Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Why doesn`t Elbit take over Suspect Detection Systems...?
Than Elbit gets a fantastic system which is called cogito and Elbit is much bigger in the security market...
Elbit Systems revenue jumps to nearly $2 billion
70% of the firm's backlog is for orders outside of Israel.
Globes' correspondent 11 Mar 08 10:09
Military electronics developer Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) today reported its consolidated results for the fourth quarter and year-ended December 31, 2007.
Fourth quarter revenue increased by 26.5% to $591.1 million in 2007, compared to $467.4 million in the corresponding quarter of 2006.
During the fourth quarter of 2007, the Company had a $10 million financial expense related to the write-off of investments Auction Rate Securities, which were rated AAA or AA when acquired, and which have experienced multiple failed auctions due to a lack of liquidity in the market for these securities.
Elbit's orders backlog as of December 31, 2007 reached $4.62 billion, an increase of 22%, as compared to $3.79 billion at the end of 2006. 70% of the backlog relates to orders outside of Israel. Approximately 70% of the firm's backlog as of December 31, 2007 is scheduled to be performed during 2008 and 2009.
Gross profit for the fourth quarter of 2007 was $156.2 million, as compared to gross profit of $100.2 million in the fourth quarter of 2006, and the gross profit margin in the fourth quarter of 2007 was 26.4%, as compared to 21.4% in the fourth quarter of 2006.
Net profit for the fourth quarter of 2007 increased by 33.2% to $31.9 million, compared to $24 million for the same period of 2006. Diluted earnings per share for the fourth quarter of 2007 was $0.75, as compared to $0.57 for the fourth quarter of 2006.
Consolidated revenue for the full year of 2007 increased by 30% to $1.98 billion, as compared to $1.52 billion in 2006.
Gross profit for the year ended December 31, 2007 was $516.4 million, as compared to gross profit of $373.5 million in 2006, and the gross profit margin in 2007 was 26.1%, as compared to 24.5% in 2006.
One-time charges related to the completion of the acquisition of Tadiran Communications on April 26, 2007, which were charged in the second quarter, impacted full year results. Elbit Systems recorded $27.1 million in expenses in relation to the acquisition, with an in-process research & development (“IPR&D”) write-off of $16.6 million recorded under operating expenses, and restructuring expenses of $10.5 million recorded under cost of goods sold, which negatively affected the gross profit rate by 0.5%.
Net profit for the year ended December 31, 2007 increased by 6.2% to $76.7 million, as compared to $72.2 million in 2006. Diluted earnings per share in 2007 were $1.81, as compared to $1.72 in 2006.
Excluding the above one-time, net charges related to the acquisition of Tadiran Communications, net earnings for the year ended December 31, 2007 were $101 million, and earnings per shares reached $2.39.
Elbit Systems president and CEO Joseph Ackerman commented that "2007 was a banner year in which we continued our top line growth while producing record net profit, EPS, backlog and operating cash flow. We have been very successful in further globalizing our business, with strong growth in Europe, and we now have presence in important and diversified geographic regions, with a cutting edge comprehensive product portfolio for the evolving needs of the markets in which we are active."
Elbit Systems, with its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned air vehicle (UAV) systems, advanced electro-optics, electro-optic space systems, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios.
Published by Globes [online], Israel business news - www.globes-online.com - on March 11, 2008
UBS downgrades Elbit Systems
http://globes-online.com/serveen/globes/docview.asp?did=1000307303&fid=942
"Elbit is currently trading at a premium to the sector."
Globes correspondent 7 Feb 08 11:24
UBS has cut its recommendation for defense company Elbit Systems (Nasdaq: ESLT; TASE: ESLT) from "Buy" to "Neutral". Nevertheless, UBS analysts Darren Shaw and Roni Biron raise their price target for the stock from $51 to $63. This compares to a closing price in New York yesterday of $57.51, which gives the company a market cap of $2.42 billion.
Shaw and Biron say that , although Elbit shows rapid revenue growth, its profitability lags its sector, while its share is at a premium.
"Elbit is a fast-growing defence player, offering a wide range of electronic and electro-optic solutions. Over the past several years, the company has boosted its profile via M&A and strategic partnerships. This has translated into very strong deal-flow, including ‘high-profile projects such as Watchkeeper in the UK." Shaw and Biron write.
"We expect Elbit to end 2007 with nearly $2 billion in revenue, more than double its 2004 level. This reflects organic growth of about 20% in the past two years, coupled with M&A activity. Elbit’s order backlog has shown a similar trend, reaching a record level of $4.55 billion, or 2.3x 2007 estimated sales. We expect 2008 to reflect revenue growth in excess of 17% and an additional increase in backlog.
"While Elbit’s growth and visibility are at the higher end of the defence spectrum, its profitability is below average. We believe margins should improve over time on the back of operating leverage and efficiency gains. However, we expect integration costs, and currency exposure to weigh on profitability in the near term.
"We raise our price target to $63 from $51 but downgrade our rating to Neutral from Buy. Elbit is currently trading at a premium to the sector. While this is justified, in our view, given Elbit’s quality play on defence electronics, we believe the risk-reward is mostly priced in at current levels. Our price target is DCF based," the report concludes.
"We'll maintain two-digit growth"
Elbit Systems CEO Joseph Ackerman assesses his market.
Uri Shuster 15 Nov 07 17:07
The impressive rise seen recently in the stock of Elbit Systems (Nasdaq: ESLT; TASE: ESLT) was probably less to do with anticipation of the exceptionally good third quarter results reported yesterday, and more to do with the realization that anyone who wants to carry on investing in stocks needs to expand the defensive element of the portfolio, a need which the company meets precisely. There was nothing unusual in Elbit Systems' financials, and no unpleasant surprises, which amounts to a privilege these days.
Company president and CEO Joseph Ackerman believes that the two-digit growth will be maintained in the coming years. "Once, if you were to ask me, I would say that the goal was high one-digit growth. Now, I allow myself to say low two-digits," says Ackerman, and explains, "The budgets of armies around the world have been growing at 3-4% annually in the past few years, and we are growing faster than the market, even though it certainly isn't easy. Our business is military electronics, and it makes no difference whether there's peace or war, there's always demand for the products. What's more, today armies buy fewer platforms and more systems, and that's exactly what we do. Therefore I estimate that in the next three to four years we'll maintain a two-digit growth rate. 2008 is more or less clear to us, and it will be better than 2007."
In Elbit Systems' field of activity, size is critical. Although the company is a bulldozer in local terms, as witness its almost unbelievable $4.55 billion orders backlog, it is small in comparison with similar companies overseas.
"The figures are very clear today, the customer seeks a solution from a single supplier, and to provide it we must make acquisitions and expand our range, and thereby also reduce costs, for example marketing costs, which a small company in this area finds hard to meet," Ackerman explains, and adds, "The Israeli scale is deceptive. We're still not even half the average size of defense companies around the world, and so we must persist with a strategy of mergers and acquisitions."
Nevertheless, Ackerman reckons that it will take time till the next acquisition. "In the short term we must digest the acquisition of Tadiran Communications and our other acquisitions. So I see 2008 as a year of integration, and not so much of acquisitions. At the same time, we're always on the lookout, and we won't pass up on acquisition opportunities."
Published by Globes [online], Israel business news - www.globes.co.il - on November 15, 2007
Elbit Systems Reports Second Quarter 2007 Results
Tuesday August 14, 3:56 am ET
Backlog of Orders at Record $4.2bn
Revenues Reached Record $468m, Up 36% Year-Over-Year
Cash Flow of $130 Million for First Six Months, Up 24% Year-Over-Year
HAIFA, Israel, August 14 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (the "Company") (NASDAQ: ESLT - News), the international defense company, today reported its consolidated results for the second quarter ended June 30, 2007.
Completion of Acquisition of Tadiran Communications. On April 26, 2007, the Company completed the acquisition of the outstanding shares of Tadiran Communications Ltd. ("Tadiran"). Following the acquisition, the Company fully consolidated the results of Tadiran. On July 12, 2007, the Company reported that it anticipated the acquisition related expenses in the second quarter to be within a range of $25 - 30 million. The Company recorded $27.1 million in expenses in relation to the acquisition as follows: In-Process Research & Development ("IPR&D") write-off of $16.6 million recorded under operating expenses, and restructuring expenses of $10.5 million recorded under cost of good sold.
Backlog of orders as of June 30, 2007 reached a record $4,196 million, compared with $3,786 million as of December 31, 2006. 73% of the backlog is for sales outside Israel, and approximately 61% of the backlog is scheduled to be performed by the end of 2008. The majority of the balance is scheduled to be performed in 2009 and 2010.
Consolidated revenues for the second quarter of 2007 increased by 36% to $468.2 million, from $344.8 million in the second quarter of 2006.
Reported gross profit for the second quarter of 2007 increased by 30% to $116.5 million (24.9% of revenues), as compared with gross profit of $89.6 million (26.0% of revenues) in the second quarter of 2006. Gross profit for the quarter included the $10.5 million restructuring charge relating to the completed acquisition of Tadiran. Excluding this charge, gross profit in the second quarter of 2007 increased by 42% to $127.0 million (27.1% of revenues).
Reported consolidated net loss for the second quarter of 2007, including the $27.1 million ($24.4 million net) in expenses recorded in relation with the completed acquisition of Tadiran, was $0.7 million, compared with a net income of $15.1 million (4.4% of revenues) in the second quarter of 2006. Loss per diluted share for the second quarter of 2007 was $0.02, as compared with earnings per diluted share of $0.36 for the second quarter of 2006. Consolidated net income for the second quarter of 2007, excluding the IPR&D write-off and restructuring expenses was $23.7 million, or $0.56 per diluted share.
Operating Cash flow generated during the first six months of the year reached a record $129.7 million.
The President and CEO of Elbit Systems, Joseph Ackerman, commented: "We are pleased to report another quarter of growth that is highlighted by record backlog and cash flow. I would like to underline our organic growth that amounted to more than 20% and made a substantial contribution to our overall growth of 36% following the acquisition of Tadiran. We have found that Tadiran has highly professional and talented employees, advanced technologies and a strong presence in the worldwide market. We believe the combined company will quickly evolve into a world leader in the areas of ground systems, communications and C4I. Together with our integration of Tadiran, and based upon the Group's highly qualified and dedicated personnel, strong global presence, growing backlog, continued investment in R&D and solid cash flow, we are confident of our continued success for the future".
The Board of Directors declared a dividend of $0.16 per share for the second quarter of 2007. The dividend's record date is August 28, 2007, and the dividend will be paid on September 10, 2007, net of taxes and levies, at the rate of 16.6%.
http://biz.yahoo.com/prnews/070814/uktu013.html?.v=101
Elbit Systems wins 3 Asian contracts
The company will upgrade tank and artillery systems in three countries.
Adi Ben-Israel 7 Aug 07 10:50
Defense contractor Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) has won three contracts worth an aggregate $163 million for the supply of tank and artillery systems upgrades for customers in three Asian countries. The contracts will be carried out through 2009.
Elbit will upgrade fire control, command and control systems for tanks and artillery systems.
Elbit Systems president and CEO Joseph Ackerman said, "Recent land systems orders announced by the company, including the sale of turrets to Romania and Slovenia, position Elbit Systems as one of the leading companies in the field of land systems. I believe the new orders will serve as a springboard for additional orders from these customers and other customers worldwide".
Published by Globes [online], Israel business news - www.globes.co.il - on August 7, 2007
Thanks !!!
Howdy EZ,
This company trades in Tel-Aviv as well as
in the Naz. Most of the volume is in Tel-Aviv,
though.
I do not follow the stock, but from what i know,
they win bids with meagre margins, if at all.
Best
Dubi
OT: HI stranger !!!
Hey, got a question for you.....do you follow MAGS at all ?
Any ideas on WHAT has held them back ?
TIA/EZ
=======================================
MAGAL SEC SYS LTD (NasdaqGM:MAGS)
Last Trade: 9.10
Trade Time: Jul 30
Change: 0.00 (0.00%)
Prev Close: 9.10
Open: N/A
Bid: 8.45 x 100
Ask: 10.45 x 1000
1y Target Est: N/A
Day's Range: N/A - N/A
52wk Range: 8.51 - 12.00
Volume: 0
Avg Vol (3m): 16,196.9
Market Cap: 94.59M
P/E (ttm): 97.85
EPS (ttm): 0.09
Div & Yield: N/A (N/A)
“Defense News”: Elbit Systems in Indian upgrade
Elbit Systems is seen providing EW systems and other avionics through a joint venture with Hindustan Aeronautics.
Erez Wollberg 30 Jul 07 15:10
“Defense News” reports that Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) will probably provide avionics in the upgrade of 51 Indian Air Force Mirage 2000-H fighter jets as a subcontractor for Hindustan Aeronautics Ltd. (HAL).
“Defense News” says, “Although the contract has not yet been signed, officials with HAL, prime contractor for the $1 billion upgrade program, said Elbit has been selected to supply electronic warfare systems and other avionics.”
“Defense News” adds that parts of the integration and software tasks will be performed in Bangalore by Halbit Avionics, an equity partnership struck early this year between HAL and Elbit Systems. HAL holds half of Halbit, Elbit Systems holds 26% and Merlinhawk Ltd., a Bangalore consulting firm, 24%.
“Defense News” quotes an HAL executive as saying that France’s Dassault will be another subcontractor, and has made a commitment with Elbit Systems to supply non-avionics components, including upgrades to the airframe, non-avionics systems and the engine. Elbit Systems has been engaged in the upgrade of several types of MiG aircraft and has integrated R-73 beyond-visual-range (BVR) missiles in the Mirage 2000-H.
“Defense News” quotes an Indian Ministry of Defence official as saying that the upgrade program will be completed in five years and will include building a prototype aircraft in India in collaboration with the Indian Air Force, HAL and Dassault. Thales of France and state-owned, Bangalore-based Bharat Electronics also will be involved in the program, which is expected to win final contract approval this year.
Published by Globes [online], Israel business news - www.globes.co.il - on July 30, 2007
Well done :)
Dubi
I sold out today for a 75% gain in 16 months. Good luck to all.
Four Israeli companies make top 100 largest defense firms
By Ora Coren
Four Israeli companies have been ranked among the world's 100 largest defense firms by Defense News, a leading industry publication. The firms - Israel Aviation Industry (IAI), Elbit, Rafael and the Israel Military Industries (IMI) - were ranked based on revenues from defense-related activity, though some of the companies also have civilian operations.
The IAI dropped from the 31st place last year to 33rd this year, but with annual sales of $1.746 billion (or 62 percent of its total sales of $2.813 billion) remains the largest Israeli company in defense-related sales.
Elbit rose from the 46th spot last year to 39 this year, with defense sales of $1.402 billion, or 92.2 percent of its total sales. Rafael climbed from the 57th place to the 49th, with sales of $1.056 billion - all defense related. IMI also climbed the chart, from 92nd place last year to 84th this year, with defense sales of $481.6 million.
Elbit was also the only Israeli firm to be included in the leading space and aviation weekly, Aviation Week, which ranked the leading public companies in the world based on growth rates over the past five years. Elbit was also awarded a mention on the weekly's cover page, advertising an interview with the company's CEO Joseph Ackerman. Elbit was ranked in 17th in 2006 performance worldwide, and 18th in performance between 2002 and 2006
http://www.haaretz.com/hasen/spages/886363.html
ESLT keeps growing in Europe:
Elbit Systems Acquires the UK Company Ferranti Technologies for GBP15 Million (US$31 Million)
Press Release Source: Elbit Systems Ltd Thursday July 26, 5:20 am ET
Elbit Systems Strengthens its Presence in the UK
Joseph Ackerman: The Acquisition is in Line With our Strategy to Provide Better Support to our Customers in UK and Europe
HAIFA, Israel, July 26 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (NASDAQ: ESLT - News) reported today that it has acquired the entire share capital of the UK company Ferranti Technologies (Group) Limited ("FTL") for GBP15 million (approximately US$31 Million).
FTL is an established supplier of engineering, manufacturing and product support solutions to the Aerospace and Defence markets. FTL designs and manufactures electronic, power and control solutions with emphasis on reliable operation in harsh climatic and electromagnetic environments. FTL's comprehensive customer logistic support services cover: repair, overhaul, modification, integrated logistic support, and post design services.
The acquisition of FTL will enable Elbit Systems to provide enhanced access and support to its customers in the UK and Europe. Together with U-TacS, a UAV Systems company and UEL, the UAV engines' company, the acquisition will strengthen the Group's presence in this important market.
Joseph Ackerman, President of Elbit Systems Ltd., said: "The acquisition of Ferranti Technologies Limited is in line with our strategy of growth through mergers and acquisitions. We have identified in Ferranti a highly capable management team. I believe that FTL and its management will significantly enhance our business base in the UK and enable us to provide better support to our customers, while gaining better market access in the UK and Europe"
Terry Scuoler, Managing Director of FTL said: "Elbit Systems has outstanding technology and a high reputation in the market place and we are excited that the transaction will allow us to further expend our business across the UK and Europe. We are very much looking forward to build on our respective successes to date and continue to serve our customers need.
FTL was sold by The Fifth Causeway Development Fund (advised by ABN AMRO Capital Ltd.) and by FTL's management.
About Ferranti Technologies
Snip
Elbit Systems wins 2 European contracts
The firm will supply parts for Slovenian Army and Romanian Army armored cars.
Globes’ correspondent 25 Jul 07 11:17
Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) has won two new contracts in Slovenia and Romania worth $55 million altogether.
Elbit Systems will supply overhead remote controlled weapon stations and unmanned turrets as well as other electronic and electro-optical systems and components for the Slovenian Armored Vehicle Program, for 135 vehicles. Deliveries are scheduled to take place through 2011. The company is cooperating with Patria AMV, owned by the Finnish government and European Aeronautic Defense and Space (EADS) NV, and Slovenan company Rotis d.o.o. Elbit Systems will provide laser detection systems, 30mm Unmanned Turrets and 12.7/40 mm Overhead Remote Controlled Weapon System (ORCWS) onboard Patria AMV 8X8 vehicles. Elbit Systems’ share of the program is $40 million.
In Romania, Elbit System will supply unmanned turrets and electro-optic systems valued at $15 million. Deliveries will made made over the next three years. The prime contractor for the program is selected General Dynamics European Land Combat Systems Group subsidiary Mowag GmbH to supply Piranha III vehicles. Elbit Systems will supply 12.7 mm unmanned turrets, and various electro-optic and electronic subsystems, including the Driver Thermal Viewer (DTV) and other systems. Elbit Systems subsidiary Elmet International srl will carry out most of the work in Romania, together with Romanian company Pro-Optica SA.
Elbit Systems VP and general manger C4I & Land Systems Division Bezhalel (Butzi) Machlis said, “The selection of our systems for the projects attests to our ability to provide a completely integrated configuration for fighting/patrol/surveillance vehicles, including unmanned turrets equipped with missiles fire control and threat detection systems.”
Published by Globes [online], Israel business news - www.globes.co.il - on July 25, 2007
Hapoalim bank downgraded today to market perform.
Hapoalim cuts Elbit Systems
"Revenue will grow this year but profitability will be harmed."
Adi Ben Israel 23 Jul 07 13:15
In advance of the company's second quarter financials, Bank Hapoalim has cut its recommendation for Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) to "Market Perform" from "Outperform" and set a target price of $45, 4.5% over the company's current market price. Bank Hapoalim believes that Elbit Systems' revenue has grown in the second quarter, and that its orders backlog is at a record level, but fears that its profitability will remain low.
"We feel that the bottleneck in Elbit Systems' activity is its low profit margins," Bank Hapoalim says. "The company's profitability in 2007 could be harmed as a result of the crisis at Elisra and currency appreciation. Financing costs will increase as a result of the taking of credit to finance the acquisition of Tadiran Communications, as well as the appreciation of the shekel."
Bank Hapoalim believes that while a strong orders backlog will ensure further revenue growth for Elbit Systems this year, the labor dispute at Elisra and the shekel appreciation are likely to harm profitability. "Elbit Systems' revenue for 2007 will total $1.85 billion, with net profit coming in at just $82.4 million (excluding one-time amortizations)," it predicts.
Published by Globes [online], Israel business news - www.globes.co.il - on July 23, 2007
Elbit Systems unit wins thermal imaging order
Opgal’s EYE R25 IR camera is designed for UAVs, gunsights and security systems.
Adi Ben-Israel and Batya Feldman 17 Jul 07 16:06
Opgal Optronic Industries Ltd., owned by Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) and Rafael Armament Development Authority Ltd. in equal shares, has won a $50 million three-year contract with a European company to supply its EYE R25 IR thermal imaging systems.
This is the latest in a slew of contracts by Elbit Systems’ subsidiaries in the past month, including an $80 million contract to supply enhanced tactical computers and other command and control systems to an Asian country, a $97 million maintenance, repair and upgrade contract for US Marines Corps Cobra helicopters, and a $85 million contract to supply new generation, advanced, tactical communications equipment and related services to a European country.
Opgal CEO Dadi Lapidoth said, “This is an important milestone for mass production of the EYE R25. We expect to sign more contracts for the system later this year. This imaging system will be used by a large number of different tools, including unmanned aerial vehicles (UAV), gunsights, and security systems.”
Based in Carmiel, Opgal was founded 20 years ago and has 90 employees. It is considered a leading manufacturer of night-vision and thermal imaging equipment. The company is profitable, and is doubling its revenue every year. The company’s EYE R-25 family of thermal cameras use the 25-micron wavelength for both military and a wide range of industrial applications.
Published by Globes [online], Israel business news - www.globes.co.il - on July 17, 2007
Robot air attack squadron bound for Iraq
By CHARLES J. HANLEY, AP Special Correspondent Sun Jul 15, 6:21 PM ET
BALAD AIR BASE, Iraq - The airplane is the size of a jet fighter, powered by a turboprop engine, able to fly at 300 mph and reach 50,000 feet. It's outfitted with infrared, laser and radar targeting, and with a ton and a half of guided bombs and missiles.
The Reaper is loaded, but there's no one on board. Its pilot, as it bombs targets in Iraq, will sit at a video console 7,000 miles away in Nevada.
http://news.yahoo.com/s/ap/20070715/ap_on_re_mi_ea/iraq_air_surge_ii
Elbit Systems Reports the Impact of the Acquisition of Tadiran Communications Shares on its Second Quarter 2007 Financial Results
Thursday July 12, 6:20 am ET
HAIFA, Israel, July 12 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (NASDAQ: ESLT - News) announced today that, following the successful completion of its Cash Tender Offer for the balance of the ordinary shares of Tadiran Communications Ltd. on April 26, 2007, it expects to record in the second quarter of 2007 acquisition expenses related to In Process Research & Development write off and Restructuring expenses, estimated at 25 - 30 million dollars.
The Company is in the process of finalizing its purchase price allocation and the related expenses, charges and the on-going amortization of the amounts allocated to tangible and intangible assets acquired in accordance. The overall impact on the financial results for the second quarter will be included in its report, which is planned to be released in August 2007.
Elbit Systems Ltd. is an international defense electronics company engaged in a wide range of defense-related programs throughout the world. The Elbit Systems Group, which includes the company and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computes, intelligence surveillance and reconnaissance ("C4ISR"), advanced electro-optics and space technologies, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios. The Group also focuses on the upgrading of existing military platforms and developing new technologies for defense and homeland security applications.
http://biz.yahoo.com/prnews/070712/ukth031.html?.v=9
Use of UAVs Surges Over Iraq
[See the sidebar at the end of article for a description of the kinds of UAVs in use. ESLT is not mentioned, so I presume that its UAVs are not employed in Iraq. Much of this article is about the silly in-fighting between the branches of the USDoD.]
http://news.yahoo.com/s/ap/20070705/ap_on_go_ca_st_pe/unmanned_warfare
>>
By LOLITA C. BALDOR,
Jul 5, 2007
The use of unmanned aircraft in Iraq has surged by nearly a third since the buildup of U.S. forces began this year, and drones are now racking up more than 14,000 hours a month in the battlefield skies.
The increase in unmanned aircraft — from high-altitude Global Hawks to short-range reconnaissance Ravens that soldiers fling into the air — has fueled a struggle among the military services over who will control their use and the more than $12 billion that will be spent on the programs over the next five years.
The Air Force wants to take over development and purchasing of unmanned aerial vehicles (UAVs), arguing that it would save money and improve technology and communications.
It also wants more centralized command of the drones, saying better coordination could eliminate airspace conflicts that can endanger U.S. troops.
The other military services see a power grab, and they're fighting it.
A little more than a year ago, about 700 unmanned aircraft were operating in Iraq. By last December, according to Army data, that number had grown to about 950, and it's expected to soon hit 1,250.
At least 500 are the smaller Ravens that are used by the Army. The rest include Hunters and Shadows — the Army's medium-altitude aircraft that can carry weapons — as well as the Air Force Predators, which are also armed. Larger Global Hawks are used for high-tech surveillance.
The boost has been caused in part by the military buildup ordered by President Bush to help secure Baghdad and the Anbar province. U.S. forces in Iraq have grown by nearly 30,000, to a total of 157,000.
The Air Force argument for more central control over how and where the larger, medium-to-high-altitude drones are used would affect aircraft flown generally above 3,500 feet.
The Army is opposing the plan. Army officials say unit commanders need to be able to quickly deploy drones, and any additional bureaucracy could cause risky delays.
To illustrate, Brig. Gen. Stephen Mundt, the Army's aviation director, turns to a dark, middle-of-the night video taken in May by an Army drone over northern Iraq.
Two armed men can be seen apparently planting roadside bombs. As the unmanned aircraft tracks them, U.S. commanders dispatch an attack helicopter team. Just 16 minutes after the drone first observed the activity, the helicopter's 30 millimeter canon fires, taking out the insurgents.
"This is all going on in real time. You can't plan this in advance. And this is not the only event going on, we've got hundreds of these going on all day," said Mundt.
If the Air Force plan is adopted, he said, it could delay access to drones and compromise the unit's response.
Not so, says the Air Force, arguing that lack of central control can endanger U.S. troops, too.
Drones would still be available for commanders who need them, but it's important that priorities be set by a joint air command, said Air Force Brig. Gen. Jan-Marc Jouas, vice commander of the Air Intelligence Agency.
According to a November study, he said, there have been many cases where U.S. forces could not respond immediately to mortar attacks because a drone had been launched in the area, triggering air space restrictions. He did not provide additional details on the incidents.
"I think there has been some confusion as to what it is the Air Force means," said Jouas. It's about giving the soldiers, sailors, airmen and Marines "a better product to support them in the fight. It's not about taking UAVs away from the soldier or the Marine."
Air Force officials say their proposal will save millions of dollars, improve the systems and ensure the aircraft have compatible communications systems.
The funding change is critical, Jouas added, as a way to save money.
As an example, he said that instead of awarding a new contract for the Army's Sky Warrior program, the Pentagon could have worked with the existing, and similar, Predator program. Doing that, he said, could have saved between $400 million and $600 million.
The Army's Mundt, however, said his service had a competitive bidding process and the Sky Warrior was selected.
Pentagon leaders, including Deputy Defense Secretary Gordon England, are pressing the services to hammer out a compromise. And Navy Adm. Edmund P. Giambastiani Jr., vice chairman of the Joint Chiefs of Staff, met last week with other top brass to review the Air Force plan, including England's June directive that the services work together more on the Army's new Sky Warrior program and the Air Force's long-standing Predator program.
But finding common ground has proven difficult.
The Pentagon's 2008 budget calls for spending nearly $900 million for five pricey Global Hawks, almost $70 million on 300 Ravens, and close to $700 million on research, development and procurement of two dozen Predators, four Reapers and a dozen Sky Warriors.
The Air Force's central control plan would involve the larger drones and not affect the small, shoulder-launched Ravens, which soldiers can send into the air for shorter range, lower altitude surveillance and reconnaissance.
All four military services are pursuing plans to buy more unmanned aircraft. The Army and Marine Corps are looking at buying the new Sky Warrior, which is touted as being more lethal than the Predator. It could carry four Hellfire missiles, while the existing Predators generally carry two. The two aircraft are built by the same company, General Atomics Aeronautical Systems, based in California.
The Navy is looking into a new helicopter-like drone that can take off and land vertically on ships.
The Air Force, meanwhile, is investing $13 billion to buy 241 drones, including Predators, Global Hawks and Reapers, over the next five years.
Gen. Michael Moseley, the Air Force chief of staff, said one goal is to set up 21 orbits of continuous unmanned aircraft coverage in the Central Command region, which includes Iraq. Currently, he said there are about 10.
[Sidebar]
Unmanned Aircraft of the U.S. Military
The U.S. military is increasing its use of drones in Iraq. Some of the systems include:
• Global Hawk: The military's prime eye-in-the-sky provides high-altitude, high-resolution intelligence, surveillance and reconnaissance in near real-time. Once programmed, it can taxi, take off, fly, capture images and return on its own, while ground-based operators monitor its progress or, if needed, change its course. It has a wingspan of about 116 feet, and can fly at altitudes of up to 65,000 feet. The prime contractor is Northrop Grumman's Ryan Aeronautical Center in California, and the proposed 2008 federal budget would spend $876.3 million on research, development and the purchase of five aircraft.
• Predator: Currently, the military's main hunter-killer system, the Predator is equipped with cameras, sensors and radar that can capture video and still images. It also has a targeting system and can carry two laser-guided Hellfire missiles. It is about 27 feet long, weighs more than 1,100 pounds, and can fly at altitudes up to 25,000 feet. The prime contractor is General Atomics Aeronautical Systems Inc. [#msg-18794055], and the proposed 2008 budget includes about $375 million for research, development and the purchase of 24 aircraft.
• Shadow: It's used by Army brigades on the battlefield for reconnaissance. The Shadow is smaller than the Global Hawk and Predator, with a wingspan of 12.3 feet, and it generally flies at altitudes between 6,000 and 10,000 feet. The contractor is AAI Corp., based in Maryland, and the proposed 2008 budget includes about $48 million for development.
• Raven: Weighing a little more than four pounds, the Raven has become a critical reconnaissance tool for smaller Army units, such as companies and battalions. It has a 5-foot wingspan, is a bit more than 3 feet long. Soldiers can fling them into the air by hand, though it also has an electric motor. It is often used to locate roadside bombs or let soldiers know what lies around the next corner or over the hill. The contractor is California-based AeroVironment Inc.[#msg-16439285], and the proposed 2008 budget includes nearly $23 million for research, development and the purchase of 300 aircraft.
<<
No stopping ESLT,
Elbit Systems Awarded $80 Million Contract by an Asian Country to Provide Tactical Computers and Other Command & Control Systems
Tuesday July 3, 6:35 am ET
HAIFA, Israel, July 3 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (NASDAQ: ESLT - News) announced today it was awarded a contract valued at approximately $80 million to supply tactical computers and other command & control systems to an Asian country.
The contract will be performed over the next four years and will include the supply of Enhanced Tactical Computers (ETC), advanced communication controllers and additional command & control packages.
The ETC is one of the major building blocks for Elbit Systems' Command, Control, Communication, Computers and Intelligence (C4I) systems. The ruggedized, high performance PC based computer is widely used by armies worldwide. It is the latest generation of a long line of tactical terminals, fully complying with the operational requirements and the harsh conditions of the modern battlefield. Equipped with all types of communication interfaces and powerful display features, the ETC enables the user in the field to achieve a new level of real-time situation awareness in combat. The tactical communication device embedded in the ETC is used together with the data communication software to enable communication over a vast selection of modern military media, among which are analog and digital radios, field wire-line, wireless LAN and data radios.
Elbit Systems is a world leader for C4I systems and has supplied similar systems to the Israeli Defense Forces and other customers worldwide, including leading NATO members
http://biz.yahoo.com/prnews/070703/uktu026.html?.v=29
Dubi
Press Release Source: Elbit Systems of America
Kollsman, an Elbit Systems of America Company, Awarded ID/IQ Contract Worth up to $97 Million from U.S. Navy
Wednesday June 27, 6:15 am ET
Received Initial Delivery Orders Valued at $14 Million
MERRIMACK, New Hampshire, June 27 /PRNewswire-FirstCall/ -- Kollsman, Inc., an Elbit Systems of America company, announced receipt of an Indefinite Delivery/Indefinite Quantity (ID/IQ) contract from the Naval Inventory Control Point-Philadelphia (NAVICP)/Naval Supply Systems Command (NAVSUP) for test, teardown, analysis and repair/modification of various Night Targeting System (NTS) Weapon Repairable Assemblies (WRAs) and System Repairable Assemblies (SRAs) in support of the AH-1W Marine Corps Helicopter. The total ID/IQ contract value may run as high as $97 million over a five-year period. As part of this award Kollsman has received initial delivery orders valued at $14 million. Work will be mainly performed in Merrimack, New Hampshire and is expected to be completed in 2012.
ADVERTISEMENT
"We are very pleased to be selected by the NAVICP/NAVSUP. This contract continues Kollsman's important work supporting the Marine Corps helicopter mission readiness and demonstrates excellent relations with this depot legacy program," stated Randy Moore, Kollsman's Executive Vice President and General Manager.
snip