Defence & Security Industry News - Barco
|Monday, September 29, 2014 09:43 AM|
|Barco on the verge of selling its aerospace and defense division|
Belgian visual technology company Barco NV is on the verge of selling its aerospace and defense business to a U.S. industrial firm, local business daily De Tijd said on Monday, September 29. Barco, which makes digital cinema projectors and a variety of high-end screens, has said for at least a year that the business was not core and that it could be sold for the right price.
Barco was selected this year by Kongsberg Defence and Aerospace to deliver RFD-251 Rugged Flat Displays for the NASAMS and HAWK air defense programs
De Tijd, citing sources, said a deal was set to be announced in the coming days and that the buyer was a U.S. industrial player.
Barco declined to comment.
The company's defense and aerospace division posted a 10.5 percent fall in sales last year to 149.7 million euros ($189.6 million) and a core profit margin of 13.5 percent, below the company's target of 15 percent.
The company's unit is a relatively small player in the overall market, which is dominated by U.S. companies often better placed to secure military contracts.
Furthermore, margins have been under pressure with higher spending needed on technology, but government budget cuts are pressuring prices.