Industry Week in Review – November 15, 2013
This week marked the end of the first week of sea trials for the new amphibious assault ship USS America (LHA 6), which has been under development by Huntington Ingalls Industries since 2006. The warship, along with its sister ship the Tripoli, are the first assault ships built without a well deck, allowing for additional Marine aviation capacity. Specifically, the America will be able to support helicopters, V-22 Ospreys, and F-35 aircraft, in addition to its more traditional role carrying troops into battle. The ship, larger than many other countries’ aircraft carriers, will be able to hold a crew of 1,059 and 1,687 troops. The America is scheduled to enter the service in 2014.
Three months after the Department of Justice (“DOJ”), six states, and the District of Columbia filed a lawsuit in Federal court to block the proposed merger between U.S. Airways and American Airlines, an antitrust settlement was reached allowing the $17 billion merger to proceed. The airlines alleviated the DOJ’s initial concerns of decreased competition and subsequent fare increases by agreeing to give up space at major airports, including reductions in combined daily departures at Reagan National and La Guardia by 15% and 7%, respectively. A federal judge still must approve the settlement, but the two companies are aiming to close the transaction by December of this year.
In the government sector, Lockheed Martin announced it will be cutting 4,000 jobs and closing facilities due to shrinking budgets and overcapacity within the government services space. The layoffs are expected to take place at the company’s Information Systems and Global Solutions, Space Systems, Mission Systems and Training, and the Missiles and Fire Control divisions across the country.
LMI Aerospace Inc. (Down 24.7%) – Shares were down this week after the Company announced another disappointing quarter, reporting earnings per share of $0.16 versus consensus estimates of $0.22.
Liberty Hill Capital Partners acquired Precise Machining & Manufacturing, Inc., a manufacturer of precision machined parts for aerospace, defense, commercial, and medical industries. Terms of the deal were not disclosed.
Former Stanley Associates executive team acquired GAP Solutions, a provider of professional and technical services to Federal agencies. The team, Eric Wolking and Pat Flannery, will use the Company as a “platform for growth.” Terms of the deal were not disclosed.
A-T Solutions, Inc. acquired GreenLine Systems, Inc., a developer of risk management solutions for maritime and cross-border movement of ships, cargo, and people. Terms of the deal were not disclosed.