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BAE Systems Land & Armaments was created on June 24, 2005, following the completion of BAE Systems plc's acquisition of United Defense and its merger with BAE Systems Land Systems. The L&A group is a subsidiary of BAE Systems Inc. and is responsible for the design, development and production of combat vehicles, ammunition, artillery systems, naval guns and missile launchers. In 2007 BAE Systems acquired Armor Holdings adding to the size of BAE Systems L&A significantly. In its 2005 Annual Report stated that the L&A group had sales of £1,266 million and EBITA of £42 million. This compares to sales of £482 million in 2004. [1]
[edit] HistoryUntil 2004 BAE Systems was a relatively small player in the land systems industry, however following the 2004 purchase of Alvis Vickers, the 2005 acquisition of United Defense and the acquisition of Armor Holdings in 2007 it is now the largest land systems defense contractor. BAE Systems was formed in 1999 by the merger of British Aerospace (BAe) and Marconi Electronic Systems (MES). BAe's land systems business was RO Defence, a major manufacturer of explosives, ammunition and small arms. MES owned Vickers Shipbuilding and Engineering Ltd, manufacturer of the M777 howitzer. On June 4, 2004 BAE Systems outbid General Dynamics for Alvis Vickers, the UK's principal land systems business. What had seemed a certain win for the US company was stopped by BAE Systems' surprise move. It has been seen as an attempt to keep such a strong competitor at bay in BAE Systems' "backyard." When Dick Olver was appointed Chairman of BAE Systems in July 2004 he ordered a review of the company's businesses which confirmed the attractiveness of the land systems sector. This shift in strategy was described as "remarkable" by the Financial Times.[2] On March 7, 2005 BAE Systems announced the $3,974,000,000 acquisition of United Defense Industries (UDI). UDI, a major competitor to General Dynamics, was primarily a land systems manufacturer, boosting BAE Systems' involvement in this sector and its sales in the important North American market. UDI manufactured combat vehicles, artillery systems, naval guns, missile launchers and precision guided munitions. BAE Systems Land and Armaments was formed in June 2005 in a reorganisation which saw BAE businesses in the United States placed into three "operating groups"; BAE Systems Land and Armaments, BAE Systems Electronics & Integrated Solutions; and BAE Systems Customer Solutions. Land and Armaments, headquartered in the United States as part of BAE Systems Inc, took control of BAE's existing land systems businesses. Land and Armaments has received regular contracts for the "reset" of Bradley armoured fighting vehicles. By August of the financial year 2006 BAE had received contracts totaling $477.9 million. [3] [edit] Organisation & product range
BAE Systems AB combines BAE Systems Bofors and BAE Systems Hagglunds:
[edit] ManagementLinda Hudson is president of BAE Systems Land & Armaments Operating Group. BAE Systems Land and Armaments, with headquarters at Arlington, Virginia, is a global leader in the design, development and production of combat vehicles, artillery systems, naval guns and missile launchers with nearly 17,000 employees at 30 locations in the U.S. and locations in the UK, Sweden and South Africa. Tom Rabaut was named President of the newly created BAE Systems Land and Armaments, he was previously Chief Executive Officer (CEO) and President of United Defense since January 28, 1994. Rabaut retired on 1 January 2007 and was succeeded by Linda Hudson. Hudson has led General Dynamics Armament and Technical Products and held senior management positions at Lockheed Martin, Martin Marietta, Ford Aerospace, and Harris Corp.[4] [edit] References
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