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BAE Systems Inc.



BAE Systems Inc. (formerly BAE Systems North America) is a major subsidiary of the UK-based defence and aerospace company BAE Systems plc. It operates as a semi-autonomous business unit within BAE Systems controlled at a local level by American management.

BAE Systems' 2003 Annual Report states that then BAE Systems North America had an order book of £2.4 billion, sales of £2.7 billion and a profit of £230 million. In context; group figures were £46 billion, £12.6 billion £980 million respectively.

History

The company was created on November 30 1999. On this date Marconi Electronic Systems (MES) and British Aerospace (BAe) merged to form BAE Systems. Their respective subsidiaries in the USA, Marconi North America and British Aerospace North America, were similarly merged to form BAE Systems North America.

In the company's 2003 Annual Report the Chairman sums up BAE Systems' strategy since the merger:"In recent years BAE Systems has undergone a radical transformation from a UK-based aircraft manufacturer to a broadly-based systems business. Through this transformation the company has achieved a more balanced portfolio and geographic spread."

While BAE Systems already had significant interests in North America as a result of the aforementioned merger, in the period described above almost all of the company's growth had been concentrated in the US. BAE Systems North America has grown to the point where its sales to the (American) Department of Defense have surpassed those of its parent to the (British) Ministry of Defence. BAE Systems is now by far the largest foreign investor in the US defence industry.

With the political and military ties that exist between the US and the UK, BAE Systems has faced little opposition to acquisitions of important US defence contractors. The biggest test to date was the purchase of United Defense Industries (UDI) which has received regulatory approval.

BAE Systems North America was renamed BAE Systems Inc. in 2005 following a major reorganisation of BAE Systems plc as a result of the Eurosystems (Selex) and UDI transactions.

Acquisitions

Businesses purchased by the Marconi North America before the merger and BAE Systems following the merger include:
* 1998 - Tracor
* 2000 - Lockheed Martin Control Systems
* 2000 - Lockheed Martin Aerospace Electronic Systems
* 2003 - Advanced Power Technologies, Inc (APTI) (now part of BAE Systems Electronics & Integrated Solutions (E&IS) unit)
* 2003 - MEVATEC (now BAE Systems Analytical & Ordnance Solutions)
* 2004 - STI Government Systems (now part of Communications, Navigation, Identification and Reconnaissance division of BAE E&IS unit)
* 2004 - Boeing Commercial Electronics (now part of the Platform Solutions unit of BAE Systems E&IS)
* 2004 - DigitalNet Holdings Inc (now BAE Systems Information Technology)
* 2004 - ALPHATECH (now BAE Systems Advanced Information Technologies)
* 2005 - United Defense Industries (now BAE Land and Armaments)

Corporate governance

Current members of the board of directors of BAE Systems North America are: Sheila Cheston, Robert S. Cooper, Robert Fitch, Lee Hamilton, Walt Havenstein, Richard Kerr, Kenneth Minihan, Mark Ronald, Michael Rouse, William Schneider, Michael Turner, and Anthony Zinni.

Product range

*Data links/communications
*Combat identification (IFF)
*Electronic warfare and missile countermeasures
*Reconnaissance and surveillance systems
*Avionics
*Flight controls and engine controls
*Munitions
*IT

Organisation

*BAE Systems Customer Solutions
**BAE Systems Information Technology
**BAE Systems Ship Repair
**BAE Systems Technology Solutions and Services
***BAE Systems Analytical & Ordnance Solutions
*BAE Systems Land and Armaments
**BAE Systems Armament Systems Division
**BAE Systems Ground Systems Division
**BAE Systems Steel Products Division
**BAE Systems Bofors
**BAE Systems Land Systems
***BAE Systems Land Systems Weapons & Vehicles
***BAE Systems Land Systems Hagglunds
***BAE Systems Land Systems South Africa
***Land Systems Munitions & Ordnance
*BAE Systems Electronics and Integrated Solutions
**Communications, Navigation, Identification and Reconnaissance
**Electronic Protection
**Information Warfare
**National Security Solutions
**Platform Solutions
**Sensor Systems

References

*www.na.baesystems.com



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