Home / Financial Reports / McAleese & Associates: BAE’s US Electronic Systems Business Posted 11% Sales Growth in First Half of 2019

McAleese & Associates: BAE’s US Electronic Systems Business Posted 11% Sales Growth in First Half of 2019

Jim McAleese

A report by consulting firm McAleese & Associates says BAE Systems’ 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 at McAleese & Associates and a 2019 Wash100 winner, wrote that BAE’s 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. “We are making slow, but steady progress on [M109] Paladin, remaining on track to achieve production of eight vehicles per month by year end,” he said during the results call.

Jerry DeMuro, president and CEO of BAE’s U.S. arm and a 2019 Wash100 winner, discussed the U.S. Army’s Optionally Manned Fighting Vehicle program and the company’s efforts to compete for Mobile Protected Firepower, Robotic Combat Vehicle-Heavy and Robotic Combat Vehicle-Medium initiatives.

“With respect to OMFV, it is one of…five programs that make up the Army’s Next Generation Combat Vehicle Program. We are participating currently in three … Mobile Protected Firepower. We are heavily engaged and investing in the Robotic Combat Vehicle, both the medium and heavy…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 have…and [Armored Multi-Purpose Vehicle] will also play a role…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,” DeMuro said.

Check Also

FirstNet Roadmap Outlines Six ‘High-Priority’ Areas; AT&T VP Stacy Schwartz Quoted

The First Responder Network Authority detailed a five-year plan to advance a nationwide public safety broadband system with regard to the network core, capacity and coverage, situational awareness, information exchange security, voice communications and user experience, Government Technology reported Friday.

Navy Awards Raytheon $367M Close-In Weapon System Modernization Contract

Raytheon (NYSE: RTN) has secured a potential four-year, $367.2M contract from the U.S. Navy to update a radar-guided missile defense system and related hardware for domestic and foreign military customers.