BAE Systems to Axe 3,000 Jobs in the U.K.
BAE Systems is set to announce up to 3,000 job losses in the U.K., as it struggles to secure new orders for the Eurofighter Typhoon combat jet and slows deliveries to the project’s existing customers amid cuts to defense budgets. According to the The Telegraph, the job cuts are part of the company’s cost cut measures, preparing for a possible slowdown in production of the Eurofighter Typhoon line. Typhoon is currently in the final competition in India, and is positioned to be one of three possible fighters considered for Japan’s next generation fighter, but for the interim phase, production levels are expected to fall as the European air forces set to meet budget cuts by reducing operational and procurement costs.
Lockheed Martin, Raytheon Announce Stock Repurchase, Dividends
September 22, 2011: Lockheed Martin (NYSE:LMT) and Raytheon (NYSE:RTN) both announced stock repurchase plans yesterday; LMT board of directors authorized spending up to $2.5 billion for the purchase of the company’s common stock. The board also authorized a fourth quarter 2011 dividend of $1.00 per share, marking the ninth consecutive annual increase of at least 10% in Lockheed Martin’s quarterly dividend rate. “We continue to deliver on our long-standing goal to return at least 50 percent of free cash flow [to the shareholders]” said Chairman and CEO Bob Stevens. The Board of Directors of Raytheon Company has allocated $2.0 billion for common stock repurchase and declared a quarterly cash dividend of $0.43 cents per outstanding share of common stock.
Qatar Interested in Daimler’s EADS Shares
September 21, 2011: Qatar has shown interest in buying a 7.5 percent share of EADS currently held by German company Daimler, Defense News reports. Controlling 22.5 percent of the European Aerospace and defense giant, Daimler decided to sell its holdings in EADS but denied negotiating the sale with Qatar. Selling of these stocks is particularly complex since, according to the shareholders’ agreement, France and Germany should own exactly equal percentage of EADS. (Defense News)