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Boeing Sells Rocketdyne
Boeing Press Release:
"Boeing to Sell Rocketdyne Propulsion Unit to Pratt & Whitney ST. LOUIS, Feb. 22, 2005 - The Boeing Company [NYSE:BA] announced today that it has reached an agreement to sell its Rocketdyne Propulsion & Power business to Pratt & Whitney, a United Technologies company [NYSE:UTX], for approximately $700 million in cash. The transaction is subject to regulatory approvals and other customary closing conditions. Boeing expects to recognize a gain on the sale. Rocketdyne is primarily a rocket engine developer and builder, and provides booster engines for the Space Shuttle and the Delta family of expendable launch vehicles, as well as propulsion systems for missile defense systems. The divestiture includes sites and assets in California, Alabama, Mississippi and Florida. Approximately 3,000 people support the operations at those sites "This transaction makes sense for Boeing, for Rocketdyne's employees and customers, and for Pratt & Whitney," said Jim Albaugh, president and chief executive officer of Boeing Integrated Defense Systems. "The acquisition of Rocketdyne by Pratt & Whitney will benefit our customers, as Pratt & Whitney is a company dedicated to the business of propulsion and is in the best position to build upon Rocketdyne's proud heritage. I have great confidence that the proud legacy of Rocketdyne from Mercury to Saturn V to the Space Shuttle will be in good hands. The sale also reinforces our strategic business aim to be horizontally -- not vertically -- integrated." Albaugh said that Boeing would continue to build launch systems and that the divestiture would enable Boeing to serve its customers more effectively, while preserving the company's ability to contract with Rocketdyne for continued use of its capabilities and expertise. "UTC companies are at the cutting edge of technology in all business segments and we believe Rocketdyne's rich heritage of technology excellence and innovation is a great addition to our portfolio," said Louis R. Ch=EAnevert, president of Pratt & Whitney. "We look forward to working with Boeing, NASA, the Department of Defense and other customers to continue the high level of service that Rocketdyne has always provided." Rocketdyne Propulsion & Power was formerly owned by North American Aviation and Rockwell International, and has been the premiere rocket propulsion provider in the nation for more than a half-century. As part of Boeing Integrated Defense System's Launch & Orbital Systems segment, the business being divested generated nearly $700 million in revenue during 2004. Sales to Boeing have typically represented about a third of Rocketdyne's sales. From its beginnings following World War II, Rocketdyne has been at the forefront in rocket engine development, testing and performance. In the 1950s, Rocketdyne engines put the first U.S. satellites into orbit, and the company continued as an integral part of the Mercury, Gemini and Apollo programs that put humans on the moon. Rocketdyne supplied the main engines for the Space Shuttle in the 1980s and has continued to build booster engines for Atlas and Delta expendable launch vehicles. And recently, Rocketdyne developed and has flown the RS-68, the first large liquid-fueled American booster engine in a generation. Credit Suisse First Boston acted as financial advisor to Boeing on this transaction. United Technologies, based in Hartford, Conn., is a diversified company that provides high technology products and services to the commercial building industry and the military and commercial aerospace industry. In addition to Chubb, Otis, Carrier and UTC Power, United Technologies' companies include Pratt & Whitney, Hamilton Sundstrand and Sikorsky Aircraft. Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense businesses. Headquartered in St. Louis, Boeing Integrated Defense Systems is a $30.5 billion business. It provides network-centric system solutions to its global military, government, and commercial customers. It is a leading provider of intelligence, surveillance and reconnaissance systems; the world's largest military aircraft manufacturer; the world's largest satellite manufacturer and a leading provider of space-based communications; the primary systems integrator for U.S. missile defense and Department of Homeland Security; NASA's largest contractor and a global leader in launch services. Safe Harbor Statement / Forward-Looking Statements Certain statements contained in this press release are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and it is Boeing's intent that such statements be protected by the safe harbor created thereby. Words such as "expects," "believes" and similar expressions are used to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to: (a) the risk that the transaction may close more slowly than expected or not at all; (b) the risk that the cost savings arising out of the transaction may be less than anticipated, and (c) other risks and uncertainties detailed from time to time in Boeing's filings with the Securities and Exchange Commission." |
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Ed Kyle wrote:
Boeing Press Release: "Boeing to Sell Rocketdyne Propulsion Unit to Pratt & Whitney So much for the military having two engine sources for EELV. At the pace mergers are going, I suspect in 20 years there will be *one* single military contractor for aerospace in the USA. Perhaps they could get to call it Vickers? For old time's sake. |
#3
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quasarstrider wrote:
Ed Kyle wrote: Boeing Press Release: "Boeing to Sell Rocketdyne Propulsion Unit to Pratt & Whitney So much for the military having two engine sources for EELV. They still have two for the boosters (Energomash and United Technologies), but unless Mitsubishi carries on alone with MB-60, they're only going to have one for any upgraded second stage engines that might be developed. - Ed Kyle |
#4
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Ed Kyle wrote:
Boeing Press Release: "Boeing to Sell Rocketdyne Propulsion Unit to Pratt & Whitney Some more information on this. According to "http://www.venturacountystar.com/vcs/sv/article/0,1375,VCS_239_3572430,00.html" Boeing did not sell Rocketdyne's Santa Susanna Field Lab as part of the deal. The RS-27A qualification testing that goes on there now will transition to the Force Research Laboratory at Edwards Air Force Base. Then Santa Susanna will be shut down to become a big environmental cleanup headache. Pratt will get Rocketdyne's Canoga Park factory, where 2,600 people work (now). - Ed Kyle |
#5
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Ed Kyle wrote:
quasarstrider wrote: Ed Kyle wrote: Boeing Press Release: "Boeing to Sell Rocketdyne Propulsion Unit to Pratt & Whitney So much for the military having two engine sources for EELV. They still have two for the boosters (Energomash and United Technologies), but unless Mitsubishi You mean this? http://www.pratt-whitney.com/prod_space_rd180.asp "The RD-180 booster engine is offered by RD AMROSS, a partnership between the world's two premier propulsion companies - Pratt & Whitney of the United States and NPO Energomash of Russia." It it basically the same as a Boeing Sea Launch/Energia parallel stage engine cut in half. FYI, Pratt & Whitney is a United Technologies company. Several people in the military were not particularly pleased about having a critical component (RD-180) exclusively manufactured in a foreign country to begin with. Now this... There are two EELV rocket families: Delta IV and Atlas V. Delta uses a Rocketdyne (used to belong to Boeing, now will belong to Pratt & Whitney) first stage engine, Atlas V uses a RD AMROSS (partnership between NPO Energomash Pratt & Whitney) RD-180 first stage engine. So who is left? ATK, Aerojet and the chicks (SpaceDev, SpaceX, etc)? carries on alone with MB-60, they're only going to have one for any upgraded second stage engines that might be developed. I suspect the USAF will not like this one bit. They traditionally have used two sources for aircraft engines (usually GE and Pratt & Whitney). |
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quasarstrider wrote:
Ed Kyle wrote: quasarstrider wrote: Ed Kyle wrote: Boeing Press Release: "Boeing to Sell Rocketdyne Propulsion Unit to Pratt & Whitney So much for the military having two engine sources for EELV. They still have two for the boosters (Energomash and United Technologies), but unless Mitsubishi You mean this? http://www.pratt-whitney.com/prod_space_rd180.asp "The RD-180 booster engine is offered by RD AMROSS, a partnership between the world's two premier propulsion companies - Pratt & Whitney of the United States and NPO Energomash of Russia." Hardly a partnership. Pratt & Whitney doesn't do much more than open the box. Energomash is the real provider - and it hasn't proved eager to license production in the U.S.. UTC will provide RS-68 through its Rocketdyne division while its Pratt & Whitney continues to open RD-180 boxes. So who is left? ATK, Aerojet and the chicks (SpaceDev, SpaceX, etc)? After the fast-pace 90s, the world found itself with a massive launch vehicle/provider surplus. Something had to go. We're seeing the fallout. I suspect the USAF will not like this one bit. They traditionally have used two sources for aircraft engines (usually GE and Pratt & Whitney). Sow = Reap. NASA and the Air Force helped bring this on by neglecting liquid propulsion technology for 30 years. It hasn't helped that the Pentagon kept Boeing in the penalty box for so long. Boeing's ethics failures are, of course, a big part of the problem too. And the U.S. government continues to foster U.S. manufacturing decline through its bizarre trade policies. Policies that left no truly competitive U.S. bidders for the President's helicopter, for example. Policies that will allow EADS to work for more and more U.S. taxpayer dollars, etc.. Both of the upper stage developments (MB-60 and RL-60) were/are largely non-U.S. efforts. If current trends continue, RS-68 may prove to be the last big U.S. rocket engine. - Ed Kyle |
#7
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In article .com,
Ed Kyle wrote: And the U.S. government continues to foster U.S. manufacturing decline through its bizarre trade policies... Not to mention the four-letter word "ITAR". The front-page story of the latest issue of Space News is a European multi-government initiative to establish European sources for satellite components currently available only from the US. They're already talking to Japan and Russia about whether those countries want to participate. -- "Think outside the box -- the box isn't our friend." | Henry Spencer -- George Herbert | |
#8
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Ed Kyle wrote:
And the U.S. government continues to foster U.S. manufacturing decline through its bizarre trade policies. Policies that left no truly competitive U.S. bidders for the President's helicopter, for example. Policies that will allow EADS to work for more and more U.S. taxpayer dollars, etc.. Both of the upper stage developments (MB-60 and RL-60) were/are largely non-U.S. efforts. But it gets better - EU will lift the arms embargo to China and teh US Congress is certain to follow up on even more onerous export terms and additional restrictions. So not just will BAE and EADS and others have an increased market, they will have an increased market and less competition and everybody more inclined to not buy from tehir US competitors. One really couldn't wish a worse thing to happen to their high-tech competitors than US lobbyists and lawmakers. - Ed Kyle -- Sander +++ Out of cheese error +++ |
#9
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Henry Spencer wrote:
In article .com, Ed Kyle wrote: And the U.S. government continues to foster U.S. manufacturing decline through its bizarre trade policies... Not to mention the four-letter word "ITAR". The front-page story of the latest issue of Space News is a European multi-government initiative to establish European sources for satellite components currently available only from the US. They're already talking to Japan and Russia about whether those countries want to participate. It will be interesting to see how the present developments will affect Canada - it might end up integrating even more with Europe. -- Sander +++ Out of cheese error +++ |
#10
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Henry Spencer wrote:
In article .com, Ed Kyle wrote: And the U.S. government continues to foster U.S. manufacturing decline through its bizarre trade policies... Not to mention the four-letter word "ITAR". No doubt about that. The U.S. govt. took the gun, loaded it, aimed it at its own foot, and pulled the trigger. I keep voting against these guys (both parties have 'em), but not enough of my fellow citizens have caught on to the problem. ITAR merely froze U.S. "high-tech" at 1997-ish standards. The rest of the world is moving on, threatening to leave the U.S. in the dust. - Ed Kyle |
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