Defense-industry consolidation may not be over yet

Article Abstract:

The consolidation that has taken place within the US defense industry since 1992 may not have come to end notwithstanding the surprising decision by Lockheed Martin Corp. to withdraw from its proposed $8.3 billion purchase of Northrop Grumman Corp. The Big Three defense companies, Boeing Co., Raytheon Co., and Lockheed, were created by the period of hectic mergers and acquisitions in the defense industry. Northrop's CEO is now considering future acquisitions that will allow the company to remain competitive. In addition, several other defense firms are believed to be seeking partners in order to become more effective suppliers to the Big Three.

Comment:

Consolidation within the US defense industry may not have come to end

Strategy & planning, Other Electrical Equipment and Component Manufacturing, Electronics

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Airbus to raise base price of aircraft by 3%, following Boeing's 5% increase

Article Abstract:

After Boeing raised prices 5% in July, Airbus now raises its base price on aircraft by 3%. The increase may be to help pay for development costs of new aircraft. For instance, Airbus is building a superjumbo called the A3XX, and the anticipated costs have gone from $8 billion to $10 billion. Airbus also announces plans for a 100-seat jetliner called the A318, a smaller version of the 124-seat A319.

Comment:

Airbus to follow Boeing's lead in raising prices across the board

France, Commodity & service prices, Business to Business, Airbus S.A.S.

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Northrop sees big revenue loss for 1999 due to Boeing cutbacks

Article Abstract:

Northrop Grumman Corp. is expecting to post a loss of $200 million in revenues in 1999 due to the announced reduction in 747 jumbo jet production at Boeing Co. Northrop is still expecting to post a 4% sales growth in 1999. The revenue shortfall for 1999 would come out to about 20% of the company's expected revenue from Boeing. Boeing is Northrop's largest commercial aircraft client.

Comment:

Expecting to post a loss of $200 million in revenues in 1999 due to the announced reduction in 747 production at Boeing

Sales, profits & dividends, Northrop Grumman Corp.

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