l-3 will focus on growing sectors, says strianese - · pdf filethe company’s crowning...

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TECHNOLOGY JULY 15 2008 | FLIGHT DAILY NEWS 32 For more news/show images see flightglobal.com flightdailynews.com In just over a decade, L-3 Communications has grown from an annual turnover of around $700 million to more than $14 billion. Now chief executive Michael Strianese is looking for additional expansion, but with greater emphasis on organic growth. More than half of L-3’s revenues are from aviation-related activities, and Strianese says: “The growth model is changing to hone in on those areas that we see continued growth, and establishing even more capability.” L-3 this year acquired Northrop Grumman’s Electro-Optical Systems (EOS) unit for $175m, expanding its EO/IR activities, where it had previ- ously acquired Wescam, to an $800m business delivering double- digit growth. Strianese joined L-3 at in 1997 as finance VP, rising to chief executive following the death of Frank Lanza in 2006. Two years on, he says L-3 is “a much broader, integrated company focused on capability and the international marketplace,” and no longer operates on a “fragmented business-by-business case”. The company’s crowning aero- space achievement came last year, when it won the US Joint Cargo Aircraft project, teamed with Alenia Aeronautica. The army’s first C-27J Spartan recently flew in Italy and should be delivered late this year. In the subcontractor role, L-3 will be communications system inte- grator for the US Navy’s Broad Area Maritime Surveillance fleet of modi- fied Northrop RQ-4 Global Hawk UAVs. The companies have also teamed for the navy’s EPX intelli- gence aircraft requirement, and for the US Army’s revived Airborne Common Sensor project. On the international stage, L-3 established a UK presence early this decade, also making local acquisi- tions, largely in the ISR arena. The company is mission systems inte- grator on the Raytheon Systems-led Airborne Standoff Radar programme, and will provide EO/IR sensors for British Army/Royal Navy AgustaWestland Future Lynx helicopters. It was also selected this year to deliver the Helix mission system upgrade to the RAF’s BAE Systems Nimrod R1 electronic intel- ligence aircraft. International success is contributing towards L-3’s current organic growth of around 7-9% a year, but the company continues to look for “very carefully chosen acquisitions”, says Strianese. “L-3 is engaged in several poten- tial deals comparable with its recent purchase of Northrop’s EOS busi- ness. “I would predict that we would have at least one, perhaps two more this year in that size range.” Bigger purchases are “long shots for now”, though he notes: “If a larger deal were to present itself we have the financing flexibility to do that as well. But we have to buy companies at a price that produces real economic returns. There is no ‘must-have’ for us anymore: we’re very selective.” ACSS is gearing up to deliver the first hardware on its new T 3 CAS integrated TCAS, TAWS and Mode S transponder product later this summer, with certifi- cation due in the third quarter of 2009. The company, which is jointly owned by L-3 Communications and Thales, is exhibiting on the L-3 stand (Hall 4, A15). T 3 CAS is set to be certified on the Airbus single-aisle A320 family and long-range A330/A340 aircraft, including the A340-500/600, and hosts a range of capabilities mandated by Eurocontrol’s programme for Air Traffic Situational Awareness (ATSA). ACSS says that T 3 CAS delivers lower acquisition and ownership costs, less weight and volume and reduced wiring with improved power efficiency. And ACSS chief operating officer Cole Hedden says the company is also in talks with other OEMs on the back of the Airbus deal. “ITP is going to be important in that it enables aircraft to change altitudes and overtake other aircraft more easily in remote (non-radar) regions, such as the North Atlantic.” The T 3 CAS integrated platform for Airbus will include the ACSS SafeRoute ADS-B (automatic dependent surveil- lance-broadcast) capabilities, including Air Traffic Situational Awareness (ATSAW), and ITP. The new transponder will also be available as a software update to existing ACSS equipment. SafeRoute, which received opera- tional approval from UPS earlier this year, works by tracking every aircraft in its vicinity equipped with a standard-fit Mode S transponder. Its Surface Area Movement Management (SAMM) option has cost- saving implications as its gives the pilot a better picture of how many aircraft are taxiing and queuing to take off. Thales Alenia Space is set to deliver its high-resolution (HR) optical imaging instrument for integration in the first Pleiades earth observation satellite. The Pleiades project is part of ORFEO, a joint Franco- Italian initiative by CNES and ASI for both military and civilian uses, including mapping, volcano monitoring, geophysical and hydrology studies, plus urban planning. CNES selected Astrium as satellite prime contractor and Thales Alenia Space for the imaging instruments. The T 3 CAS aims to deliver safety and cost benefits L-3 will focus on growing sectors, says Strianese Pleiades closer to launch Artist’s impression of the Pleiades satellite. Pleiades optical high-resolu- tion imaging instruments offer enhanced resolution of 70cm over a 20km band of earth in both the visible and near infrared bands. The first flight-model instrument is now ready for delivery, and will be inte- grated on the first satellite, which will then undergo checks at Astrium’s facility in Toulouse. The two Pleiades observa- tion satellites have a design life of five years and offer a high degree of in-orbit agility thanks to their manoeuvring capability. They are sched- uled for launch in 2010 and 2011 respectively. Thales Alenia Space can be found on both the Thales and the Finmeccanica booths (S1 and OE1/OE2 respectively). Thales and CMC pass the Airbus screen test Thales and CMC Electronics (Hall 4, C14a) have signed a multi-year contract for the development of the development and manufacture of a liquid crystal display (LCD) component for the multi- function control and display unit (MCDU) on the Airbus A320 family. The MCDU serves as the main communications inter- face between the pilot and any connected sub-system, such as the flight manage- ment system (FMS) or the aircraft communications, addressing and reporting system (ACARS). CMC has been manufac- turing the MCDU keyboard for Thales for more than five years, and has produced more than 3,000 units. With this new contract, CMC will now manufacture the MCDU front end, integrating the LCD, backlight and elec- tronics into the keyboard. The projected volume over the life of the programme is expected to be more than 4,000 units and production is anticipated to begin in late 2009. India’s HCL joins EADS top team Indian engineering serv- ices provider HCL Technologies (Hall 3, C10) is here to trumpet creden- tials established by its recent selection as a Tier 1 supplier by European aerospace conglomerate EADS. On the eve of the show EADS named HCL as one of just 28 preferred suppliers out of an existing pool of more than two thousand. “This is a further example of the growing strategic relationship between the aerospace industry and India,” says Rajeev Sawhney, the company’s president for Europe. “With the breadth and depth of our aerospace engineering expertise, we have been at the forefront in developing that rela- tionship.” EADS currently spends about 2 billion a year on engineering services such as research, modelling, flight physics and design. HCL supplies EADS with product engineering and technical publication serv- ices via the group’s design centre in Bangalore. HCL Technologies works from locations in 18 countries and serves a number of sectors besides aerospace, including financial serv- ices, retail and consumer, life sciences and healthcare, tele- coms, and media and entertainment. Cole Hedden: In talks. The SAMM option has cost-saving benefits. 32_Farn08_day2.qxd:Layout 1 14/7/08 10:21 Page 32

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Page 1: L-3 will focus on growing sectors, says Strianese - · PDF fileThe company’s crowning aero- ... recent selection as a Tier 1 supplier by European aerospace conglomerate ... modelling,

TECHNOLOGY

JULY 15 2008 | FLIGHT DAILY NEWS32

For more news/showimages seeflightglobal.com

flightdailynews.com

In just over a decade, L-3Communications has grown from anannual turnover of around $700million to more than $14 billion.

Now chief executive MichaelStrianese is looking for additionalexpansion, but with greateremphasis on organic growth.

More than half of L-3’s revenues arefrom aviation-related activities, andStrianese says: “The growth model ischanging to hone in on those areasthat we see continued growth, andestablishing even more capability.”

L-3 this year acquired NorthropGrumman’s Electro-Optical Systems(EOS) unit for $175m, expanding itsEO/IR activities, where it had previ-ously acquired Wescam, to an$800m business delivering double-digit growth.

Strianese joined L-3 at in 1997 asfinance VP, rising to chief executivefollowing the death of Frank Lanzain 2006. Two years on, he says L-3is “a much broader, integratedcompany focused on capability andthe international marketplace,” andno longer operates on a “fragmentedbusiness-by-business case”.

The company’s crowning aero-space achievement came last year,when it won the US Joint CargoAircraft project, teamed with AleniaAeronautica. The army’s first C-27JSpartan recently flew in Italy andshould be delivered late this year.

In the subcontractor role, L-3 willbe communications system inte-grator for the US Navy’s Broad AreaMaritime Surveillance fleet of modi-fied Northrop RQ-4 Global Hawk

UAVs. The companies have alsoteamed for the navy’s EPX intelli-gence aircraft requirement, and forthe US Army’s revived AirborneCommon Sensor project.

On the international stage, L-3established a UK presence early thisdecade, also making local acquisi-tions, largely in the ISR arena. Thecompany is mission systems inte-grator on the Raytheon Systems-ledAirborne Standoff Radarprogramme, and will provide EO/IRsensors for British Army/RoyalNavy AgustaWestland Future Lynxhelicopters. It was also selected thisyear to deliver the Helix missionsystem upgrade to the RAF’s BAESystems Nimrod R1 electronic intel-ligence aircraft.

International success is

contributing towards L-3’s currentorganic growth of around 7-9% ayear, but the company continues tolook for “very carefully chosenacquisitions”, says Strianese.

“L-3 is engaged in several poten-tial deals comparable with its recentpurchase of Northrop’s EOS busi-ness. “I would predict that wewould have at least one, perhapstwo more this year in that sizerange.”

Bigger purchases are “long shotsfor now”, though he notes: “If alarger deal were to present itself wehave the financing flexibility to dothat as well. But we have to buycompanies at a price that producesreal economic returns. There is no‘must-have’ for us anymore: we’revery selective.”

ACSS is gearing up to deliver the firsthardware on its new T3CAS integratedTCAS, TAWS and Mode S transponderproduct later this summer, with certifi-cation due in the third quarter of2009. The company, which is jointlyowned by L-3 Communications andThales, is exhibiting on the L-3 stand(Hall 4, A15).

T3CAS is set to be certified on theAirbus single-aisle A320 family andlong-range A330/A340 aircraft,including the A340-500/600, andhosts a range of capabilitiesmandated by Eurocontrol’s programmefor Air Traffic Situational Awareness(ATSA).

ACSS says that T3CAS delivers loweracquisition and ownership costs, lessweight and volume and reduced wiringwith improved power efficiency.

And ACSS chief operating officerCole Hedden says the company is alsoin talks with other OEMs on the backof the Airbus deal.

“ITP is going to be important in thatit enables aircraft to change altitudesand overtake other aircraft more easilyin remote (non-radar) regions, such asthe North Atlantic.”

The T3CAS integrated platform forAirbus will include the ACSS SafeRouteADS-B (automatic dependent surveil-lance-broadcast) capabilities, includingAir Traffic Situational Awareness(ATSAW), and ITP.

The new transponder will also beavailable as a software update toexisting ACSS equipment.

SafeRoute, which received opera-tional approval from UPS earlier thisyear, works by tracking every aircraft inits vicinity equipped with a standard-fitMode S transponder.

Its Surface Area MovementManagement (SAMM) option has cost-saving implications as its gives thepilot a better picture of how manyaircraft are taxiing and queuing to takeoff.

Thales Alenia Space is set todeliver its high-resolution(HR) optical imaginginstrument for integration inthe first Pleiades earthobservation satellite.

The Pleiades project is partof ORFEO, a joint Franco-Italian initiative by CNES andASI for both military andcivilian uses, includingmapping, volcano monitoring,geophysical and hydrologystudies, plus urban planning.

CNES selected Astrium assatellite prime contractor andThales Alenia Space for theimaging instruments. The

T3CAS aims to deliversafety and cost benefits

L-3 will focus on growingsectors, says Strianese

Pleiadescloser to launch

Artist’s impression of the Pleiades satellite.

Pleiades optical high-resolu-tion imaging instrumentsoffer enhanced resolution of70cm over a 20km band ofearth in both the visible andnear infrared bands.

The first flight-modelinstrument is now ready fordelivery, and will be inte-grated on the first satellite,which will then undergochecks at Astrium’s facilityin Toulouse.

The two Pleiades observa-tion satellites have a designlife of five years and offer ahigh degree of in-orbit agilitythanks to their manoeuvringcapability. They are sched-uled for launch in 2010 and2011 respectively.

Thales Alenia Space canbe found on both the Thalesand the Finmeccanicabooths (S1 and OE1/OE2respectively).

Thales and CMC passthe Airbus screen testThales and CMC Electronics(Hall 4, C14a) have signed amulti-year contract for thedevelopment of thedevelopment andmanufacture of a liquidcrystal display (LCD)component for the multi-function control and displayunit (MCDU) on the AirbusA320 family.

The MCDU serves as themain communications inter-face between the pilot andany connected sub-system,such as the flight manage-ment system (FMS) or theaircraft communications,addressing and reportingsystem (ACARS).

CMC has been manufac-turing the MCDU keyboardfor Thales for more than fiveyears, and has producedmore than 3,000 units. Withthis new contract, CMC willnow manufacture the MCDUfront end, integrating theLCD, backlight and elec-tronics into the keyboard.

The projected volumeover the life of theprogramme is expected to bemore than 4,000 units andproduction is anticipated tobegin in late 2009.

India’s HCLjoins EADStop teamIndian engineering serv-ices provider HCLTechnologies (Hall 3, C10)is here to trumpet creden-tials established by itsrecent selection as a Tier1 supplier by Europeanaerospace conglomerateEADS.

On the eve of the showEADS named HCL as oneof just 28 preferredsuppliers out of anexisting pool of more thantwo thousand.

“This is a furtherexample of the growingstrategic relationshipbetween the aerospaceindustry and India,” saysRajeev Sawhney, thecompany’s president forEurope.

“With the breadth anddepth of our aerospaceengineering expertise, wehave been at the forefrontin developing that rela-tionship.”

EADS currently spendsabout €2 billion a year onengineering services suchas research, modelling,flight physics and design.

HCL supplies EADS withproduct engineering andtechnical publication serv-ices via the group’sdesign centre inBangalore.

HCL Technologiesworks from locations in18 countries and servesa number of sectorsbesides aerospace,including financial serv-ices, retail andconsumer, life sciencesand healthcare, tele-coms, and media andentertainment.

Cole Hedden: In talks. The SAMM option has cost-saving benefits.

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