News & Events

Industry Week in Review – February 4, 2011

Stocks ended the week experiencing slight to moderate gains with the Dow gaining nearly 2.3%, the S&P approximately 2.7%, and NASDAQ more than 3.0%.  Earlier in the week it was reported that the Institute for Supply Management’s index for manufacturing activity climbed to 60.8 in January (any reading above 50 points to expansion), indicating that the manufacturing sector started 2011 very strong, growing at its fastest pace in more than six years.  On Friday, the U.S. Army formally announced the termination of the Class I Unmanned Aerial System and the Tactical and Urban Unattended Ground Sensors, after it was reported earlier in the month that the Army issued a stop-work order to prime contractor Boeing (Honeywell was the subcontractor for the Class I UAS and Textron was the subcontractor for the unattended sensors).  The Class I UAS, nicknamed the flying beer keg, is known for its loud noise when flying, and 2009 tests showed that the sensor images were of poor quality, preventing soldiers from acting upon them.  Ashton Carter, the Pentagon acquisition chief, approved the termination during a January 12th Defense Acquisition Board review, as well as the decision to buy one more brigade set of Network Integration Kits (“NIKs”) and two more sets of the Small Unmanned Ground Vehicle.  However, Carter noted that no additional NIK procurement is authorized, and that the NIK, which has become Increment 1 of the service’s Early Infantry Brigade Combat Team (“E-IBCT”) program and offers a good transitional capability to deliver key waveforms to companies and platoons, is not considered “a viable, affordable, long-term solution.”          

This week’s big movers:

  • Bombardier, Inc. (Up 9.3%)
  • ESCO Technologies Inc. (Up 15.7%)
  • LaBarge Inc. (Up 11.6%)
  • The KEYW Holding Corporation (Down 8.2%)
  • Unisys Corporation (Up 32.0%)

Relevant transactions:

  • Jorge Scientific Corporation announced on Tuesday that it has acquired FedConcepts
  • TransDigm Group Incorporated announced on Monday that it has entered into a definitive agreement to sell its fastener businesses to Alcoa, Inc. for approximately $240 million