deliveries, and backlogs are beginning to decline. Pratt & Whitney and Collins Aerospace, the residual UTC businesses that will combine with Raytheon, are overexposed to the cycle of commercial aircraft. The merger with Raytheon diversifies that exposure with putatively countercyclical military sales, resulting in a company deriving roughly half its revenues from each sector.


Greg Hayes UTC Chairman/CEO and om Kennedy Raytheon Chairman/CEO. Credit: UTC/Raytheon

Third, the capital deployment strategies of aerospace and defense firms are weaning themselves of their overreliance on share buybacks. While the companies recommitted to having Raytheon Technologies continue returning substantial capital to shareowners, the value story of the transaction is all about investing in new franchise technology platforms, as Pratt & Whitney previously has done with its geared turbofan family of engines and Raytheon with its gallium-nitride radars.

The merger also is a leading indicator of how the business of aerospace and defense will change over the next decade.

Sustaining competitive advantage in the U.S. defense market will require more private investment alongside government-funded R&D. The business model favoring pure-play defense firms is under threat, and the Raytheon Technologies merger is a response: The scale of the companys balance sheet and cash flow can accommodate big-bet investments on breakthrough innovations. This was the dominant message of the two CEOs pitch for the merger, and it rings true against the backdrop of recent Pentagon awards in which the winners up-front investments or willingness to bear back-end risk proved decisive.

Commercial aircraft suppliers will no longer abide bet-the-company projects, and diversification of end markets will form another line of defense against cost-cutting and risk-sharing imperatives. The ability to walk away is the ultimate leverage in any negotiation, and the merger with defense-focused Raytheon buttresses the hefty scale and scope UTC attained by acquiring Rockwell Collins, further strengthening its posture toward new projects like Boeings new midmarket airplane.

In an era of worrisome macroeconomic indicators, the uses of corporate development to shore up balance sheets will come into vogue. While the complementarity of the two companies capabilities and markets is being featured, it is the pairing of their capitalizations that as powerfully drives this transaction. As UTC Chief Financial Officer Akhil Johri put it in response to an equity analysts question about debt, Thats the big benefit of this merger as well, where the shareholders can see some immediate benefits without having to focus on deleveraging, which would otherwise have been the case for the [the residual businesses of] UTC.

The UTC-Raytheon merger is a salutary throwback to an era before 1993 when the capabilities and assets of commercial aerospace and defense firms were combined under iconic brands like Lockheed, British Aerospace, Goodrich, Hughes and even Raytheon itself. Raytheon Technologies expresses a back-to-the-future story line that begins to reintegrate our industry and reclaim the financial, technological and economic synergies that a more diversified portfolio can exploit.
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 29-6-2019 at 02:03 PM


United Technologies shareholder launches rebellion against merger with Raytheon

By: Aaron Mehta   9 hours ago

WASHINGTON A significant owner of United Technologies Corporation shares has issued a public broadside against the proposed merger with Raytheon, calling the move ill-conceived and unlikely to create value.

In a letter posted online Friday, Third Point LLC CEO Daniel Loeb said he would vote against the merger and urged other shareholders to push back against the proposed tie-up, which is expected to create one of the largest aerospace and defense firms in the world.

Loeb, through Third Point, owned about 8.4 million shares in the company as of February, according to Reuters. He has been a vocal critic of UTCs leadership in the past.

At the core of his argument against the merger is Loebs belief that Raytheon brings very little applicable technology to UTCs aerospace offerings, a contrast to statements from both companies at the announcement of the merger. The benefits of Raytheons cyber and data analysis capabilities are not quantifiable and could be replicated through commercial collaboration or supply agreements.

Loeb also throws doubts at financial projections, saying the paucity of financial details was peculiar and alarming. And he specifically questions the integrity of Raytheon CEO Tom Kennedy, noting that the person with the best information on Raytheons outlook eagerly decided to sell the company at no premium, even forfeiting his change-of-control compensation to seal the deal.

Since there is no strategic or financial rationale for this transaction, we can only conclude that the merger was motivated by empire building and [UTC head Greg Hayes] desire to extend his already long overdue tenure as head of a Fortune 100 Company, Loeb concluded. We have witnessed this form of corporate autocracy before, and it is rarely in the interests of shareholders for a Board to permit such behavior.

In a corporate statement to press, United Technologies said it does not agree with the conclusions from Third Point and essentially said the deal is done and will remain on track to close in the first half of 2020.

We have been advised by other shareowners that they recognize and agree with us as to the desirability of the merger, the statement reads. The United Technologies Board of Directors unanimously approved the transaction following a careful and thorough review process and remains confident that the merger will create a premier systems provider with advanced technologies to address rapidly growing segments of aerospace and defense, and create significant long term value for both companies shareowners.
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 9-7-2019 at 12:32 PM


National Security Concerns May Obstruct the United Technologies-Raytheon Merger (excerpt)

(Source: Seeking Alpha; posted July 07, 2019)

By Daniel Thurecht

-- Recently United Technologies and Raytheon have proposed to merge together in a massive deal far exceeding $100B.

-- Since the aerospace/defense industry is already very consolidated this deal will naturally face a high degree of scrutiny from government regulators.

-- Recently a senior member of the United States Air Force cast further doubt by stating that the industry's consolidation may pose a national security concern.

-- Given this concern as well as the push back from big-name investors I believe the prospects of this deal being abandoned are quite high.

Introduction

News of mergers and acquisitions normally draws in significant attention, especially when the value of the combined company exceeds $100B, such is the case for the proposed merger of United Technologies (UTX) and Raytheon (RTN). Deals of this size always face significant scrutiny by the governments anti-trust regulators as well as big-name investors who see few benefits.

Interestingly, in this case the merger has caught the attention of the United States Air Force, with a senior member responsible for equipment acquisitions expressing concerns that the defense industrys consolidation poses a national security concern. Ill provide my thoughts on topic as well as brief background information in this article.

Background Situation

Following the collapse of the Soviet Union in 1991 and hence the end of the Cold War, the defense spending of the United States was significantly reduced with many large programs scaled back, such as the B-2 stealth bomber. This naturally caused quite a degree of turmoil for the defense industry which was suddenly presented with a smaller pie that also had less slices, figuratively speaking.

One of the methods to deal with this peaceful yet financially undesirable outcome was to restructure through accelerating the rate of mergers and acquisitions that the industry had been going through since the end of World War Two. (end of excerpt)

Click here for the full story, on the Seeking Alpha website.

https://seekingalpha.com/article/4273760-national-security-c...

-ends-
View user's profile View All Posts By User
ARH
Super Administrator
Thread Moved
28-2-2020 at 12:23 PM
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 28-3-2020 at 02:45 PM


Raytheon, Quantum Imaging sign deal on SWIR capability for ISR

Carlo Munoz, Washington, DC - Jane's International Defence Review

27 March 2020

Quantum Imaging, a subsidiary of Israel-based infrared sensing and imaging company Semi Conductor Devices (SCD), has finalised a deal to supply Raytheon with short-wave infrared (SWIR) cameras and optical sensor packages for use on the companys product line of intelligence, surveillance, and reconnaissance (ISR) platforms.

The USD13.5 million deal, announced by Quantum Imaging on 25 March, will finance the procurement of SCDs Cardinal 1280 SWIR platform for integration on ISR products developed under Raytheons Space and Airborne Systems directorate. All work on that system and the Cardinal 1280 platforms under contract to Raytheon and the US Department of Defense (DoD) will continue to be conducted inside the United States, at Quantum Imagings headquarters in Colorado Springs, Colorado.

(142 of 438 words)
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 28-3-2020 at 03:32 PM


DOJ requires divestitures prior to Raytheon-UTC tie up

By Jon Hemmerdinger

28 March 2020

The US Department of Justice (DOJ) will only approve the proposed Raytheon-United Technologies merger if the companies divest some radio, optical and GPS businesses.

The DOJ on 26 March sued to block the deal in US District Court for the District of Columbia, but also proposed a settlement calling for the divestitures.

The government wants Raytheon to divest its military airborne radios business, which includes facilities in Fort Wayne, Indiana and Largo, Florida.


Source: Collins Aerospace
United Technologies subsidiary Collins Aerospace makes a host of commercial aircraft products, including landing gear systems.


UTC would need to sell its military GPS business to the US-based division of defence company BAE Systems, or to an alternative provider, says the DOJ.

Additionally, UTC must divest its optical systems business, including a site in Danbury, Connecticut, to a buyer approved by the US government.

Without these divestitures, the merger would eliminate competition between two of the primary suppliers of military airborne radios and military GPS systems to the Department of Defense, and enable the merged firm to lessen competition for multiple components used in reconnaissance satellites, the DOJ says.

Raytheon declines to comment about the DOJs conditions and UTC did not respond to a request for comment.

The companies previously expected the deal will close in the second quarter of 2020, according to a UTC security filing. As part of the proposed merger, UTC decided to divest its Otis elevator and Carrier air conditioning businesses.

UTC and Raytheon are the only firms that develop, manufacture and sell military airborne radios and the only competitors for military GPS systems for aviation and maritime applications, says the DOJ.

The agency also cites limited competition among companies that make military GPS technology for ground applications and those making components for space-based electro-optical/infrared reconnaissance satellites.

Without the divestitures, the merger would likely lead to high prices and less competition, it adds.
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 23-7-2020 at 12:28 PM


Raytheon UK Signs Contract with UK Ministry of Defence to Develop Advanced GNSS Anti-Jamming Technologies

(Source: Raytheon UK; issued July 21, 2020)

LONDON, England -- Raytheon UK was selected by the MODs Defence Equipment and Support office to develop a prototype system to exploit assured and resilient position navigation and timing information derived from Global Navigation Satellite Systems.

Under the contract, Raytheon UKs Assured Positioning Navigation and Timing business will deliver a Technology Demonstrator Programme, with advanced multi-element Anti-Jam technology, to prove the integration of the A-J with a next-generation multi-GNSS receiver to both accelerate and de-risk the availability of such systems to end users.

As a world-leader in the development, production and supply of analogue and digital anti-jamming systems to many of the worlds military forces, we are ideal partners to develop and evolve this critical technology with DE&S, said John Gallagher, Managing Director Weapons and Sensors, Raytheon UK.

GNSS signals are used by many critical infrastructure organizations and the technology has transformed the way we live our everyday lives; however, the GNSS signals are susceptible to interference, both intentional and unintentional, Gallagher said. The availability of low-cost jamming devices has meant that jamming is a constant threat.

The Technology Demonstrator Programme will take advantage of Raytheon UKs extensive A-J heritage and established capability in the development of reduced size weight and power technologies, including Landshield and Landshield Plus, to enable the fitment of GNSS A-J to a wider range of platforms. It will help mitigate the real, significant and increasing threat of satellite signal interference and provide a future solution that will protect our Front-Line Commands and Critical National Infrastructure.

UK industry has well established world-leader credentials in the design and development of small and compact anti-jam antenna systems. This initiative helps to maintain the UK at the cutting-edge of technology, said Rob Linham, Chief Engineer PNT at the Ministry of Defence. This technology demonstrator programme will help ensure our forces are able to operate effectively within challenging electromagnetic environments."

Raytheon Intelligence & Space provides a decisive advantage to civil, military and commercial customers in more than 40 countries around the world. Headquartered in Arlington, Virginia, the business generated $14 billion in pro forma annual revenue in 2019 and has 35,700 employees worldwide. Raytheon Intelligence & Space is one of four businesses that form Raytheon Technologies Corporation.

-ends-
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 17-9-2020 at 07:22 PM


17 SEPTEMBER 2020

Raytheon might sell more businesses

by Marc Selinger

Raytheon Technologies Corporation, which was created in April through the merger of Raytheon Company and United Technologies Corporation (UTC), is considering selling businesses that are not a good fit for the new US company, according to its top executive.


Raytheon Technologies is based in Waltham, Massachusetts. (Credit: Raytheon Technologies)

The divestitures would be in addition to the three businesses that Raytheon already sold to receive regulatory approval of the merger.

We will probably be looking at divesting a few of the other businesses around the margin that probably do not belong as part of Raytheon Technologies, Raytheon CEO Greg Hayes told investors on 16 September at Morgan Stanleys 8th Annual Laguna Conference.

One business that Raytheon has already slated for potential divestiture is its Forcepoint cyber-security firm. While Raytheon mainly builds defence and aerospace systems, Forcepoint focuses on protecting commercial organisations.

To meet regulatory requirements aimed at ensuring the merger would not stifle competition, Raytheon sold its military airborne radios business and its military Global Positioning System (GPS) business to BAE Systems. It also sold its space optics business to Amergint Technologies.

Hayes said Raytheon has no plans to conduct major acquisitions, though it would consider buying small companies that give it new technology.

With the portfolio that we have assembled here, we dont need additional heft to be successful and deliver scale, Hayes said.
View user's profile View All Posts By User
bug2
Member





Posts: 26126
Registered: 13-8-2017
Location: Perth
Member Is Offline


[*] posted on 26-10-2020 at 07:21 PM


Euronaval Online 2020: Raytheon displays its SPY-6 latest generation of air defense radars for modern warships

25 OCTOBER 2020

American company Raytheon displays new air defense radar SPY-6(V) for naval ships at Euronaval Online, the digital edition of Euronaval 2020, International naval defense and maritime security industry exhibition. The SPY-6 previously called AMDR (Air and Missile Defense Radar) is the latest generation of air-and-missile-defense radar designed to protect modern warships.


Raytheon AN/SPY-6(V) integrated Air and Missile Defense Radar (AMDR) fitted on a US Navy's Flight III DDG 51 Arleigh Burke-class destroyer scale model. (Picture source Navy Recognition)

The SPY-6(V) is a family of radars that will deliver significantly greater range, increased accuracy, greater resistance to environmental and man-made electronic clutter, advanced electronic protection, and higher reliability than currently deployed radars. It will provide integrated air and missile defense, and even periscope detection, for the Flight III Arleigh Burke-class destroyers.

The SPY-6 family is integrated, meaning they can defend against ballistic missiles, cruise missiles, hostile aircraft, and surface ships simultaneously. They provide several advantages over legacy radars, including significantly greater detection range, increased sensitivity, and more accurate discrimination.

The SPY-6 is available in four variants including the (V)1, (V)2, (V)3, and V(4). The AN/SPY-6(V)1 is a 4-sided phased array radar with 37 RMAs (Radar Module Assemblies). It is capable of simultaneous defense against ballistic missiles, cruise missiles, air and surface threats, as well as performing electronic warfare.

The AN/SPY-6(V)2 is a rotating and scaled-down version with 9 RMAs estimated to have the same sensitivity as AN/SPY-1D(V) radar while being significantly smaller. It is capable of simultaneous defense against cruise missiles, air and surface threats, as well as performing electronic warfare.

The AN/SPY-6(V)3 is a 3-sided phased array fixed version of the EASR, each with 9 RMAs. It has the same capabilities as AN/SPY-6(V)2.[17] Operating in S-band, it will serve as a Volume Search Radar complementing the AN/SPY-3 X-band radar on Gerald R. Ford-class aircraft carriers starting with John F. Kennedy (CVN-79).

The AN/SPY6(V)4 is a 4-sided phased array radar with 24 RMAs. Similarly to AN/SPY-6(V)1, it is capable of simultaneous defense against ballistic missiles, cruise missiles, air and surface threats, as well as performing electronic warfare Planned to be retrofitted on Flight IIA Arleigh Burke-class DDG.

In July 2020, Raytheon has announced the delivery of the first AN/SPY-6(V)1 radar array for installation on the future USS Jack H. Lucas (DDG 125), the U.S. Navy's first Flight III guided-missile destroyer. The SPY-6 family of radars performs simultaneous air, missile and surface defense on seven types of U.S. Navy ships.

Raytheon has planned to build 36 SPY-6 radar arrays in the next three years as part of low-rate initial production. The company is contracted with the U.S. Navy to deliver nine DDG-51 Arleigh Burke-class destroyer SPY-6 radar to Huntington Ingalls Industries, and Bath Ironworks in Bath, Maine.
View user's profile View All Posts By User

  Go To Top

Powered by XMB 1.9.11
XMB Forum Software © 2001-2017 The XMB Group
[Queries: 16] [PHP: 80.9% - SQL: 19.1%]