Industry Week in Review – February 1, 2013
This past Thursday, Senator Chuck Hagel endured a peppering of questions during his confirmation hearing before the Senate Armed Services Committee (“SASC”). Republican panel members questioned Hagel’s past judgment on issues such as the nation’s alliance with Israel, Iran’s nuclear program, troop levels after 2014, and the 2007 troop “surge” in Iraq.
In one of the more stimulating moments of the hearing, Sen. John McCain grilled Hagel on his opposition to the surge and refusal to stand by his previous comments. McCain: “I would like you to answer whether you were right or wrong, and then you are free to elaborate.” Hagel: “I’m not going to give you a yes or no answer on a lot of things today.” McCain further questioned Hagel on his opinion of the nation’s involvement in Syria, and whether or not the U.S. should be more engaged. Hagel refused to take a clear stance on Syria and several other issues; however, he often sided with the judgment of the President.
Further blows came from Republican panel members Sen. Lindsey Graham and Sen. Ted Cruz who questioned Hagel’s statements from an interview in 2006 in which he called pro-Israeli groups the “Jewish lobby” as well as comments he made on Al-Jazeera television network in which he agreed that Israel has committed war crimes in the past. The SASC requires Hagel submit further information requested by panel members and plans on voting on his nomination as early as February 7th.
The Senate kept busy on Thursday by passing a bill to extend the U.S. borrowing authority until mid-May. The Senate approved the bill 64 – 34, and sent it to the White House later in the afternoon for approval. Congress plans to focus its attention on the threat of sequestration which is set to begin on March 1st.
Unisys Corporation (Up 22.1%) – Shares are up this week after the company announced 4Q12 earnings per share of $1.67, beating consensus estimates by $0.74. The company attributed its success to a strong performance in its technology business and increased margins in its services business.
Mercury Systems, Inc. (Down 6.9%) – Shares are down this week after the company announced fiscal year 2Q13 financial results that were below analyst expectations. Revenues for the quarter were $49.8 million, a decrease of $18.2 million from the same period last year. The company attributed the slowdown to the potential for sequestration and continued uncertainty within Congress.
Goldner Hawn Johnson & Morrison acquired Universal Turbine Parts, a provider of turboprop aircraft engine products and related services to maintenance, repair, and overhaul facilities, fleet operators, and engine parts dealers. Terms of the deal were not disclosed.
DC Capital Partners acquired Computer Security Solutions, a provider of technology solutions for the intelligence community (“IC”). The acquisition expands DC Capital’s portfolio of companies that focus on the IC, including Catapult Technology, Kaseman, and Strategic Intelligence Group. Terms of the deal were not disclosed.
Dynamic Precision Group acquired Paradigm Precision Holdings, a provider of precision machined aerospace engine components. The acquisition expands Dynamic Precision Group’s global footprint and supports the company’s strategy to deliver complex engine components to its customer base. Terms of the deal were not disclosed.
Consolidated Aerospace Manufacturing acquired Aerofit, a provider of high and low pressure fluid fittings and fitting systems for the aerospace industry. The acquisition expands Consolidated Aerospace’s product offerings as well as its customer base across commercial and military aircraft platforms. Terms of the deal were not disclosed.