General Dynamics to Acquire Steyr Spezialfahrzeug of Austria
FALLS CHURCH, Va. – General Dynamics (NYSE: GD) plans to acquire Steyr Daimler Puch Spezialfahrzeug Aktiengesellschaft & Company KG (Steyr Spezialfahrzeug) and its parent company, SSF-Holding GmbH, of Austria, on October 2, 2003. General Dynamics had previously acquired 25 percent of the parent company, in 1999.
The acquisition will be immediately accretive to General Dynamics’ earnings, and General Dynamics anticipates that Steyr Spezialfahrzeug will generate approximately $230 million in sales in 2003. The company has a backlog of approximately $300 million.
Steyr Spezialfahrzeug, which has approximately 400 employees, will become part of General Dynamics’ Combat Systems group. There are no plans to relocate any production activity from present locations as a result of the acquisition.
Hans Michael Malzacher, current chairman of the managing board, will remain and will be responsible for the unit’s performance. He will report to Arthur J. Veitch, executive vice president and group executive for General Dynamics Combat Systems.
“Steyr Spezialfahrzeug will significantly broaden General Dynamics’ combat vehicle offerings and creates additional opportunities for us in the United States, Europe and other parts of the world,” said Veitch.
Headquartered in Vienna, Austria, Steyr Spezialfahrzeug developed the Pandur family of wheeled combat vehicles and began production in 1996. About 285 Pandur 6x6 wheeled armored vehicles are in service or on order worldwide. Projects for 6x6 and 8x8 Pandur vehicles are under evaluation in several countries. General Dynamics’ Land Systems unit has been the U.S. licensee for Pandur vehicles since 1999.
Steyr Spezialfahrzeug also makes the Ulan tracked infantry fighting vehicles and family of variants. Production of 112 Ulan vehicles for the Austrian Army is in progress, and 50 units have been fielded.
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 64,600 people worldwide and anticipates 2003 revenues of $15.5 billion. The company has leading market positions in mission-critical information systems and technologies, land and amphibious combat systems, shipbuilding and marine systems, and business aviation.
Any forward-looking statements in this press release are based on management’s expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "anticipates," "scheduled," "estimates," variations of these words and similar expressions are intended to identify forward-looking statements which include but are not limited to projections of revenues, earnings, segment performance, cash flows and contract awards. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation: the company’s successful execution of internal performance plans; performance issues with key suppliers and subcontractors; the status or outcome of legal and/or regulatory proceedings; the status or outcome of labor negotiations; changing priorities or reductions in the U.S. government defense budget; termination of government contracts due to unilateral government action; and the timing and occurrence (or non-occurrence) of circumstances beyond the company’s control.
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General Dynamics Corporation (ticker: GD, exchange: NYSE)
News Release - Tuesday, September 30, 2003
Press Contact: (703) 876-3199
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