WASHINGTON (Reuters) – The Pentagon’s top manufacturing official expects a spate of merger and acquisition activity – and a doubling of efforts by foreign companies to take over U.S. arms makers – once the uncertain U.S. budget outlook becomes clearer.
Deputy Assistant Secretary of Defense for Manufacturing and Industrial Policy Brett Lambert told Reuters in an interview that prolonged uncertainty about U.S. military spending was stalling M&A deals, dampening investment and hiring by big defense companies. It takes an even heavier toll on their small-to-medium-sized suppliers.
WASHINGTON (Reuters) – The Pentagon on Tuesday announced it had reached agreement with United Technologies Corp (UTX.N: Quote, Profile, Research, Stock Buzz) to build 38 engines for a sixth batch of Lockheed Martin Corp (LMT.N: Quote, Profile, Research, Stock Buzz) F-35 fighter jets, securing discounts of 2.5 percent to 9.6 percent on the engines.
Pratt & Whitney, the engine-making unit of United Technologies, said it is targeting further cost reductions on the next two batches of engines under contracts that will be negotiated with the Pentagon in coming months.
WASHINGTON (Reuters) – Former Air Force Secretary Michael Donley will lead a major review of the Pentagon’s organizational structure aimed at cutting headquarters costs by almost $40 billion through fiscal year 2023, the Pentagon announced Tuesday.
Deputy Defense Secretary Ashton Carter told key Pentagon officials in a memo dated Monday that he had asked Donley and his team to submit findings and recommendations for Defense Secretary Chuck Hagel’s consideration by the end of September.
WASHINGTON (Reuters) – Pratt & Whitney, a unit of United Technologies Corp, has reached an agreement in principle with the Pentagon on a contract to build 39 engines for a sixth batch of F-35 Joint Strike Fighters, three sources familiar with the deal said on Monday.
The agreement – which Pratt had expected to reach over a month ago – is valued at more than $1 billion, said the sources, who were not authorized to speak publicly.
WASHINGTON (Reuters) – Pratt & Whitney, a unit of United Technologies Corp (UTX.N: Quote, Profile, Research), has reached an agreement in principle with the Pentagon on a contract to build 39 engines for a sixth batch of F-35 Joint Strike Fighters, three sources familiar with the deal said on Monday.
The agreement – which Pratt had expected to reach over a month ago – is valued at more than $1 billion (642 million pounds), said the sources, who were not authorized to speak publicly.
WASHINGTON (Reuters) – The United States on Friday was repositioning naval forces in the Mediterranean to give President Barack Obama the option for an armed strike on Syria, although officials cautioned that Obama had made no decision on military action.
A defense official, speaking on condition of anonymity, said the U.S. Navy would expand its presence in the Mediterranean to four destroyers from three.
WASHINGTON, Aug 23 (Reuters) – The U.S. unit of British
aerospace and defense manufacturer Meggitt Plc has
agreed to pay up to $25 million to resolve hundreds of possible
export control violations the company uncovered in a review of
operations dating back to the mid-1990s, the U.S. State
Department said on Friday.
It said the settlement was part of a consent agreement. The
State Department said it conducted a compliance review after
Meggitt disclosed multiple potential violations of U.S. export
control laws through shipments to India, China and other
WASHINGTON (Reuters) – Lockheed Martin Corp (LMT.N: Quote, Profile, Research, Stock Buzz) said it is close to an agreement with the Pentagon for a more portable and 40 percent cheaper version of the operations and logistics system that controls the F-35 fighter, the Pentagon’s most expensive weapons program.
Lockheed aims to finalize a contract with the Pentagon’s F-35 program office in coming weeks that will pay for development of lighter units to operate the new warplanes when they are deployed or based on ships, company officials told Reuters late on Wednesday.
WASHINGTON, Aug 21 (Reuters) – The U.S. government has
slashed its estimate for the long-term operating costs of
Lockheed Martin Corp F-35 fighter jets by more than 20
percent to under $1 trillion, according to a senior defense
official, a move that could boost international support for the
The Pentagon has been under pressure for over a year to
revise its estimate of maintaining a fleet of more than 2,000
F-35s over 55 years, with industry and military officials
arguing that many of the assumptions were outdated and off base.
WASHINGTON (Reuters) – Linda Hudson, chief executive officer of the U.S. unit of Britain’s BAE Systems Plc (BAES.L: Quote, Profile, Research, Stock Buzz), will retire early next year, the weapons maker said on Tuesday.
The company said it would start a search for a successor. Hudson, 62, joined BAE in 2007 and took over as CEO of the U.S. unit in 2009.