Monday, February 25, 2013

BAE Systems Eurofighter intensifying its campaign to export the Rafale deal

Faced with shrinking defense budgets in the United States and Great Britain, BAE Systems relies on exports in developing countries to earn points for growth. This is particularly the case for the Eurofighter Typhoon.

Faced with shrinking defense budgets in the United States and Great Britain, BAE Systems, which presented its findings Thursday 2012, relies on exports in emerging countries to earn points for growth.This is particularly the case for the Eurofighter Typhoon, built in the Eurofighter consortium to which it belongs with EADS and Italy's Finmeccanica. Having been in exclusive talks since January 2012 with the Sultanate of Oman, the UK has signed a contract last December, albeit modest, for the supply of twelve Eurofighter Typhoon combat aircraft and eight Hawk training aircraft. BAE Systems is on opportunities for the Eurofighter in Malaysia and the United Arab Emirates, where it competes with the fighter Dassault Aviation Rafale. The latter, which can take up to three Scalp cruise missiles (unlike Eurofighter) seems currently riding high in Abu Dhabi at the end of the arms room of this emirate (IDEX) after a period of quarrels.

British Prime Minister David Cameron also comes to visit India to push against the Eurofighter Rafale from Dassault Aviation, which has yet entered into exclusive negotiations with New Delhi for a huge contract for the sale of 126 units, including 108 assembled stalled. However, the visit of David Cameron has not quite passed, the British Prime Minister was caught by the alleged case of corruption of the Italian group Finmeccanica in the context of a sale of twelve helicopters manufactured by its subsidiary Italo- British AgustaWestland, in south-west England. Indian Prime Minister Manmohan Singh even mentioned in a statement to the address of David Cameron's "serious concern" about the case that has hit the center-left government a year of general elections. A visit to the final not as bright as the British Prime Minister, who wanted to restore the prestige of the Eurofighter would have wished.

BAE Systems down

British defense group saw its profit back in 2012 and remains cautious for the future because of the uncertain outlook for the U.S. defense budget and the UK. Europe's number one sector recorded a net profit down 14% to 1.07 billion pounds (1.2 billion euros) last year and a decrease of 7% of sales.However, BAE Systems table of growth "modest" earnings per share of underlying in 2013, while its two main markets are expected to remain under pressure. "Growth opportunities are identified in certain segments of the U.S. and UK markets but the overall outlook in both countries continue to be limited," said BAE Systems. United States, a country that accounts for 40% of group sales European drastic cuts in spending to take effect in early March if a compromise is not reached between the elected in Washington. The group has 3,500 employees warned Americans specialized in ship repair they might lose their jobs if the budget negotiations fail.

Uncertainties with the client Saudi

Another uncertainty, the group warned in December that its results were facing delays in the completion of a major contract with Saudi Arabia. This country was signed in 2007 with the United Kingdom a contract for the purchase of 72 Eurofighter Typhoon fighter jets from BAE Systems. But in this program called "Salam", both parties are currently negotiating a price increase of 48 aircraft which remain to be delivered. These discussions are ongoing, says BAE Systems, which fell one place in the latest ranking of the groups of the Swedish institute SIPRI, ranking third behind the U.S. Lockheed Martin and Boeing. The contract dates from 2007 and covers the supply of 72 Typhoon, 24 of which have already been delivered.Its value is estimated at about 4.5 billion pounds (5.5 billion euros).

BAE Systems was conducted between June and October 2012 discussions with EADS, the parent company of Airbus, for a merger. "But no agreement acceptable to all parties has been reached", said BAE Systems. "It's ancient history," assured the CEO, Ian King, at a conference of analysts. The plan of merger would have created a giant world more powerful than Boeing, but the project failed in the reluctance of Germany in particular.

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