A report by consulting firmÂ McAleese & AssociatesÂ saysÂ BAE Systemsâ U.S. electronic systems sector saw its sales climb 11 percent to $2.8B during the first half of 2019 with a 14.8 percent operating margin and sector profit of $409M.
Jim McAleese, founder and principal atÂ McAleese & Associates and aÂ 2019 Wash100 winner, wrote that BAEâs U.S. platforms and services segment reported a 4 percent sales growth and a profit spike of 127 percent. Operating within the segment is the U.S. ship repair business, which posted $427M in total backlog.
BAE CEO Charles Woodburn provided updates on the M109 Paladin production. âWe are making slow, but steady progress on [M109] Paladin, remaining on track to achieve production of eight vehicles per month by year end,â he said during the results call.
Jerry DeMuro, president and CEO of BAEâs U.S. arm and a 2019 Wash100 winner, discussed the U.S. Armyâs Optionally Manned Fighting Vehicle program and the companyâs efforts to compete for Mobile Protected Firepower, Robotic Combat Vehicle-Heavy and Robotic Combat Vehicle-Medium initiatives.
âWith respect to OMFV, it is one ofâ¦five programs that make up the Armyâs Next Generation Combat Vehicle Program. We are participating currently in three â¦ Mobile Protected Firepower. We are heavily engaged and investing in the Robotic Combat Vehicle, both the medium and heavyâ¦OMFV, when we looked at the requirements, the investments, and the [Section 804] acquisition model, we thought the best opportunities for us were the MPF and robotic areas, as well as focusing on the backlog that we haveâ¦and [Armored Multi-Purpose Vehicle] will also play a roleâ¦We will see how the OMFV program goes, there may be an opportunity to come back and engage in that a little bit later as well, given the acquisition model,â DeMuro said.