Bombardier received a mix of positive and negative news this week. China Express placed a firm order for three CRJ900 jets with options for 13 more in a deal worth an estimated $733 million. Meanwhile, Bombardier’s CSeries, which has experienced difficulties in the past, faces another delay as the company is now waiting until the first three CSeries test aircraft are fully assessed before announcing a new service-entry date. The initial CS100 was planned to enter service in mid-2014 with the larger CS300 following the year after, but with the most recent delays, analysts predict the CS100 will enter service sometime in early 2015. While China Express has also expressed interest in the CSeries, Bombardier is still currently 118 orders short of their target 300 firm orders by service entry.
Defense Secretary Chuck Hagel plans to reduce the Pentagon’s staff by 20 percent in an effort to save the Department of Defense approximately $1 billion over the next five years. Among the changes, many civilian and contract workers will be eliminated while oversight responsibilities of senior officials will be reorganized. The plan also calls for a policy directorate overhaul, including the possible elimination of one deputy undersecretary and four deputy assistant secretaries. Further details and information of the plan will be included in the Department of Defense’s 2015 budget proposal, which is scheduled to be released in February.
Unisys Corporation (Up 9.2%) – Shares were up this week after the Company announced it was awarded a contract to transition 6,000 Department of Energy program personnel to Google’s cloud-based email and collaboration solution, Google Apps for Government.
Leidos Holdings, Inc. (Down 14.5%) – Shares were down this week after the Company released disappointing preliminary third-quarter results and lowered its full-year guidance.
OSI Systems, Inc. (Down 15.6%) – Shares were down this week after the Transportation Security Administration terminated a $60 million delivery order with the Company’s security division, Rapiscan Systems.
TransDigm Group Inc. to acquire Airborne Systems Inc., a provider of personnel parachutes, cargo aerial delivery systems, emergency escape systems, and other related products. TransDigm will pay approximately $250 million for Airborne Systems.
Eagle Ray Inc. acquired Kore Federal Inc., a provider of IT management and consulting services to intelligence and defense clients. Terms of the deal were not disclosed.
AAR Corporation’s Telair International GmbH to acquire PFW Aerospace GmbH’s Cargo Loading System Assets, a provider of cargo loading and baggage handling systems worldwide. Terms of the deal were not disclosed.