Industry Week in Review – July 8, 2011
The Department of Defense (“DoD”) announced on Thursday that Deputy Secretary of Defense William Lynn will resign his post after completing the current budget review. Having worked in defense strategy since 1982, his accomplishments as Deputy Secretary included leading the DoD’s budget process, playing a key role in developing a new cyber strategy, and developing a new operational energy strategy. Many believe his departure will mark significant changes in the DoD staff, with a number of top officials retiring in the near future.
Additionally, the Pentagon has asked Congress to shift $5 Billion in its budget request. Funds would be shifted away from Ground Combat Vehicle and Air-to-Ground missile development in order to replenish about $375 million worth of artillery inventory used in Operation Odyssey Dawn in Libya. Other areas of augmentation include funds for unemployment compensation, increasing price of fuel, and UAV development.
Notes on some big movers:
Aeroflex Holding Corp (Down 17.2%): Shares fell after Aeroflex revised its fourth quarter 2011 guidance, expecting revenue and adjusted EBITDA of $200 million to $59 million, respectively, missing analyst expectations of $219 million in revenue and $65 million EBITDA.
AAR Corporation (Up 10.1%): Shares rose as the company announced that it has been awarded a five-year contract to provide lightweight, multi-purpose shelters for the U.S. Army valued up to $14 million.
No relevant transactions in the past week.