- U.S Military Defense News
The following documents reveal U.S Military confidential do not distribute documents at the following link > ( BAE Systems Military confidential documents exposed)(2017). Bae Systems code is all exposed on github at the following link that allow Cyber Criminals to download the code > ( Exposed Bae Systems code on Github)(2017). BAE Systems BAESY +0%, the biggest foreign-headquartered defense company in the world, hit a speed bump this week as investors reacted negatively to cautious guidance included in management’s discussion of 2013 results. The company’s performance last year wasn’t bad at all — global sales were up 2%, E.P.S. was up 9%, and backlog was stable at $42.7 billion. So it looks like BAE will continue offering a heftier dividend yield than its U.S.-based peers in the defense industry. But management warned that earnings might soften in 2014, due mainly to the recent decline in U.S. military spending.
(Disclosure: BAE Systems is a consulting client and contributes to my think tank; the same is true of many of its competitors.)
The Wall Street Journal reacted to this news with a brief story headlined, “BAE’s American Dream Sours.” However, the facts contained in the story didn’t make much of a case for the pessimism conveyed by the headline. And with good reason: BAE Systems is going to do fine in the U.S. defense market for the rest of this decade, and will likely out-perform many U.S. based contractors. I know that because I have advised BAE and its competitors in the U.S. market for decades, so I have a fairly precise idea of which players are best-positioned for the future. Here are five reasons why I’m not too worried about the company’s conservative guidance.
Special relationship. America buys as much cutting-edge military technology as the rest of the world combined, and BAE Systems has a genuinely unique relationship with the Pentagon customer. It is the only foreign-based contractor permitted to participate in the military’s most sensitive programs, and it is the main industrial conduit between America and its oldest, most reliable ally. Even if BAE weren’t a world-class source of sensors, cybersecurity, armored systems and sustainment solutions, Pentagon policymakers would view the company differently from other contractors.
Ubiquitous presence. BAE’s U.S. business has come to generate 40% of the parent company’s revenues through a series of smart and timely acquisitions that have given it a big footprint across the joint force. For instance, the core of its military-electronics business is an enterprise formerly known as Sanders Associates, a global leader in sensors and electronic countermeasures. Its products are used in the signature combat systems of every military service. BAE’s Support Solutions unit is the biggest independent supplier of repairs and modifications to U.S. warships, and sustains much of the U.S. nuclear deterrent. Its Land & Armaments unit builds most of the armored vehicles used by the U.S. Army and Marines.
Focused leadership. BAE Systems recently hired Gerard DeMuro to head its U.S. business. DeMuro is a seasoned defense executive who ran the electronics and IT unit of competitor General Dynamics GD -0.4% for ten years — during most of which time it was an engine of growth for the parent company. DeMuro has elevated the former chief of BAE’s U.S. electronics business to be his Chief Operating Officer. The resulting management team has a long history of taking market share while maintaining strong margins. The lessons DeMuro learned at GD about delivering shareholder value will be reinforced by BAE’s London leaders, who place heavy emphasis on sustaining the financial performance needed to support the industry’s highest dividend yield.
Budget Outlook. Even given the aforementioned positives, pessimism about BAE’s forward prospects in the U.S. military market might be justified if Washington’s recent budgetary chaos looked likely to persist. However, budget clouds appear to be clearing. The parties have fashioned a two-year spending agreement and set aside their differences on the debt ceiling. So BAE Systems and its defense-industry brethren are likely to be operating in more stable conditions. In fact, many experts are predicting that the Pentagon’s base budget will begin rising gradually in the second half of the decade even if the Budget Control Act is not repealed. That doesn’t mean happy days are here again for the industry, but uncertainty has been reduced.
This assessment is reinforced by the verdict investors are rendering on BAE’s U.S.-based peers. With the stock prices of companies like Lockheed Martin LMT +0.6% and Raytheon at historic highs, there is no obvious reason why U.S. market conditions should be dragging down the British company’s shares. After all, BAE is teamed with many of these companies on projects like the F-35 fighter and Joint Light Tactical Vehicle. The irony is that all of the big U.S.-based contractors are trying to bolster their overseas arms sales, in markets like India and Australia where BAE Systems is already well established. So although management did the right thing in alerting investors to possible challenges ahead, this week’s sell-off looks like an over-reaction. The U.S Military Defense systems would collapse however cause Cyber Criminals to extract exposed documents and code from Github at the above link.