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Aviation History
1990
1990 - 1241.PDF
BUSINESS Tellep plans Lockheed survival BY NORMAN LYNN IN SUNNYVALE, CALIFORNIA Lockheed is looking to diversi-j fication and marketing to ensure its survival in its present form, whether from attack by corporate raiders or erosion from falling defence budgets. The bruising takeover battle between Lockheed and financier Harold Simmons, while it was decided in Lockheed's favour, has deeply shaken Lockheed chairman Daniel Tellep. He fears further takeover efforts by Simmons or others. Diversification is the best anti dote to unwanted takeovers, Tellep argues. He is concerned that Lockheed must diversify if it is to remain in existence. Tellep, former president of Lockheed Missiles & Space, says LMSC remains Lockheed's most profit- Italy backs Noel Penny research Noel Penny Turbines of the UK is to establish a £55 billion ($44 million) gas turbine research centre and manufac turing capability in Cosenza in southern Italy. The Italian Gov ernment last week agreed to back the venture. Noel Penny Turbines, which negotiated the deal through its Rome subsidiary NPT Italia, in tends to model the Cosenza site on its expanding operation in Coventry, England, manufac turing a family of aircraft, indus trial and marine gas turbines now under development at the UK site. The company says it picked Cosenza for the quality of the local workforce and the expertise of the city's university. The Ital ian government is providing an aid package consisting of a grant, loan and support for research and development. Staff now being recruited in Italy and the UK will be trained at Noel Penny Turbines' Cov entry site. About 150 people will work at Cosenza, scheduled to open in June 1991. • able and healthy operation, de spite shrinking US defence budgets and the sought-for "peace dividend" end of the Cold War. It also points the way for other Lockheed diversification. Diversification or conversion into other markets is not easy for US defence/aerospace con tractors, like Lockheed, that have 70% of total sales to the US Department of Defense. A few years ago, Lockheed attempted to diversify into manufacture of patio furniture. The experiment in conversion to consumer products failed utterly. Tellep aims to be wiser this time. "We are going to explore new initiatives that capitalise on our core skills. We'll try new pro grammes and seek new cus tomers," he vows. Tellep says he will continue to focus Lockheed resources on government sales such as NASA's Space Station Freedom and environmental sat ellites. He thinks that NASA's budget will rise as military spending falls. New marketing areas Lock heed has mapped out include software integration to US Gov ernment agencies such as the Treasury Department. LMSC has already taken an early lead in Lockheed diversification. It has disbanded its Com mand, Control, Communica tions and Intelligence (C3I) division, shifting those resources Daniel Tellep: "Lockheed must diver sify to remain in existence" to a new civilian and commerical systems integration unit, called Lockheed Integrated Solutions. LISC will focus on integrating hardware and software. Donald Latham has been named president. LISC comprises three operat ing units: • Formtek, Pittsburgh, Penn sylvania, an engineering drawing document management software company that Lockheed acquired in 1989; • Geographic Information Sys tems (GIS), Fairfax, Virginia, fo cuses on electronic document management for energy utility companies; 9 Complex Systems Applica tions, Santa Clara, California, targets office automation. CSA is competing for a potential $1.8 billion Treasury Department contract, and a $500 million Vet erans Affairs contract. D INTERNATIONAL Flight International needs a new staff photographer, following Janice Lowe's move to a new post on the magazine. Duties of the photographer embrace picture filing and picture research as well as photography. Applications for this challenging, London-based post, will only be entertained from people who satisfy the following requirements: 1) Extensive experience as a professional photographer (this means full-time employment in a staff or freelance position); 2) Proven experience in air-to-air photography; '• ;,; 3) Extensive experience in large-format, colour photography; vr 4) Physical fitness to satisfy armed forces fast jet standards; 5) Willingness to work long, hard hours in often demanding conditions. Written applications only, with full CV and a small representative sample of published work should be addressed to: The Editor, Flight International, Quadrant House, The Quadrant, Sutton, Surrey SM2 5AS. BUSINESS IN BRIEF MCDONNELL DOUGLAS Earnings in the first quarter of 1990 amounted to $2 million, representing an improvement over a $10 million loss in the same quarter last year. Sales were up, at $3.82 billion, from 1989's $21 billion. The combat-aircraft sector re ported substantially higher earnings, although this was counter-balanced by a large loss in transport aircraft and lower earnings in missiles, space and electronic systems. BAe AUSTRALIA British Aerospace Australia has formed a new company to concentrate on the local space industry. Space Logistics will specialise in the provision of operational and maintenance support services. UTC Pratt & Whitney was largely responsible for parent com pany United Technologies reporting higher first quarter •earnings. Net income was up '9% to $134.5 million from $123 million for the same [period last year. Sales were up $300 million to $4.8 million. The power segment—which iincludes Pratt & Whitney— :saw operating income grow to :$251 million from $179 mil- ilion, primarily due to higher ispare parts sales, lower re search and development spending and cost reduction efforts. Flight systems—prin cipally Sikorsky and Hamilton Standard—reported an $11 million loss against $12 mil lion profit last year. FR GROUP After-tax profits of £15.4 mil lion for 1989 were only marginally improved on the previous year's £15.1 million. Turnover was up at £153.8 million, compared with £131.6 million. A shortfall of towed targets and fuel system components and provision for the much-delayed develop ment phase of the Phonix re motely piloted vehicle for the British Army were largely to blame for the static profits, the company says. FLIGHT INTERNATIONAL 2-8 May 1990 I >
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