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BAE SYSTEMS Strategy Underlined By Land Systems Orders Success

13 Sep 2005

BAE Systems has seen a series of early contract wins for its newly established Land and Armaments business, which together underline the successful rollout of its Land Systems strategy.

Mike Turner, BAE Systems Chief Executive Officer, said: Less than two years ago, the company had only a small foothold in this sector. Today the BAE Systems global Land and Armaments business is number two in the world with an annualised turnover of some 2 billion.

Recent contracts include:

* Remanufacture and upgrade to more than 500 Bradley Combat System vehicles, worth 613 million. The company will provide the latest electronic upgrades to this critical system for the US Army.

* A 77 million order to remanufacture and upgrade 59 M88A2 HERCULES Improved Recovery vehicles, and provide system technical support and spares. Under the contract modification, BAE Systems will remanufacture and upgrade 53 Vehicles for the US Army and six vehicles for the US Marine Corps.

* A 49 million contract for the upgrade 356 M113 Family of Vehicles (FOVs) to the latest A3 configuration for the US Army. The vehicles produced will be the M577A3 Command Post Carrier, the M1064A3 Mortar Carrier and the M1068A3 Standard Integrated Command Post (SICPS) Carrier.

* A contract with the Netherlands Defence Material Organisation for 74 BvS10 All Terrain Vehicles for the Royal Netherlands Marines. The vehicle is being procured in four variants; troop carriers, command, repair and recovery, and ambulance.

* A 500m order from the Netherlands for its CV90 armoured vehicle. The Netherlands Army will see the delivery of 184 infantry fighting vehicles.


In addition to these wins, the company now has the full rate production contract for the M777 lightweight howitzer for the US Marine Corps, following successful operational testing of the low rate production units. This contract will see the delivery of 495 howitzers over the next four years along with the upgrade of the 94 low rate units currently being delivered.

The strong growth demonstrated in land systems in the US is forecast to continue, with much of the near-term growth arising from an urgent need to upgrade and modify tracked vehicles for the US armed forces, driven in part by the very high utilisation in recent peacekeeping operations. Along with other, similar, activity this reset work is expected to generate sales of over 2 billion through to 2011.

Headquartered in the US, BAE Systems Land and Armaments operating group brings together the former the former United Defense land systems activities in the US and the Bofors activity in Sweden, alongside RO Defence and Alvis land systems businesses in the UK, the Hgglands business in Sweden and OMC in South Africa.


BAE Systems is an international company engaged in the development, delivery, and support of advanced defence and aerospace systems in the air, on land, at sea, and in space. The Company designs, manufactures, and supports military aircraft, combat vehicles, surface ships, submarines, radar, avionics, communications, electronics, and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years and is at the forefront of innovation, working to develop the next generation of intelligent defence systems. BAE Systems has major operations across five continents and customers in some 130 countries. The Company employs over 90,000 people and generates annual sales of approximately 14.8 billion through its wholly owned and joint-venture operations.

For further information, please contact:

Lisa Hillary-Tee
Tel: +44 (0) 1252 384934

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