Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
$OA has signed multiple, long-term agreements with premier commercial ammunition suppliers, valued about $400MM over a three-year period. The agreements span from 2018 to 2020 and provide flexibility to optimize factory operations and best support customer needs and market demands.
$NOC continues to expect that capital expenditures will remain elevated in 2018 and 2019 before starting to return to a new normal that reflects a larger business. For 2018, the company does have additional CapEx as well as $100-150MM in costs from incremental interest and transaction cost related to its pending acquisition of $OA.
$NOC currently expect the $OA transaction to close in 1H of this year. In late November, $OA shareholders overwhelmingly approved the terms of the transaction. The FTC is reviewing the proposed transaction in the U.S. in consultation with the DoD and $NOC notified the European Commission on Jan. 18 under the simplified procedure notice.
$NOC's operating income for 4Q17 decreased to $767MM from $831MM last year. The decline is primarily due to higher transaction costs from pending acquisition of $OA and deferred state tax expense from discretionary pension contribution. It also includes changes in contract mix at Aerospace Systems and Mission Systems.
$OA has been awarded a contract by Intelsat to build the Galaxy 30 communications satellite. Galaxy 30 will be designed, built and tested at $OA’s satellite manufacturing facility in Dulles, Virginia, and will primarily serve video markets in North America. The satellite is scheduled to launch in early 2020.
$OA has been awarded a contract for a second Mission Extension Vehicle (MEV-2). $OA is now producing MEV-1, a commercial in-space satellite servicing system, for Intelsat with launch scheduled for late 2018. Under this new agreement, $OA will manufacture, test and launch MEV-2 and begin mission extension services in mid-2020.
$OA has signed its first full-rate production (FRP) contract for its all-electronic FMU-167/B Hard Target Void Sensing Fuze (HTVSF). Contracted through the US Air Force, the $23MM award is a follow-on FRP order to the low-rate initial production contract awarded in 2016.
$OA said its S. S. Gene Cernan Cygnus spacecraft successfully completed its eighth cargo supply mission to the International Space Station under NASA's Commercial Resupply Services (CRS-1) contract. The mission, known as OA-8, achieved significant milestones that further demonstrated the versatility and value of the Cygnus spacecraft.
$OA has been awarded a contract from the US Air Force Space and Missiles Center to build a Long Duration Propulsive Evolved Expendable Launch Vehicle platform. The innovative platform, positioned between the launch booster and a primary space vehicle, is used to carry small payloads or deploy small satellites.
$OA said its Cygnus spacecraft, following a highly successful stay as a part of the International Space Station, has departed from the station to begin the next phase of its mission. The OA-8 mission marks the fourth time that Cygnus has been used for NanoRacks cubesat deployments during its secondary payload mission phase.
$OA announced significant progress on the National Oceanic and Atmospheric Administration (NOAA) Joint Polar Satellite System (JPSS) spacecraft program. The JPSS-2 spacecraft will host instruments that provide essential operational space-based weather observations for NOAA.
Shareholders of aerospace company $OA have approved the proposed acquisition of Orbital ATK by $NOC. More than 99% of Orbital shareholders voted in favor of approving and adopting the merger agreement. The transaction is expected to close in the first half of 2018, pending receipt of regulatory approvals.
$OA contributed to the successful launch of a United Launch Alliance Delta II rocket as it lifted off from Vandenberg Air Force Base, California, carrying the first Joint Polar Satellite System (JPSS-1) spacecraft. $OA’s contributions to the Delta II include nine Graphite Epoxy Motors (GEM 40) and a large composite fairing for the rocket.
With regard to $OA acquisition, $NOC estimates about $150MM of annual cost savings by 2020 and it has modeled some cost that will be incurred in order to get there. The company said it would look to find some additional operational synergies that certainly would work to make sure that those drive cost savings as well.
During 3Q17, $NOC paused its share repurchases as it was considering the $OA acquisition. Year-to-date, $NOC has spent $393MM to repurchase about 1.6MM shares. $2.3Bil remains on its current share repurchase authorization. The company said returning cash to shareholders through a competitive dividend and share repurchases remains a priority.
$OA, which is into aerospace and defense technologies, has been awarded a contract worth $350MM from the US Navy to continue full-rate production (FRP) of the AGM-88E Advanced Anti-Radiation Guided Missile (AARGM). With an initial award of $157MM for FRP Lot 6 US Navy missiles, the contract also includes an option for FRP Lot 7 missiles.
$NOC has signed an agreement to buy aerospace company $OA for $7.8Bil in cash, plus the assumption of $1.4Bil in debt. Orbital shareholders will get all-cash consideration of $134.50 per share. The transaction, which is expected to close in 1Q18, will be accretive to earnings in first full year, and generate annual cost savings of $150MM by 2020.