🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Northrop upbeat on E-2D early-warning sales despite UAE loss

Published 11/13/2015, 10:57 AM
Updated 11/13/2015, 11:00 AM
© Reuters. The corporate logo of  Northrop Grumman is shown on a Fire Scout MQ-8 B unmanned helicopter in California
BA
-
NOC
-
SAABBs
-

By Andrea Shalal

DUBAI (Reuters) - Northrop Grumman Corp (N:NOC) sees possible sales of dozens of its E-2D Advanced Hawkeye airborne early warning aircraft to countries in the Gulf, Asia and North Africa in coming years, despite the loss of an order from the UAE to Sweden's SAAB AB (ST:SAABb) this week, senior company officials said.

Jerry Spruill, sector director with Northrop's international mission solutions business, told Reuters at the Dubai Airshow that his company remained in discussions with a number of other countries, but declined to name them specifically.

"We see future opportunities with our existing customers as well as new customers," Spruill said, noting that France, Japan, Taiwan and Egypt operate the older model E-2C aircraft.

"We're in the early days of E2-D opportunities," he said.

Saab (ST:SAABb) this week beat out Northrop and Boeing Co (N:BA) to win a $1.27 billion order for early warning planes from the United Arab Emirates (UAE).

Spruill said Northrop did not view the contract loss as a setback since it had other strong business prospects in the Gulf region and around the world. "We feel that the international potential for the E-2D is very bright," he said.

Japan has already announced plans to buy four of the aircraft, including one put under contract by the U.S. government last week for $151 million, and could ultimately double that order, Northrop officials said.

Doug Raaberg, Northrop's chief executive for UAE, said the E-2D was a key asset for maritime- and land-based military operations, and could help countries fill gaps in their ability to operate jointly with U.S. and other allied forces.

Northrop has delivered 20 of the 75 planes it is due to build for the U.S. Navy. With current orders, the production line is slated to run through 2024, but additional foreign orders would help extend that line.

© Reuters. The corporate logo of  Northrop Grumman is shown on a Fire Scout MQ-8 B unmanned helicopter in California

Northrop officials last month said it had also offered the E-2D aircraft to India to meet its early warning needs. The E-2D can be used on aircraft carriers, which could be an important consideration given India's plans to build a carrier.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.