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Aviation History
2000
2000 - 0777.PDF
£JJJZJJ]JJZ2J£J Smiths identifies purchases as way ahead for expansion CHRIS JASPER/LONDON SMITHS INDUSTRIES says limited opportunities for merg ers in the avionics sector mean the growth of its aerospace business is likely to be achieved by expanding its burgeoning control systems interests through more bolt-on acquisitions funded by a £750 mil lion (Si.2 billion) war chest. The UK company says it is look ing for a "mega-deal" - but adds that, with the avionics sector consolidated around Sextant, Rockwell Collins and Honeywell, growth is more likely to come from a steady stream of modest pur chases in the less-focused non- cockpit-based systems sector. Even without more purchases, sales in Smiths' aerospace division - already slightly ahead of its med ical and industrial operations - are set to double by 2009 as building rates accelerate in defence pro grammes such as the Eurofighter and Boeing F/A-l 8 E/E Smiths' aerospace strategy envisages growth centred on its integrated utilities management capability, which offers centralised computer control of equipment not used for flying the aircraft. The recent acquisitions of the aerospace activities of Invensys and BAE Actuation Systems, together costingS278 million and bodi US- based, added mass to a control sys tems competency established with the takeover of power supplies spe cialist Leland years ago and aug mented by expansion into fuel management systems. Cockpit avionics are still core to Smiths' aerospace activities, but purchases in the sector have been modest. While control systems account for only 22% of aircraft- related aerospace sales, that figure is expected to rise as more purchas es are targeted. Smiths also wants to expand its environmental monitoring busi ness, centred on battlefield chemi cal agent detection specialist Graseby Dynamics of the UK, acquired for £100 million in 1998, and civil counterpart ETC of the USA, bought last year. Smiths aerospace group pro duced sales of £242 million in the six months to 31 January, with defence accounting for 60%, civil 20% (after a slowdown in deliver ies) a nd spa res 2 0 %. • French aerostructures pressed to consolidate performance last year and co-oper ate on A340-500/600 components. I Iurel-Dubois saw net profits leap by 31 % last year, to Fr69 mil lion ($10 million), although nacelles and thrust reversers remain its core activity, with just 18% of its Fr 1.8 billion sales (up 2 5 %) coming from aerostructures. The company has joined the A3XX programme as a risk-sharing partner, with a 2% stake. President Francis Avanzi wants to increase its North American presence, and is looking tor a 1Y40 million capital injection from shareholders to fund its "grow ing commitments". Latecoere has a 2.5% stake in A3XX development and derives 80% of sales from aerostructures, with 58% linked to Airbus. The company has a deal with Embraer to build fuselage sections and the doors for the ERJ-170 and -190 regional jets and, with other suppli ers, is bidding for work on the Bombardier BRJ-X. Latecoere's sales grew 15% in 1999 to Frl.22 billion, with operating profits up 21 %, to Fr71.8 million. • Thrust reversers remain at the centre of Hurel-Dubois' activities THE FRENCH aerostruc tures industry showed strong growth last year as Airbus Industrie, its key customer, contin ued to improve market share. But die sector is under increasing pres sure to consolidate as the airframer targets efficiency improvements ahead of the A3XX launch. Hurel-Dubois co-operates with Latecoere and Socata on Airbus components and, while Philippe Camus, president of Socata s par ent Aerospatiale Matra, insists the subsidiary is "not for sale", he stresses that consolidation is an essential step towards ensuring Airbus'competitiveness. Aerospatiale Matra has been in talks widi Latecoere over forming an aerostructures group, and dis cussions with Hurel Dubois have also taken place, although an industry source says: "There is still a long way to go." All three suppli ers benefited from Airbus' healthy PEOPLE ++ Gareth Kirkwood, managing director (MD) of British Airways subsidiary Brymon Airways, has been appointed MD of British Airways World Cargo. ++ Nor throp Grumman's Electronic Sensors and Systems sector has appointed four new vice-presi dents (VPs): Donald Wilhelm - airspace management systems, George Perkins - space sys tems. James Armitage - engi neering, Baltimore operations and John Chino - space-based infrared systems. Joseph Garone has been named director of engi neering for Northrop's airborne early warning and electronic war fare systems business. ++ Rock well Collins Government Sys tems has appointed Steven Nieuwsma VP engineering, Ron ald Hornish VP integrated appli cations and navigation systems and Gregory Churchill VP busi ness development. Bruce King has been named director of KC- 135 tanker aircraft programmes, focusing on the global air traffic management capability and Pacer CRAG upgrades. ++ Armando Sassoli is the new VP business development at US maintenance, modification and components spe cialist Precision Standard. He previously held the same position at Dee Howard Aircraft Maint enance in Texas. ++ London Luton Airport has appointed Simon Geere aviation general manager. He was previously group strategy manager for BAA Property. ++ Roland Bopp has been appointed VP for US wireless broadband provider, Astrolink, responsible for international busi ness development. ++ Douglas Solomon has been appointed chief executive officer (CEO) of parts supplier Compass Aero space, after the resignation of president and CEO Alexander Hogg. John Reimers has joined US-based Compass as executive VP and chief operating officer (COO). ++ Rob Sherrard, co- founder of Australian regional National Jet Systems, has been appointed deputy CEO and COO of start-up Virgin Australia. FLIGHT INTERNATIONAL 21 - 27 March 2000 33
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