WASHINGTON - A U.S. intelligence official said China's new Xi'an H-20 stealth bomber likely doesn't come close to matching the capabilities of advanced stealth aircraft from the U.S. like the B-2 or the new B-21. China originally announced development of its new bomber in 2016. Chinese officials said the H-20 should be unveiled soon, which they have been saying for several years.

“The thing with the H-20 is when you actually look at the system design, it's probably nowhere near as good as U.S. [low observable] platforms, particularly more advanced ones that we have coming down. They've run into a lot of engineering design challenges, in terms of how do you actually make that system capability function in a similar way to a B-2 or B-21,” the official said.

U.S. officials had a similar take on China's J-20 fighter jet. U.S. intelligence has also questioned whether China has the "operational proficiency" to use its newest platforms. China's military lacks the combat experience that U.S. operators have, and Beijing has also been dealing with corruption in the military that also hinders performance.

Source: Defense One
Associated URL: https://www.defenseone.com/threats/2024/04/china-bomber/395972/?oref=defenseone_today_nl&utm_source=Sailthru&utm_medium=email&utm_campaign=Defense%20One%20Today:%20April%2023%2C%202024&utm_term=newsletter_d1_today

NAVAL AIR STATION CORPUS CHRISTI, Texas - The U.S. Navy received the first two operational T-54A multi-engine training system aircraft last week at Naval Air Station Corpus Christi, Texas.

The T-54A will replace the aging T-44C Pegasus aircraft, which will begin sundown within six months. The T-54A features a pressurized aircraft cockpit with side-by-side seating and a jump seat. It will provide advanced instrument and asymmetric engine handling training to student naval aviators selected for multi-engine fleet communities.

Additionally, the aircraft’s technology will capture data that allows for Conditioned-Based Maintenance Plus, a capability that enables the Navy to trend aircraft health over time to facilitate improved maintenance planning and efficiency. The T-54 incorporates the latest avionics and navigational updates, including a state-of-the-art cockpit with technology advances in the flight management system.

The Navy may procure up to 64 T-54 aircraft per the contract it awarded to Textron in 2023. Aircraft deliveries are scheduled through calendar year 2026. The T-54 will meet advanced multi-engine and advanced tilt-rotor training requirements for the Navy, Marine Corps, Coast Guard and select U.S. allies through 2055.

Source: Naval Air Systems Command
Associated URL: https://www.navair.navy.mil/news/Navy-Accepts-First-Delivery-T-54A-Training-Aircraft/Mon-04222024-0947

BETHESDA, Md. -- For the first quarter of 2024, Lockheed Martin Corporation reported net sales of $17.2 billion, up 14 percent compared to $15.1 billion in the first quarter of 2023. Net earnings in the first quarter of 2024 were $1.5 billion compared to $1.7 in the first quarter of 2023.

"Our strong start to 2024 demonstrates our continued success designing, developing and delivering 21st Century Security solutions in support of integrated deterrence for customers around the world. These first quarter results reinforce our confidence in our ability to achieve the full year financial expectations we set in January," said Lockheed Martin Chairman, President and CEO Jim Taiclet. "First quarter sales increased significantly year-over-year and we generated robust free cash flow of nearly $1.3 billion, while taking assertive actions to further strengthen production capacity. In addition, we continued our disciplined and dynamic capital deployment by investing over $700 million into R&D and capital projects and returned significant capital to shareholders through dividends and share repurchases as we remain committed to delivering meaningful free cash flow per share growth over the long-term.

"Our $159 billion backlog includes several large National Security Space awards in the quarter and attests to the breadth of our portfolio, depth of our technical expertise, and understanding of our customers' needs. These capabilities uniquely position us to lead the realization of joint all domain operations, including reliable battle management and command and control systems integrated across multiple domains, military services, and allied forces. We remain exceptionally focused on the execution of the F-35 program, working with our customers and suppliers to implement TR-3 capabilities, and are encouraged by the progress towards delivery of the first TR-3 configured aircraft."

INDUSTRY SEGMENTS

Aeronautics

Aeronautics' net sales in the first quarter of 2024 increased to $6.8 billion, or 9%, compared to $6.3 billion the same period in 2023. The increase was primarily attributable to higher net sales of $305 million on the F-35 program due to higher volume on production, development and sustainment contracts; $155 million on classified programs driven by higher volume; and $60 million on the F-16 program due to the ramp up on production.

Aeronautics' operating profit in the first quarter of 2024 was $679 million comparable to $675 million in the same period in 2023 . Operating profit increased $50 million on the F-16 program as operating profit for the first quarter of 2023 reflects the impact of unfavorable profit adjustments on a production contract and sustainment contracts as a result of schedule delays related to software and technical specification risks that did not recur in the first quarter of 2024. This increase was partially offset by lower operating profit of $30 million on the F-35 program primarily due to lower net profit adjustments on production contracts as a result of higher than anticipated material costs, partially offset by higher volume described above. Total net profit booking rate adjustments were $40 million lower in the first quarter of 2024 compared to the same period in 2023.

Missiles and Fire Control

MFC's net sales in the first quarter of 2024 increased to $3.0 billion, or 25% compared to $2.4 billion in the same period in 2023. The increase was primarily attributable to higher net sales of $460 million for tactical and strike missile programs due to production ramp up on Guided Multiple Launch Rocket Systems (GMLRS), High Mobility Artillery Rocket System (HIMARS), Joint Air-to-Surface Standoff Missile (JASSM) and Long Range Anti-Ship Missile (LRASM) programs; and $100 million for integrated air and missile defense programs primarily due to higher volume on PAC-3 and Terminal High Altitude Area Defense (THAAD).

MFC's operating profit in the first quarter of 2024 decreased to $311 million, or 18%, compared to $377 million in the same period in 2023. The decrease was primarily attributable to lower operating profit for tactical and strike missile programs due to a $100 million reach-forward loss recognized for an option on a classified program and an unfavorable profit adjustment on HELLFIRE as a result of additional costs expected to be incurred associated with a contract claim, partially offset by the production ramp up described above. Total net profit booking rate adjustments, inclusive of the $100 million loss described above, were $120 million lower in the first quarter of 2024 compared to the same period in 2023.

Rotary and Mission Systems

RMS' net sales in the first quarter of 2024 increased to $4.1 billion, or 16% compared to $3.5 billion in the same period in 2023. The increase was primarily attributable to higher net sales of $295 million on integrated warfare systems and sensors (IWSS) programs due to new program ramp up within the laser systems portfolio and higher volume on the Aegis and radar programs; $150 million for various C6ISR (command, control, communications, computers, cyber, combat systems, intelligence, surveillance, and reconnaissance) programs due to higher volume; and $100 million for Sikorsky helicopter programs due to higher volume on Seahawk and CH-53K programs.

RMS' operating profit in the first quarter of 2024 increased to $430 million, or 23%, compared to $350 million in the same period in 2023. The increase was primarily attributable to higher operating profit of $40 million on IWSS programs due to higher volume described above and a favorable profit rate adjustment as a result of the delivery of a ground-based radar which retired the technical risk; and $25 million on Sikorsky helicopter programs due to higher volume described above and higher margins due to contract mix, partially offset by unfavorable profit adjustments on Seahawk programs. Total net profit booking rate adjustments were $30 million lower in the first quarter of 2024 compared to the same period in 2023.

Space

Space's net sales in the first quarter of 2024 increased to $3.3 billion, or 10%, compared to $3.0 billion in the same period in 2023. The increase was primarily attributable to higher net sales of $140 million for strategic and missile defense programs due to higher volume on Fleet Ballistic Missile (FBM) and ramp up in the hypersonic and Next Generation Interceptor (NGI) development programs; and higher net sales of $115 million for national security space programs due to higher volume on Transport Layer and GPS III programs and ramp up on the Tracking Layer program.

Space's operating profit in the first quarter of 2024 increased to $325 million, or 16%, compared to $280 million in the same period in 2023. The increase was primarily attributable to $30 million of higher equity earnings from the company's investment in United Launch Alliance (ULA) due to higher launch volume, and higher operating profit of $20 million on strategic and missile defense programs due to the higher volume described above. These increases were partially offset by lower operating profit of $25 million for national security space programs due to the impact of lower net favorable profit adjustments on Next Gen OPIR as a result of the timing of the award and incentive fee assessments. Total net profit booking rate adjustments were $30 million lower in the first quarter of 2024 compared to the same period in 2023.

Total equity earnings/(losses) (primarily ULA) represented approximately $15 million or 5% in the first quarter of 2024, compared to approximately $(15) million or (5)% for the same period in 2023.

Source: Forecast International
Associated URL: https://www.lockheedmartin.com/