Public Prosecutor's Office has started an investigation into the Brazilian Federal Government deal with Saab (OMX: SAAB B) for 36 Swedish Gripen NG fighter jets. Folha de San Paulo writes that if irregularities are found, prosecution may seek cancellation of the deal. Of particular interest and much debate in Brazil is the difference in the final contract value of 5.4 billion USD signed in October 2014 and the initial offer from Saab of around 4.6 billion USD received in 2009.
Brazilian air force says the discrepancy is due in part because of currency rates, as the quoted rate was translated from SEK at the time, as well as additions such as wide-area display cockpit panel and flight simulators that weren't a part of the original offer. They are ready to provide any evidence needed for the maximum a year-long investigation.
Showing posts with label Saab. Show all posts
Showing posts with label Saab. Show all posts
Saturday, 11 April 2015
Monday, 30 March 2015
Important news for Saab-Boeing team in T-X program
Former fierce competitors Boeing (NYSE: BA) and Saab (OMX: SAAB B) have recently started partnering up on a number of projects. The anticipated lucrative USAF trainer bidding process is what pushed them to join forces. Overall the worldwide demand for lowering costs has led the industry to partner more and more on big military projects. Swedish aerospace and defence company is thinking of making big moves in the United States.
In the so called T-X program, the United States Air Force is expected to replace aging two-seat jet trainer T-38 Talon with an initial order of 350 planes that could be worth 90 billion SEK. Lifetime orders from the U.S. could approach 1000 jets and its allies would then be expected to make orders as well. The number of Talons built is 1146. It is unclear when a contract award would happen, but we should have some news by 2016 on when the proposals for the new jet are requested for.
The competitive landscape just had a big shift. Defense News reported that General Dynamics (NYSE: GD) chose to withdraw as prime contractor of the T-100, a re-branding of The Alenia Aermacchi M-346 Master, bid with Italian firm Alenia Aermacchi. Alenia, which is a subsidiary of Finmeccanica (BIT: FNC) had previously considered bidding as a prime contractor but it is considered rather unlikely that notoriously protectionist USA would choose another foreign venture to tackle such a mammoth deal alone, even if Alenia would do the manufacturing on U.S. soil.
Therefore Alenia is likely to try to land a new prime contractor/integrator. It sounds as if communication from the U.S. army on the requirement heard by Alenia and General Dynamics in the pre-bidding process required for more modifications. Overall there is now more talk with the industry beforehand on such deals so companies from bids that ed up losing could instead jump ship.
Other competitors are expected to be Talon maker Northrop, now Northrop Grumman (NYSE: NOC), Lockheed Martin (NYSE: LMT) and Korea Aerospace Industries KAI (KRX: 047810) consortium with their KAI T-50 Golden Eagle. Saab-Boeing and Northrop Grumman bids are clean-sheet design from scratch which would enable better adhering to changing requirements. Northrop Grumman was previously planning to submit BAE Systems Hawk.
Saab already has 200 people working on the project mostly with Boeing in St. Louis. As SvD Näringsliv points out, Saab already warned a year ago that costs from the project will be a drag on its results for now. A perceived increase in its chances to get the order therefore had a positive impact on the share price today. Saab and Boeing expect to be able to deliver an adaptable and affordable offer. This would likely mean a smaller plane that could undercut T-50 in costs.
KAI and by presumed extension Lockheed just got good news from South Korea, winning an order of over 7 billion Euros to develop a mid-level fighter for Republic of Korea air force. KAI beat out Korean Air Lines (KRX: 003490), which had European Airbus Military as a technical partner in a last-minute bid. South Korea is also buying PAC-3 missiles from the United States and launch-systems will be upgraded by Raytheon (NYSE: RTN).
In the so called T-X program, the United States Air Force is expected to replace aging two-seat jet trainer T-38 Talon with an initial order of 350 planes that could be worth 90 billion SEK. Lifetime orders from the U.S. could approach 1000 jets and its allies would then be expected to make orders as well. The number of Talons built is 1146. It is unclear when a contract award would happen, but we should have some news by 2016 on when the proposals for the new jet are requested for.
The competitive landscape just had a big shift. Defense News reported that General Dynamics (NYSE: GD) chose to withdraw as prime contractor of the T-100, a re-branding of The Alenia Aermacchi M-346 Master, bid with Italian firm Alenia Aermacchi. Alenia, which is a subsidiary of Finmeccanica (BIT: FNC) had previously considered bidding as a prime contractor but it is considered rather unlikely that notoriously protectionist USA would choose another foreign venture to tackle such a mammoth deal alone, even if Alenia would do the manufacturing on U.S. soil.
Therefore Alenia is likely to try to land a new prime contractor/integrator. It sounds as if communication from the U.S. army on the requirement heard by Alenia and General Dynamics in the pre-bidding process required for more modifications. Overall there is now more talk with the industry beforehand on such deals so companies from bids that ed up losing could instead jump ship.
Other competitors are expected to be Talon maker Northrop, now Northrop Grumman (NYSE: NOC), Lockheed Martin (NYSE: LMT) and Korea Aerospace Industries KAI (KRX: 047810) consortium with their KAI T-50 Golden Eagle. Saab-Boeing and Northrop Grumman bids are clean-sheet design from scratch which would enable better adhering to changing requirements. Northrop Grumman was previously planning to submit BAE Systems Hawk.
Saab already has 200 people working on the project mostly with Boeing in St. Louis. As SvD Näringsliv points out, Saab already warned a year ago that costs from the project will be a drag on its results for now. A perceived increase in its chances to get the order therefore had a positive impact on the share price today. Saab and Boeing expect to be able to deliver an adaptable and affordable offer. This would likely mean a smaller plane that could undercut T-50 in costs.
KAI and by presumed extension Lockheed just got good news from South Korea, winning an order of over 7 billion Euros to develop a mid-level fighter for Republic of Korea air force. KAI beat out Korean Air Lines (KRX: 003490), which had European Airbus Military as a technical partner in a last-minute bid. South Korea is also buying PAC-3 missiles from the United States and launch-systems will be upgraded by Raytheon (NYSE: RTN).
Thursday, 7 June 2012
Saab to make a public offer for HITT
Swedish aerospace and defence company Saab Ab (OMX: SAAB B) and HITT NV (AMS:HITT) said in a joint press release that Saab is intending to make a recommended public takeover bid for the Netherlands-based marine and aviation traffic management and navigation systems provider. The intended bid is an all cash offer of 6.60 Euros per share, a premium of 38% on yesterday’s close, valuing the company at approximately 29.7 million Euros. Altogether 73.6% of HITT shareholders have indicated they intend to accept the offer
Saab aims to become the leading global player in traffic management market and the combined entity will also have a complementary portfolio in Hydrography. HITT also has a global presence, with an office in Beijing and a foothold in India to name a few. The transaction is expected to have a small negative EPS impact for 2012 and 2013 and to swing on the plus side thereafter. Last year HITT ad revenues of 40.7 million Euros and reported a net profit of 3.4 million. At year end, it had 188 employees.
Saab aims to become the leading global player in traffic management market and the combined entity will also have a complementary portfolio in Hydrography. HITT also has a global presence, with an office in Beijing and a foothold in India to name a few. The transaction is expected to have a small negative EPS impact for 2012 and 2013 and to swing on the plus side thereafter. Last year HITT ad revenues of 40.7 million Euros and reported a net profit of 3.4 million. At year end, it had 188 employees.
Monday, 28 May 2012
Saab espionage claims
Swedish aerospace and defence company Saab AB’s (STO: SAAB B) President & CEO Håkan Buskhe reportedly told newspaper Svenska Dagbladet in an interview that he has been subjected what appears to be a case of industrial espionage. These claims relate to a decision by the Swiss defence ministry to choose to order 22 Saab’s Jas Gripen in a multi-billion deal over its competitors. Since then the preliminary order has been delayed at least until 2020 as various groups have voiced their opposition over the choice. The report has also drawn interest from Chief Public Prosecutor Tomas Lindstrand and the security police, who will now look into the data that the newspaper attained from Buskhe
Saturday, 10 March 2012
Military equipment making is big business in Fennoscandia.
Impartiality has not prevented Sweden from becoming the largest arms exporter in the world per capita. Even in absolute terms, Sweden cracks top ten handily. In per capita measurement, NATO-member Norway aided by multi-billion annual revenues of Kongsberg Gruppen (OSE: KOG) is not far behind at number 5.
The countries have rules preventing arms sales to war-going countries but there are times when they may end up in places of conflict via third-party actions. Any major deal typically needs to be signed into by the States. Attaining the permits has rarely been a problem but some deals, particularly the recent decision to assist Saudi-Arabia arms plant have come under public scrutiny.
Swedish aerospace and defence company Saab AB (STO: SAAB B) is among the top thirty in sales for arms-producing and military services companies in the entire world excluding China according to the SIPRI Top 100. It is responsible for almost 50 per cent of the total arms sales of Sweden. Most recently it was reported that Brazil may be closing in on an order for JAS Gripen fighters. Saab had been hoping to land a contract from India but the country chose another manufacturer.
Government documents such as Strategic Export Control in 2010 – Military Equipment and Dual-Use Products do provide transparency and insight regarding the industry in Sweden for those interested. Proponents in all Nordic countries argue that the role of the nations in peace-keeping mission is compromised by arms exports.
Finnish Patria became widely known when it was alleged on bribery in Slovenia. The company is a large player in a number of military fields with armoured vehicles being its most well known product. It also just makes the SIPRI Top 100.
Other firms such as ammunition manufacturer Nordic Ammunition Group or Nammo, niche observation and aiming aids provider Simrad Optronics Group, large military vehicles business BAE Systems Hägglunds, explosives and propellants maker EURENCO, catapult UAV launching system maker Robonic, firearm manufacturer SAKO and others provide further value.
In Denmark defence industry is not as large. There are only couple dozen smaller players involved in the field. Electronic warfare systems and other high-tech solutions for airborne and space industry provider Terma A/S and command & control, military messaging and electronic warfare software provider Systematic A/S are the most notable of those.
The countries have rules preventing arms sales to war-going countries but there are times when they may end up in places of conflict via third-party actions. Any major deal typically needs to be signed into by the States. Attaining the permits has rarely been a problem but some deals, particularly the recent decision to assist Saudi-Arabia arms plant have come under public scrutiny.
Swedish aerospace and defence company Saab AB (STO: SAAB B) is among the top thirty in sales for arms-producing and military services companies in the entire world excluding China according to the SIPRI Top 100. It is responsible for almost 50 per cent of the total arms sales of Sweden. Most recently it was reported that Brazil may be closing in on an order for JAS Gripen fighters. Saab had been hoping to land a contract from India but the country chose another manufacturer.
Government documents such as Strategic Export Control in 2010 – Military Equipment and Dual-Use Products do provide transparency and insight regarding the industry in Sweden for those interested. Proponents in all Nordic countries argue that the role of the nations in peace-keeping mission is compromised by arms exports.
Finnish Patria became widely known when it was alleged on bribery in Slovenia. The company is a large player in a number of military fields with armoured vehicles being its most well known product. It also just makes the SIPRI Top 100.
Other firms such as ammunition manufacturer Nordic Ammunition Group or Nammo, niche observation and aiming aids provider Simrad Optronics Group, large military vehicles business BAE Systems Hägglunds, explosives and propellants maker EURENCO, catapult UAV launching system maker Robonic, firearm manufacturer SAKO and others provide further value.
In Denmark defence industry is not as large. There are only couple dozen smaller players involved in the field. Electronic warfare systems and other high-tech solutions for airborne and space industry provider Terma A/S and command & control, military messaging and electronic warfare software provider Systematic A/S are the most notable of those.
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