Fincantieri's profits tumbled in 2008

BRUSSELS, April 7 (UPI) -- Fincantieri's profits tumbled in 2008

Italian shipbuilding company Fincantieri saw its profits fall by nearly 75 percent in 2008.

Fincantieri is effectively a nationalized company controlled by the Italian government. Its net profits fell from $48.3 million in 2007 to $13.4 million in 2008, even though revenue was boosted by 8 percent to $3.93 billion in 2008, according to a statement from the company.

Fincantieri blamed the failure to convert the added revenue into additional profit on the steep rise in the cost of raw materials.

The company said the global financial crisis that began on Wall Street seven months ago was the main cause for a fall in orders. The company won $5.6 billion in new orders in 2007 but only $3.35 billion in 2008.

Fincantieri said things became far worse after the financial crisis began. Starting in September, new orders almost disappeared.

The company still has a huge number of contracts worth $14.49 billion on its books, and it is currently completing a number of contracts for the Italian government. However, it also plans to ask the Italian government for about $400 million in capital.

BAE to deliver Terrier five years late

Britain's new fleet of Terrier armored vehicles won't be ready for operational service until 2013 -- five years behind schedule, Defense News reported last week. The first of them was supposed to have been delivered in December 2008.

The Terrier is a tracked route-clearing and earthmoving vehicle. It was commissioned by the British Ministry of Defense in 2002. The ministry selected BAE Systems to build 60 vehicles by the end of 2008. However, the ministry and BAE didn't sign the production contract until very recently.

As a result, the Royal Engineers of the British army were forced to hurriedly purchase 12 JCB High Mobility Engineer Excavators after their fleet of Combat Engineering Tractors was taken out of service last year, since the Terrier was meant to replace them.

The machinery is urgently needed for Britain's military operations in Afghanistan in support of the U.S.-led NATO mission there.

The long delays were partially caused by long lag times in adjustments to the prototype demonstration vehicle. Also, the Ministry of Defense changed its specifications for the Terrier's communications system, which slowed things down further.

The Ministry of Defense late in the day also demanded more armor for the vehicles due to be sent to Afghanistan to further protect them from the threat of improved improvised explosive devices that have been a major cause of U.S. military casualties in Iraq.

BAE Systems may have to shoulder some of the costs from the long delays in the program.

NATO orders new communication system from EADS

NATO's Response Force is going to get its own personalized deployable communication and information system.

All nations participating in the Response Force will eventually use this uniform system. Previously, the communication systems used depended on which NATO nation was leading the Response Force at the time.

The European Aeronautic Defense and Space Co.'s Defense and Security division, working with Booz Allen Hamilton, Cisco, OSPL, Selex and Hewlett-Packard, was awarded the $59 million deal and is expected to deliver the goods within 2-1/2 years.

The system will be able to deliver to Response Force commanders deployed in theater the capability to communicate via voice, data and multimedia connections. EADS and its partners beat out France-based Thales in the competition to land the contract.

EADS Defense and Security could also now land a logistical-support contract tied to the communication system that would be worth around $20 million.