This website does readability filtering of other pages. All styles, scripts, forms and ads are stripped. If you want your website excluded or have other feedback, use this form.

Boeing Says EADS Seeking U.S. Growth With BAE Merger - Bloomberg

success fail Jan OCT Sep 06 2012 2014 2015 16 captures 15 Sep 2012 - 29 Jun 2018 About this capture COLLECTED BY Organization: Internet Archive These crawls are part of an effort to archive pages as they are created and archive the pages that they refer to. That way, as the pages that are referenced are changed or taken from the web, a link to the version that was live when the page was written will be preserved.

Then the Internet Archive hopes that references to these archived pages will be put in place of a link that would be otherwise be broken, or a companion link to allow people to see what was originally intended by a page's authors.

The goal is to fix all broken links on the web. Crawls of supported "No More 404" sites. Collection: Wikipedia Near Real Time (from IRC) This is a collection of web page captures from links added to, or changed on, Wikipedia pages. The idea is to bring a reliability to Wikipedia outlinks so that if the pages referenced by Wikipedia articles are changed, or go away, a reader can permanently find what was originally referred to.

This is part of the Internet Archive's attempt to rid the web of broken links. TIMESTAMPS

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. X
More stories
Watch

Mitt Romney joins John Heilemann and Mark Halperin on their new politics show, "With All Due Respect" TWEET

Boeing Says EADS Seeking U.S. Growth With BAE Merger

By Jim Snyder and Susanna Ray 2012-09-12T22:48:24Z - Comments Email Print Share Save

Boeing Co. (BA) said a merger that would transform rival European Aeronautic, Defence & Space Co. (EAD) into the world’s biggest aerospace business may be intended to win more sales in the U.S., the largest defense market.

EADS and potential partner BAE Systems Plc (BA/) divided the European industry along civil and defense lines when they were formed more than a decade ago, and combining them would create a company that “would look a little more like us,” Boeing Chief Executive Officer Jim McNerney said yesterday. “That’s been a steady theme in EADS’ development in recent years.”

The new company would have 220,000 employees and sales of almost $100 billion, unifying businesses from civil jets to warplanes and nuclear submarines. That’s about 40 percent more revenue than Chicago-based Boeing, whose $68.7 billion in 2011 sales made it the largest aerospace company. About half of Boeing’s revenue came from its defense operations.

“I don’t see this as something that is going to threaten us fundamentally,” McNerney said at a Council on Foreign Relations event in Washington, while declining to comment further because Boeing hasn’t studied the proposed tie-up. “I have a pretty deep and abiding faith in our company’s strength.”

Boeing was the U.S. government’s second-largest contractor in fiscal 2011, at $22.1 billion in sales, based on a Bloomberg Government study of the top 200 suppliers. BAE was No. 9 at $7.3 billion, and EADS ranked 100th, at $684 million, the data show.

U.S. Operations

The two European companies employ about 45,000 workers in the U.S., 90 percent of them at BAE, and operate under special government security agreements. BAE supplies the U.S. military with combat vehicles and artillery such as the Bradley fighting vehicle, the self-propelled Paladin howitzer and naval guns.

EADS makes UH-72 Lakota light-utility helicopters for the U.S. Army. The company in 2011 lost a competition with Boeing to develop a new refueling tanker for the Air Force as part of an estimated $35 billion program.

A BAE merger may enable EADS to compete more effectively on such contracts, Douglas Harned, a New York-based analyst with Sanford C. Bernstein & Co., wrote in a note to clients.

“However, with the Air Force tanker program already awarded to Boeing, we do not expect to see many new platform competitions in the near to medium term,” Harned wrote. The U.S. Defense Department is paring future spending plans amid a federal budget squeeze.

Commercial Competition

Boeing and EADS subsidiary Airbus SAS also compete in the commercial plane market, where Boeing is vying to reclaim the top spot in commercial production lost to its Toulouse, France-based rival in 2003.

BAE is a supplier to Boeing on military and commercial planes, including automatic flight control systems and belly-mounted guns for the V-22 Osprey tilt-rotor, a touch-screen attendant control panel on the 737 single-aisle airliner, and engine-control systems on the 767 and 787 Dreamliner wide-body jets, according to consultant Michel Merluzeau with G2 Solutions in Seattle.

Merging with BAE would achieve EADS’s goal of reducing dependence on the commercial aircraft business cycle, wrote Harned, who has an outperform rating on EADS and market-perform ratings on London-based BAE and Boeing.

“EADS has pushed to enter the U.S. defense market, with some success in selling helicopters to the Army, but a combination with BAE Systems would give it a large U.S. presence,” he said.

Boeing currently trades at a 10 percent discount to EADS on a price-earnings basis, an improvement from a discount of as much as 61 percent in 2011, according to data compiled by Bloomberg.

To contact the reporters on this story: Jim Snyder in Washington at [email protected]; Susanna Ray in Seattle at [email protected]

To contact the editor responsible for this story: Ed Dufner at [email protected]

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.