IAI’s 2010 second quarter and half-year financial report released today reflects continued improvement in the company’s business performance, despite perceived slowdown in global defense market and slow recovery in commercial aviation market. IAI has reported today sales of US$840 million, an increase of 26% over the second quarter of 2009 and about 9% increase over the first quarter of 2010. In total, IAI’s sales in the first half of 2010 amount to $1.6 billion, $0.2 billion over the performance in the first half of 2009. The company’s backlog has increased from the beginning of the year by $1.3 billion, reaching $9.1 billion. “This backlog is sufficient to support our operations for about three years, adding to the near term and long term stability and growth of IAI” said IAI’s President and CEO Yitzhak Nissan.

The net profit in the 2nd quarter was $36 million, representing an increase of 72% over the 2nd quarter of 2009. The net profit reported in the two quarters of 2010 ads up to $55 million, reflecting 49% increase over the first half of last year. IAI continued its research and development, investing $64 million since the beginning of 2010 (14% increase over 2009). Notable areas of such company funded investments were the G250 business jet and Heron TP unmanned aerial system.

IAI’s Chairman of the Board Yair Shamir expressed his satisfaction from the results, noting that both defense and commercial activities represented significant growth. Defense contracts, being the majority of the company’s sales have increased by 17% ($645 million) in the reported period. Orders for commercial aviation and other civilian programs totaled $195 million in the 2nd quarter of 2010, an of 71% over the second quarter of 2009.

IAI’s 2010 second quarter and half-year financial report released today reflects continued improvement in the company’s business performance, despite perceived slowdown in global defense market and slow recovery in commercial aviation market. IAI has reported today sales of US$840 million, an increase of 26% over the second quarter of 2009 and about 9% increase over the first quarter of 2010. In total, IAI’s sales in the first half of 2010 amount to $1.6 billion, $0.2 billion over the performance in the first half of 2009. The company’s backlog has increased from the beginning of the year by $1.3 billion, reaching $9.1 billion. “This backlog is sufficient to support our operations for about three years, adding to the near term and long term stability and growth of IAI” said IAI’s President and CEO Yitzhak Nissan.

The net profit in the 2nd quarter was $36 million, representing an increase of 72% over the 2nd quarter of 2009. The net profit reported in the two quarters of 2010 ads up to $55 million, reflecting 49% increase over the first half of last year. IAI continued its research and development, investing $64 million since the beginning of 2010 (14% increase over 2009). Notable areas of such company funded investments were the G250 business jet and Heron TP unmanned aerial system.

IAI’s Chairman of the Board Yair Shamir expressed his satisfaction from the results, noting that both defense and commercial activities represented significant growth. Defense contracts, being the majority of the company’s sales have increased by 17% ($645 million) in the reported period. Orders for commercial aviation and other civilian programs totaled $195 million in the 2nd quarter of 2010, an of 71% over the second quarter of 2009.

Dassault Rafale F-3 Omnirole Fighter, loaded with an air-to-air and air-to-ground weapon mix. Photo: Dassault. Photo: Dassault

The Indian Air Force has concluded the technical assessment of six fighter aircraft proposed for the Medium MultiRole Combat Aircraft (MMRCA) program, paving the way for the Ministry of Defense to decide on the Air Force’s US$10 billion (Rs 42,000 crore) acquisition of 126 new fighters plus options for additional 63. The six proposals considered by the Indians included the Typhoon, proposed by the European Eurofighter consortium, the French Rafale from Dassault, the Russian MiG-35 from United Aircraft Corporation subsidiary RSK-MiG, the Gripen E/F, proposed by the Swedish Saab group; Two proposals were submitted by U.S. companies – Boeing offered the Super Hornet F/A-18 E/F and Lockheed Martin proposed the F-16 E/F Fighting Falcon. The Air Force report provides a technical assessment of the six candidates.

The commercial proposals, including industrial cooperation and local participation will be evaluated by the MOD beginning this week. According to unconfirmed media reports, the Indians, seeking a modern fighter, have rated both European fighters – the Rafale and Typhoon as the most preferred types and both are shortlisted for the next phase with the Boeing Super Hornet considered a ‘marginal option’. The Swedish Gripen was determined to be redundant to India’s indigenous Teja; both the Russian MiG-35 and the U.S. F-16E/F are based on obsolete platforms (both are based on 40 year old platform designs) and hence are not conforming with the program’s  primary directive.

However, the weight of the technical parameters in the final evaluation is not exclusive and determinant, since final decisions on the MMRCA will be based on the economic and political interests. New Delhi’s aim to tighten its relations with Europe is clear, and such deals are likely, since India has signed significant orders with Franch and the U.K. in the past.

However, Russia still has the inroad to India’s military and politics and, therefore, despite its financial alleged insufficient engine lifespan shortcoming, “the MiG-35 is likely to remain in the picture until the end” according to Sergei Kornyev, the department head of Russia’s Air Force special equipment and services at a press conference in Farnborough last month. Facing serious consequences of the planned reduction of 90 Typhoons destined for the RAF and Italian Air Force, Eurofighter is hopeful that winning the MMRCA program could compensate for these production losses and boost the program research and development for the advanced, multirole Tranch 3 phase.

For Dassault, being shortlisted by the Indian could drive Brazil to finally announce its FX-2 decision in favor of the French fighter. Winning both program could transform the Rafale from a lame duck into the leading fighter in the export market, offering the French, Indian and Brazilian aerospace industries attractive prospects for the future.

The final decision on the Indian MMRCA fighter of choice could be taken around 2011-2012. Indian Air Force officials are hopeful that Initial deliveries could be expedited and arrive in India two years after the contract award.

In addition to the ongoing MMRCA selection, India defense ministry has announced plans to increase India’s orders for Su-30MKI fighters by 42 aircraft, to be delivered over four years beginning 2014. The $4.3 billion deal will increase the number of aircraft to be produced by Hindustan Aeronautics Ltd. (HAL) to 200, setting India’s inventory of Su-30MKI fighters at at 250. India is also cooperating with Russia on the development of the next generation T-50 (PAK-FA) fifth generation fighter developed by Sukhoi. The program, valued at about US$8 billion is partly financed by New Delhi.

Elbit Systems is expanding its family of man portable unmanned ground systems with the introduction of two new models. During a recent exhibition the company displayed the new robots, in addition to a wide range of advanced land and C4I solutions. The new members of the VIPeR family of intelligent and portable robots include the Mini-VIPeR and Maxi-VIPeR, which join the VIPeR robot, already operational in the Israel Defense Forces under the Hebrew name “Pazit.”

All VIPeRs are designed for portability and high mobility; the robots are configurable for multiple types of missions by add-on sensors, modules and payloads, tailored to specific tasks. The Viper is controlled by a single operator, and is designed to negotiate obstacles typical of an urban environment, such as climbing stairs and rubbles, when performing surveillance, reconnaissance and support troops in urban warfare missions.

The VIPeR vehicle uses the “Galileo Wheel”, a patented wheel that can be transformed on the move into a triangular track, developed by Galileo Mobility Instruments ltd. This unique automotive system enables the robot to climb stairs, negotiate difficult terrain, move over barricades, dense vegetation and other obstacles.
The Mini-VIPeR and Maxi VIPeR robots use a more common track system. While the two new robots bear some resemblance to the Beagle, developed by Elbit Systems of America, a closer look at the two new robots reveal more similarities to the locally designed VIPeR. The larger version uses a wide, heavy duty track system, adapted from the VIPeR for outdoor operation over rugged terrain. The smaller robot uses a narrow track, more suitable for indoor operation.

Elbit Systems' Mini VIPeR small, portable unmanned vehicle. Photo: Noam Eshel, Defense Update

Both have body mounted sensors, flat top and bottom surfaces, for the mounting of mission payloads. The Mini-VIPeR is a light-weight, one-person portable system (weighing approximately 3.5 kg), equipped with advanced sensors that allow full operation in adverse terrain. Thrown into a dark tunnel or tossed through a window, into a room, the mini-Viper allows warfighters to survey structures before entering. The larger, yet compact Maxi-VIPeR robot is designed to carry sensors and tele-operated manipulator arms, for the handling of unexploded devices and other hazardous materials including radioactive materials.

It has been widely established by counter-terror agencies around the world, that terror groups remain highly interested in such “dirty playthings” writes Defense-Update.com analyst David Eshel in today’s post. Al Qaeda’s senior leadership has publicly expressed a desire to acquire some weapons of mass destruction, including radiological weapons, with which to attack western states. Since September 11, U.S. officials have recovered many documents detailing al Qaeda’s pursuit of such weapons.

Just two weeks ago, Adnan el-Shukrijumah, 35, an American citizen, high on the FBI’s most-wanted list, was named as an accomplice in the New York subway bomb plot with Najibullah Zazi, an 25 year Afghan-born al Qaeda weapons expert, residing in Colorado. He was arrested in 2009, charged with conspiracy to commit murder with weapons of mass destruction. Meanwhile, Shukrijumah a trained nuclear technician, is still a fugitive, hunted by the US Intelligence agencies offering $5 million for for information leading directly to the capture. He was allegedly tasked by al Qaeda with carrying off a so-called “American Hiroshima”, having sought radioactive material from a university in Ontario, Canada. News reports alleged that this was an attempt to construct a “dirty bomb”.

More on the ‘Dirty Bomb’ plot in today’s Defense Update News Analysis: “A ‘Dirty Bomb’ Is Currently al Qaeda’s Favorite Weapon“

Lockheed Martin (NYSE:LMT) is developing a new Kinetic Energy Net (KEN) armor concept for military rotorcraft and aircraft, which could also find application in future combat vehicles. In April 2010 the company has won a US$1.5 Million from the U.S. Army Applied Aviation Technology Directorate to continue continue development of the KEN armor design.

KEN is a modular, lightweight composite armor system offering high protection weight levels lighter than current aircraft armor. One of the advantages of KEN is its integration into the aircraft structure, instead of attaching plates to the fuselage. By applying advanced ballistic materials and experimental strike faces, current KEN applications save about 13 percent of weight, compared to advanced ceramic and composite armor designs. Lockheed Martin’s goal is to achieve further weight reduction up to 40 percent in the next phase of development, without losing protective capability.

The company’s Missiles and Fire Control division also develops the TekShield – a unique ceramic design claimed to be superior and lighter than legacy ceramic armor. TekShield provides a balanced protection from blast and ballistic threats, including high speed projectiles and fragments. This new armor technology is scalable to meet specific threats, from small caliber rifles and mid-range cannons to IEDs and other explosive devices.

The Russians are interested i buying 1700 locally assembled M65 LMV from Iveco. Photo: Iveco

The Russian Defense Ministry is going to set up a joint assembly line with the Italian automaker Iveco to produce LMV M65 tactical vehicles in Russia, the Kommersant daily reported today. The decision is raising significant opposition among local manufacturers. The local alternative to the Italian vehicle is the  Russian Tigr (Gaz-233014 ), also dubbed as the ‘Russian HMMWV’. This vehicle has entered service with the Russian Army in 2006. The Tigr was developed by the privately owned company Russkie Mashiny. The Russian vehicle is currently going through a modification, applying a balanced armor and mobility package that will bring it to par with comparable western designs and will position it competitively with the locally produced LMVs.

The LMV M65 is a light multirole armored vehicle developed in 2001 by Iveco Defense Vehicles. It is designed with high level of protection against anti-tank and anti-personnel mines, small arms and IEDs.  The LMV has successfully operated in Iraq and Afghanistan, primarily with the Italian forces. The Brits have recently deployed to Afghanistan their ‘Panther‘ version of the vehicle.

According to the Russian sources, the local production of the vehicle could be done by the Russian state corporation Rostekhnologii, currently negotiating with Iveco on launching the joint venture with planned minimum capacity of 500 vehicles per year. The production could utilize one of the assembly lines of truck manufacturer KamAZ and. The vehicles are destined for the Russian Interior Ministry and Federal Security agencies. The Russian Defense Ministry plans to spend about one billion US$ (30 billion rubles) on the program, acquiring 278 Italian vehicles in 2011 and 2012, and during the next two years the volumes of supplies will be increased to 458 vehicles per year.  In 2015, the ministry will buy 228 vehicles and 75 vehicles in 2016. The cost per vehicle is expected to be around US$400,000.