Raytheon [RTN] on April 27 reported strong earnings in the first quarter due to gains in each of its key operating segments and the company also posted a modest increase in sales.

Net income increased 18 percent to $506 million, $1.74 earnings per share (EPS), versus $428 million ($1.43 EPS) a year previously. Excluding discontinued operations, per share earnings were $1.73, 12 cents better than consensus estimates. Total operating margins were 12.4 percent, 1.8 percent higher than a year earlier.

Sales increased 3 percent to $6 billion from $5.8 billion a year earlier.

Raytheon attributed most of the income gains to operational improvements, with a lower share count, accounting adjustments and other factors making up the remainder of the increase. At the operating level, the Integrated Defense Systems (IDS), Space and Airborne Systems (SAS), and Missile Systems all posted double-digit increases in segment profit while the Intelligence, Information and Services (IIS) segment posted a strong single-digit rise.

The SAS, IDS and Missile Systems segments drove the top line growth on sales of an electronic warfare system, and an international early warning radar program.

Thomas Kennedy, Raytheon’s chairman and CEO, said on the company’s earnings call that sales to international customers increased nearly 8 percent in the quarter and accounted for 32 percent of total sales. He also said the company’s classified business with domestic customers rose more than 6 percent in the quarter, driven by record classified bookings in 2016.

Kennedy also highlighted a threat environment that is driving a “significant increase in demand signals from every one of our major global markets,” including strike, integrated air and missile defense, and long-range sensing capabilities.

There is a pipeline for a number of large international opportunities, Kennedy said, including a Patriot air and missile system deal for Poland that is being worked with the U.S. government that is worth up to $5 billion for Raytheon. He expects Poland to sign an agreement with the U.S. government later in 2017 for the Patriot, which would make it the 14th country to acquire the system.

Kennedy also said there are additional opportunities for Patriot in Europe. He added that Australia has selected the company as the sole bidder for a ground-based air defense system that represents a potential $1 billion opportunity. An award is expected around 2019, he said.

Customers in the Middle East and North Africa are also interested in long-range sensors, Kennedy said, in particular early warning radars and the company’s TPY-2 X-Band counter ballistic missile radar in the 2018 and 2019 period. During the first quarter Raytheon booked a $987 million order from Qatar for the Upgraded Early Warning Radar system.

He also outlined a robust outlook for Raytheon’s business supporting the surface and subsurface components of the U.S. Navy, which accounts for 18 percent of the company’s sales.   These “domains” are “key areas” for future growth, Kennedy said.

Based on its strong opening quarter, Raytheon raised its sales and earnings guidance for the year. Sales are now expected to be between $24.9 billion and $25.4 billion, up $100 million from the prior outlook due to higher expectations in the Missile Systems segment. The company raised its earnings guidance by a nickel to between $7.25 and $7.40 EPS, driven by a lower tax rate, higher sales, and lower interest expense, partially offset by a forthcoming charge related to the early retirement of debt.

Orders in the quarter were $5.7 billion and the company raised its outlook for bookings in 2017 by $500 million to between $25.5 billion to $26.5 billion. International awards made up 33 percent of the bookings in the quarter, a 14 percent increase from a year earlier, Anthony “Toby” O’Brien, Raytheon’s chief financial officer, said on the earnings call.

Backlog at the end of the quarter stood at $36.1 billion versus $34.2 billion a year earlier, with 41 percent booked with international customers, O’Brien said. He said that $24.6 billion of the backlog is funded.

Operating cash was an outflow of $41 million in the quarter reflecting timing of collections.

Senior NATO officials briefed North American and European industry representatives on April 24 on the first bid invitations set to be launched in September as part of part of the alliance’s nearly $3.3 billion tech refresh, NATO said April 25.

The briefing occurred on April 24 at the NATO Communications and Information (NCI) Agency’s major conference, the NCI Agency Industry Conference and AFCEA TechNet International (NITEC17). The conference was held in Ottawa, Canada the week of April 24. The agency first announced the general tech refresh contracts in March (Defense Daily, March 27).

The first round of contracts set to be finished in September and October later in 2017 include:

• $ 2.2 million in command and control software for land operations;
• $8.7 million for the NATO Joint Targeting System;
• $32.7 million in logistics for multinational operations;
• Over $29 million for Service Management and Control;
• $349 million in air command and control;
• Over 76 million for new NATO messaging service, information services; and
• $1.6 billion in satellite communication services.

The NCI Agency highlighted these opportunities will be followed by another round in 2018 which will include a refresh for NATO’s cyber shield, and investments in education and training. It will also include more investments in air command and control; ballistic missile defense; intelligence, surveillance, and reconnaissance; business applications; and advanced software to support NATO’s operations.

“The aim of the conference was to give industry an opportunity to prepare for these competitions, including teaming up with partners from both Europe and North America,” NCI general manager Koen Gijsbers, said in a statement.

FireEye [FEYE] found two cyber groups linked to China’s military and intelligence agencies have recently launched attacks on South Korea’s government after South Korea said it would deploy the THAAD missile defense system, according to a report in the Wall Street Journal April 21.

FireEye’s director of cyberespionage analysis, John Hultquist, told the publication that normal Chinese hacking of South Korean targets increased in number and intensity in recent weeks after the South Korean government said it would deploy the Terminal High Altitude Area Defense (THAAD). The U.S. military is in the process of fielding a THAAD battery with South Korea in response to North Korea’s missile and nuclear weapons developments.

The attacks are reportedly aimed at South Korea’s government, military, defense companies, and a large conglomerate but FireEye would not name the specific targets. South Korean agencies are clients of the company.

One of the two groups, called Tonto Team by FireEye, is connected to China’s military and operates out of Shenyang in the country’s northeast. Shenyang has several North Korean businesses and reportedly is a center for that country’s hackers. The company believes the other hacker group, called APT (Advanced Persistent Threat) 10 may be linked to other Chinese intelligence or military units, according to the report.

Hultquist said the hackers gained access to target systems using web-based intrusions and by tempting personnel to click on malicious email attachments or compromised websites, a tactic known as phishing. He also said that an error in one of the hacker group’s operational security provided FireEye analysts with new information about their origins.

In March South Korea’s Ministry of Foreign Affairs said in a press briefing it was the target of several distributed denial-of-service (DDOS) cyber attacks following the deployment of THAAD, according to South Korea’s state-funded Yonhap News Agency.

“Several on-and-off DDoS attack attempts originating from China have taken place on websites including that of the Ministry of Foreign Affairs,” spokesman Cho June-hyuck said March 28. He noted the government took defensive action and no sustained damage took place.

“Our government pays attention to the Chinese government’s expression of its consistent stance that it opposes any kind of cyberattack, The government is expecting that [China] will continuously take responsible steps in accordance with the stance,” the spokesman added.

The report also said Russia’s Kaspersky Lab observed a wave of attacks on South Korean targets starting in February using malicious software that seems to have been developed by Chinese speakers.

The two hacking groups were reportedly joined by independent pro-Chinese hackers, known as hacktivists, using names like the Panda Intelligence Bureau and Denounce Lotte Group. South Korea’s Lotte Group has been a target for Chinese ire after it approved a land swap letting the THAAD battery to be deployed on a company golf course.

Earlier in April FireEye published a blog post about APT 10’s recent activities which itself came after a joint blog post by Britain’s BAE Systems and PricewaterhouseCoopers (PwC) on the same topic. FireEye highlighted that APT 10 is a threat to international organizations and that “their abuse of access to service provider networks demonstrates that peripheral organizations continue to be of interest to a malicious actor – especially those seeking alternative angles of attack.”

FireEye said APT 10 operations may slow down following the BAE/PwC blog but that it still believes “they will return to their large-scale operations, potentially employing new tactics, techniques and procedures.”

The Australian and Chinese governments agreed to enhance cyber security cooperation following discussions between leaders of the countries on April 21, the Australian Prime Minister’s office said April 24.

Prime Minister Malcolm Turnbull first raised cyber-enabled intellectual property theft issues with Chinese Premier Li Keqiang when the latter visited Sydney in March. The new agreement came after Turnbull and Foreign Minister Julie Bishop met with Meng Jianzhu, Secretary of the Chinese Communist Party’s Central Commission for Political and Legal Affairs, on April 21.

The two countries agreed they would not conduct or support cyber-enabled theft of intellectual property, trade secrets, or confidential business information with the intent of obtaining competitive advantage. The agreement is similar to a series of agreements the U.S. made with several countries in the past few years, particularly with China in 2015.

Australia and China also agreed to act in accordance with reports from the United Nations Group of Governmental Experts on cyber, including norms of responsible state behavior in cyberspace.

The countries agreed to establish a bilateral mechanism to discuss cyber security and crime issues with the aim of preventing cyber incidents that could create problems between them.

Meng Jianzhu was in the country for the first meeting of the High-Level Security Dialogue held on April 21 in Sydney. The continuing dialogue was earlier agreed upon by Turnbull and Li.

The State Department has approved a possible $195 million Foreign Military Sales request to Canada sustainment support for C-17 aircraft.

The Defense Security Cooperation Agency (DSCA) notified Congress of the potential sale on April 19.

The request includes the possible sale of follow-on support for its five CC177 aircraft (Canada’s designator for the C-17), including contractor logistics support provided through the Globemaster III Integrated Sustainment Program, in-country field services support, aircraft maintenance and technical support, support equipment, and alternate mission equipment.

It also includes software support, spares, personnel training and training equipment, U.S. government and contractor engineering and logistics support services, publications and technical documentation, and major modification and retrofit kits support.

The primary contractors include Boeing [BA] and its training systems business unit as well as Lockheed Martin [LMT].

The agency said that sources of supply will award contracts when necessary to provide defense articles ordered if the items ordered are not available from U.S. stock or are considered lead-time away.

Canada will use this support to ensure its continued capability to rapidly deploy its forces as well as continued interoperability with between U.S. and Canadian C-17s.

DSCA highlighted this sale “is required to maintain the operational readiness of the Royal Canadian Air Force C-17 aircraft” and that Canada’s current contract supporting its five C-17s will expire on Sept. 20.

Implementation of the sale will not require the additional assignment of any U.S. government or contractor representatives to Canada because there is an on-going FMS case providing C-17 sustainment services with 13 contractors from Boeing in-country to provide technical support services on a continuing basis.

The NATO Communications and Information (NCI) Agency signed an Industry Partnership Agreement (IPA) on cyber information sharing with Dell subsidiary RSA Security on the margins of the NITEC17 conference, the agency said April 25.

RSA is the 12th industry partner and third in 2017 to join the series of agreements between NATO and industry partners that aims to improve their abilities to detect, prevent, and respond to cyber threats quickly. NATO leaders previously stressed the importance of information sharing and industry partnerships to address cyber security issues using the NATO Industry Cyber Partnership (NICP). The alliance heads of state and government previously endorsed the NICP in 2014 as a collaboration tool.

The agency noted that in practice this latest IPA will help facilitate quick and early bilateral exchanges of non-classified technical information related to cyber threats and vulnerabilities. The shared information will be integrated into the agency’s 24/7 detection and prevention processes to enhance the alliance’s cyber security posture, NATO said.

“The trust we have built through this programme has proved essential during incident response, resulting in faster communications and sharing of more contextual information that bolsters our collective cyberdefences. We are very pleased to welcome RSA as an information sharing partner in our fight against cyber threats,” Koen Gijsbers, general manager of the NCI Agency, said in a statement.

“RSA is thrilled to be joining forces with NATO; we believe greater levels of collaboration between private and public sectors to fight common adversaries is an absolute necessity,” added Mike Adler, vice president of RSA for the NetWitness  product suite.

French Defence Minister Jean-Yves Le Drian officially launched the construction of five Belharra-class intermediate frigates (FTI), the Ministry said April 21.

The frigate contract was originally awarded to the French industrial group DCNS by the government’s Directorate General of Armaments (DGA). The Defence Ministry said these frigates will allow the French Navy to operate 15 first-line frigates by 2030, in accordance with the military multiyear planning law, the Defence Ministry said.

The Belharra is intended primarily for anti-submarine warfare but will also feature self-defense and special forces projection capabilities, DCNS said. It is expected to be in the mid-tonnage segment of French Navy ships, displacing 4,000 tonnes.

The company has joint project management over the Belharra with Thales for the development of the ship’s Sea Fire next-generation radar. The frigates will also be equipped with MBDA’s Aster 30 missiles.

Besides the Belharra frigates, the future force includes eight multi-mission frigates and two Horizon air-defense frigates. The Belharra-class was first unveiled at the 2016 Euronaval show in Paris and forms that basis of the navy’s future FTI intermediate frigates.

The ministry said the ship will be modular, which allows it to be configured for various mission types depending on poartner needs.

The Defense Ministry highlighted this frigate program will allow DCNS to develop its technical and industrial capabilities in the heavily armed surface combatant field, specifically at is Lorient, France site.

“DCNS is proud to contribute, alongside Thales, to the renewal of the French naval forces thanks to a new vessel responding to the needs of a world-class navy. It is key component of our range of military vessels and the attribution of this contract also allows us to develop a frigate that addresses the expectations of a dynamic international market,” Hervé Guillou, chairman and CEO of DCNS, said in a statement.

The first frigate is expected to be delivered in 2023 and enter into service in 2025.

President Donald Trump on April 27 called on his commerce secretary to determine the effects of aluminum imports on national security.

In a presidential memorandum, the White House said core industries such as steel, aluminum, vehicles, aircraft, shipbuilding and semiconductors are critical elements of the United States’ manufacturing and defense industrial bases, which the White House said the U.S. must defend against unfair trade practices and other abuses.

The secretary shall consider the domestic production of aluminum needed for projected national defense requirements; the capacity of domestic industries to meet such requirements; the existing and anticipated availability of the human resources, products, raw materials and other supplies and services essential to the national defense.

The secretary shall also consider the requirements of growth of such industries and such supplies and services; including the investment, exploration and development necessary to assure such growth; and the importation of goods in terms of their quantities, availability, character, and use as those affect such industries and the capacity of the U.S. to meet national security requirements.

If the secretary finds that aluminum is being imported into the U.S. in such quantities or under such circumstances as to threaten to impair the national security, the secretary shall, in the report, recommend actions and steps that should be taken to adjust aluminum imports so that they will not threaten to impair the national security.

White House Press Secretary Sean Spicer on April 27 during a press briefing claimed the U.S. aluminum industry is in trouble and that it declined to the lowest levels of aluminum that the nation has produced since 1952.

CrowdStrike announced April 25 it is launching an operation in Latin America to expand regional sales, marketing, and partner and business development support.

This expansion includes a new office in Mexico City that the company said will accelerate its go-to-market strategy in the region and expand opportunities for new business development and partnerships.

CrowdStrike highlighted as part of these moves it appointed Carlos Gonzalez as managing director for Latin America. Previously Gonzalez served in several leadership positions in McAfee’s Mexico and Latin America sales organizations.

“Having brick-and-mortar presence in the region will allow us to capitalize on a massive market opportunity. Our technology enables public and private sector enterprises to replace their legacy antivirus with modern, cloud-based, and effective endpoint protection that can defend against both malware and malware-free attacks,” George Kurtz, CrowdStrike co-founder and CEO, said in a statement.