Industry Week in Review – March 14, 2014
Boeing announced the discovery of hairline cracks in the wings of an estimated 43 787 Dreamliners in production, which will likely delay deliveries to airlines by at least a few weeks. While Boeing has stated the cracks have not been found on planes currently in use and therefore pose no safety risk, as well as stating the problem will not alter plans to deliver 110 787s this year, the discovery adds to the long list of setbacks for the problem-ridden aircraft. Wing-maker Mitsubishi Heavy Industries notified Boeing of the problem, which arose after the Japanese company had made changes to its manufacturing process. Boeing notified customers immediately of the potential delays and none of the aircraft affected have been delivered. The Federal Aviation Administration is currently working with Boeing to ensure that all issues are corrected before any aircraft are delivered.
Lockheed Martin announced on Wednesday its planned acquisition of Industrial Defender, a provider of cybersecurity solutions for industrial control systems in the oil and gas, utility, and chemical industries. Industrial Defender’s capabilities in critical infrastructure protection provide a natural extension of Lockheed’s commercial cybersecurity business, and are strategically aligned with Federal budget and policy priorities. Speaking about the acquisition, Marillyn Hewson, Lockheed’s President and CEO, said Industrial Defender’s “experience in addressing cyber threats to industrial control systems complements our information technology cyber security expertise and strengthens the value we deliver to our customers.” The acquisition highlights continued market interest in companies with high-end security capabilities that address the increasing threat landscape in the cyber domain.
Kratos Defense & Security Solutions, Inc. (Down 12.4%) – Shares were down this week after the Company reported disappointing fiscal quarter results with $235.7 million in revenue, which was below the consensus estimate of $251.7 million.
Thales SA to acquire JetBlue Airways Corporation’s LiveTV, LLC, a provider of in-flight satellite entertainment and connectivity solutions for commercial airlines in the United States and internationally. Thales will pay $400 million in the acquisition.
United Tool & Die Company acquired Smith Brothers Machine Company, a provider of precision computer numerical control milling and turning services for the aerospace industry. Terms of the deal were not disclosed.
Baum, Romstedt Technology Research Corporation acquired SecureForce, LLC, a provider of cybersecurity, risk, and information assurance services to Federal agencies. Terms of the deal were not disclosed.