MBDA eyes Spanish expansion
MBDA has said that transitioning into Spain is an ‘important objective’ for the European company as it celebrated a 7% profit increase in 2010.
Speaking at a press conference on 16 March, the missile company’s CEO, Antoine Bouvier, said Spain is ‘to become step-by-step a domestic country for MBDA’.
The Anglo-French company already has industrial facilities in France, Germany, Italy and the UK, and an office was established in Madrid in 2010.
Despite ‘huge pressure’ on the defence budget, the Spanish Government still decided to sign MBDA’s Meteor Operation contract in 2010, to the delight of Bouvier.
While stating that each country has its own regulatory environment and that each defence budget is ‘under pressure’, Bouvier described missile defence as an ‘important subject’ on the military agenda.
Julian Whitehead, chief financial officer of MBDA, said that in 2010 the company achieved a turnover of €2.8 billion, which represented an overall increase in its profits of 8%, which adjusted to an underlined 7% compared to 2009 once exchange rates were considered.
This was ‘driven to a large extent by increased delivery on exports’, which rose from 29% to 32%, according to Whitehead.
The company delivered more than 10% return on sales, which signifies the ninth year in which its sales have increased.
However, the ‘frustration’ with the results was that export orders dropped from some 50% in 2009 to 31% in 2010. Whitehead said this was due to a number of opportunities having arisen in 2010, which continue, but had yet to be secured.
The company hopes that 2011 will redress the balance, and argued that the ‘financials remain strong’.
MBDA is also looking outside of Europe to Brazil, India, and UAE. Bouvier acknowledged that it will take some time, but said it aims to step-by-step grow its presence in the US.
He added that MBDA is ‘expecting from 2011 some more tangible results in our US strategy’.
Whitehead commented that the US Department of Defense is a customer of MBDA, but at present not a major one.
The company marks its tenth anniversary at the end of 2011, and Bouvier said it wants to celebrate it with ‘flying colours’ with a growth of 40-50%.
More from Defence Notes
-
US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
-
US FY2024 funding package passes as China closes military capability gap
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
-
NATO outlines future challenges as Ukrainian funding from US stalls
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
-
US Pentagon to reduce investments in main acquisition programmes over FY2025
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.
-
Haiti crisis forces Caribbean militaries to prepare for intervention
As gangs gain control of Port-au-Prince, Haiti’s Caribbean neighbours have been preparing to intervene in the failed state, with the US and other partners waiting in the wings with equipment and financial support.