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MARINE FINANCE and leading positions in advanced defense electronics and shipbuild- ing. Although the decline in U.S. defense spending appears to have bottomed out, DCR does not expect a significant upturn before the end of this decade. "Litton management turned to acquisitions to grow revenues," said George J. Podrasky, a DCR group vice president and author of the report. Litton has made several small acquisitions of complementary product lines in recent years. Acquisitions are stabilizing Litton's revenue outlook, and the company is generating excess cash for debt reductions, acquisitions or share repurchases. "Still, DCR cannot rule out Litton Industries becoming an acquisition target itself as other defense con- tractors seek to add volume in a shrinking market," Mr. Podrasky said. Uinancing's not right if it's not right for you. Which is why we at The CIT Group/ Capital Equipment Financing customize financing packages to meet our clients' individual situations. We have funded companies in the intercoastal marine industry for over 30 years. So we understand the operational considerations of your business as well as the financial requirements. This dual background, combined with the flexibility of asset-based lending, allows us to create growth packages that work to your maximum advantage. Our clients use funds to refinance existing debt,- for new or used vessel acquisition, and generally to make investments toward ensuring profitability and competitiveness. To find out how The CIT Group can help your operation, call Burt Feinberg, Vice President at (212) 536-9338. AMERICA'S MOST EXPERIENCED ASSET-BASED LENDER ) 1996 The CIT Group, Inc. Circle 205 on Reader Service Card 12 EC Considers Sanctions For Substandard Ships The operation of substandard ships, particularly in the tramp market, must be made so expen- sive that it becomes unattractive, Roberto Salvarani, of the Directorate for Marine Transport at the European Commission (EC), told a recent meeting of the Economic Advisory Committee of Germanischer Lloyd (GL). In his speech to the GL commit- tee in Hamburg, Mr. Salvarani said that approximately 1,000 ships are detained every year in Europe by port state control offi- cials, and that 23 flag administra- tions — all IMO members — are on the black lists of these officials. He said that to improve this situation, the rigorous application of existing standards is needed, in lieu of the development of new, non-mandato- ry rules. Mr. Salvarani said that financial sanctions against sub- standard ships are being consid- ered by EC as an additional inducement for ships operators/owners to comply with safety practices. In conclusion, the EC official called on class societies to keep up the measures already initiated to improve the quality of surveys. Additionally, he suggest- ed that insurers exert pressure by setting high premiums or even refusing tonnage. Raytheon Wins Navy Contract The U.S. Navy's Space and Naval Warfare Systems Command (SPAWAR) has selected Raytheon Electronic Systems (RES) to pro- vide AN/WSC-6, Super High Frequency (SHF) satellite commu- nications antennas. The antennas are designed to provide secure command and control communica- tions over military or commercial satellites. The basic contract calls for an initial award of $1.1 million to provide four, 2.4-m shipboard SHF antennas. Options for 26 additional antennas and related engineering include the potential for an additional $7.3 million in funding. The AN/WSC-6 shipboard anten- nas will provide military users with high capacity communication links to support voice and data communications in either X or C bands. The antennas will interface with both military and commercial Maritime Reporter/Engineering News
