RECENT NEWS
Flightglobal  Dec 6  Comment 
Kiah Erlich, is director, flight support services, at Honeywell Aerospace where she is passionate about promoting aerospace to the next generation of aviators
New York Times  Dec 1  Comment 
Starboard Value has asked Rockwell Collins to consider selling itself instead of buying B/E Aerospace. The hedge fund faces an uphill climb.
Reuters  Nov 30  Comment 
* Rockwell Collins - remain confident that acquisition of B/E Aerospace will create "significant value" for shareholders
Reuters  Nov 30  Comment 
Activist investor Starboard Value LP has acquired a stake in aircraft component maker Rockwell Collins Inc and is questioning its $6.4 billion purchase of B/E Aerospace Inc, a...
Flightglobal  Nov 30  Comment 
The flight crew of the Bolivian British Aerospace Avro RJ85 that crashed in Colombia had declared a fuel emergency while waiting to land at Medellin airport in Rionegro, according to an air traffic control recording.
Insurance Journal  Nov 30  Comment 
Two companies that operated a now closed aerospace plant argue that groundwater pollutants threatening to contaminate the city of Bethany’s municipal water supply are a result of the city’s 67-year-old clay sewer pipes, not the shuttered...
Flightglobal  Nov 30  Comment 
Piper has delivered the first Archer TX to UND Aerospace, from an April 2016 order for 80 of the piston-singles and 20 Seminole piston-twins.
TechCrunch  Nov 29  Comment 
 A new venture fund called Starburst Ventures has raised a $200 million debut fund to invest in early stage aerospace startups over the next three years. The fund is an extension of the Starburst Accelerator, which was founded in 2012 to help...
Reuters  Nov 23  Comment 
Aerospace companies in the Canadian province of Quebec will likely benefit from in-service support contracts linked to a federal government purchase of 18 Boeing Co Super Hornets, an industry group said on Wednesday.
Flightglobal  Nov 23  Comment 
Zodiac Aerospace is aiming for stable sales in 2016-17 as it concentrates on completing a recovery programme scheduled to end next year.




 
TOP CONTRIBUTORS

The term "Aerospace & Defense" is a generic term that encompasses several different industries: The major companies as seen on the right manufactures both commercial and military aircrafts. Boeing Company (NYSE:BA) is the world's largest aerospace and defense company. The company operates in over 90 countries and claims the title of America's largest aerospace manufacturing company. Its has three divisions: commercial airplanes, Integrated Defense Systems (IDS), and Boeing Capital Corporation[1] Of the three divisions, the most prominent is the commercial airplane section. This division faces intense competition from EADS NV (EADSY) and its Airbus line of planes.

Error creating thumbnail

Companies Overview

The Aerospace & Defense industry portal delivers latest information to professionals working in government, businesses and private companies involved in research, development, production, and service to commercial and military equipments and facilities. Our content target the following audience such as:

  • Commercial clients and business owners around the world.
  • Defense contractors: business organizations or individuals that provide products or services to a defense department of a government.
  • The Arms industry, which produces guns, ammunition, missiles, military aircraft, and their associated consumables and systems.
  • Private military contractors: private companies that provide logistics, manpower, and other expenditures for a military force.
  • Defense procurement.

Boeing Company (BA)

Headquartered in Chicago, Illinois, Boeing was originally founded in the 1910s in Seattle, Washington. After a series of mergers and splits (in which today's United Airlines was spun out, among others), Boeing emerged in the fifties as the premier US aircraft manufacturer, participating heavily in government air defense projects. It was not until 1958 that Boeing began delivery of its first commercial airplanes, the segment for which it is most commonly recognized today.

Honeywell International (HON)

Honeywell's $31 billion revenue places it amongst the largest companies in the world. Sales in the US constitute 61% of revenue, but Honeywell's international business has been growing rapidly.

Lockheed Martin (LMT)

is one of the world's largest defense contractor by revenue.[2] As a manufacturer of primarily electronic, information, aeronautic, and space systems, LMT has benefited from the increased defense spending that has accompanied the Afghan and Iraq War.

United States government spending typically represents about 85% of Lockheed Martin's revenue.[3] As a result, the company is sensitive to political changes that impact federal government spending priorities. Historically, Republican political victories have benefited Lockheed Martin through increases in defense spending.

Aeronautics is engaged in the research, design, development, manufacture, integration, sustainment, support, and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies.

In 2010, net sales at Aeronautics of $13.2 billion represented 29% of our total net sales. Aeronautics has three principal lines of business, and the percentage that each contributed to its 2010 net sales was:

General Dynamics (GD)

The company earnings in 2009 was $32 billion in revenue and $2.4 billion in net income.
Error creating thumbnail

With three-quarters of GD's sales coming from the US government,[3] GD relies heavily on the U.S. Department of Defense (DoD) budget spending. The DoD budget is rather cyclical, but the war in the Middle East and the military's need to replace Cold War equipment has helped increase defense spending over the past few years. During 3rd Q of 2011, GD experience a fall in net income by 9.3% due to sluggish economic, reduction of equipments and energy costs with an impact on environmental atmosphere due to carbon emissions.

Raytheon Company (RTN)

The United States government is Raytheon's principal customer, accounting for nearly 80% of total sales. Such heavy reliance on one source for income is softened by the company's strong diversification in small contracts; the loss of one program would not significantly affect the company's business.

Goodrich Corporation (GR)

This segment manufactures and produces flight controls, helicopter's main and tail rotors, complete landing gear systems (including wheels and brakes), fuel controls, electrical systems, surveillance systems, and provide maintenance and repair services associated with aircraft engines and aircraft interior products.

Northrop Grumman (NOC)

Northrop Grumman Corporation (NYSE:NOC) is the world’s third largest defense contractor; it manufactures aircraft carriers, submarines, space craft systems, mission-critical computer systems, and wireless communications infrastructure; about 90% of its revenue comes from the U.S. Department of Defense (DoD). The company is currently based out of Los Angeles, CA, but is scheduled to move to Falls Church, VA.[4]

Business and Financial Metrics

  • Revenue: Boeing's revenue has decreased from $68.28 billion in 2009 to $64.31 billion in 2010. The revenue decrease is attributed to various factors such as a decline in airline demand and negative publicity associated with the multiple delays of the 787 Boeing Dreamliner.[5] For the first half of 2011, revenues increased 2% from $30.79 billion in 2010 to $31.45 billion.[6]
  • Net Income: Boeing's net income has increased from $1.31 billion in 2009 to $3.31 billion in 2010. Most of this more than 250% increase in net income comes from streamlining and efficiency procedures implemented by Boeing.[5] For the first half of 2011, net income increased 17% from $1.31 billion in 2010 to $1.53 billion.[6]

Data Trend and Forces

Boeing Corporation is set to continue rolling out most of it's Carolina dreamliner productions due to positive revenue of 135.6% from 2010 annual reading compared to most competitors. This will in turn generate profitable net income through 2013.

Data Metrics

The valuation of volatiled [7]indices ranges from trending supplemented variables which has continuously enforce bias to brokerage firms to relay on forcasting strong recovery during mid quarter of 2012.

Competition

For comparison purposes, here are the FY2010 revenues findings these aerospace corporations.

Company FY2010 Net Profit Margin FY2010 Operating Margin FY2010 EBITD Margin Return on Average Equity Biggest Division
Boeing Company(BA)[15] 5.15% 7.73% 9.36% 135.31% Civilian Aircraft
Honeywell International(HON)[16] 6.1% 9.4% 12.6% 23% Electronic Systems on Aircraft
Lockheed Martin(LMT)[17] 5.77% 8.94% 11.11% 67.50% Electronic Systems
General Dynamics (GD)[18] 8.09% 12.15% 13.90% 20.42% Information Systems and Technology
Raytheon Company (RTN)[19] 7.32% 10.35% 11.56% 18.43% Space and Airborne Systems
Goodrich Corporation (GR)[20] 8.39% 14.35% 17.36% 23% Actuation and Landing Systems
Northrop Grumman (NOC)[21] 5.86% 8.83% 10.85% 15.5% Electronic Systems



References

  1. Wikinvest SEC Files: BA 2009 10-K, Item 8
  2. LMT 10-K FY2010, Pg 2
  3. Lockheed Martin 2010 Form 10-K, Page 1
  4. NOC 10-k FY2010, Pg 2
  5. 5.0 5.1 Wikinvest SEC Files: Boeing 2010 10-K, Item 8, The Boeing Company and Subsidiaries Consolidated Statements of Operations
  6. 6.0 6.1 Boeing Company New Release - Second Quarter 2011 Earnings
  7. Company(RTN)/Data/Key_Metrics| Raytheon Key Metrics
  8. Google Finance, "The Boeing Company"
  9. Google Finance, "Honeywell International"
  10. Martin Google Finance, "Lockheed Martin"
  11. Dynamics Google Finance, "General Dynamics"
  12. Company Google Finance, "Raytheon Company"
  13. Corporation Google Finance, "Goodrich Corporation"
  14. Grumman Google Finance, "Northrop Grumman"
  15. [1]
  16. [2]
  17. [3]
  18. General Dynamics Financials
  19. Raytheon Financials
  20. [http://www.reuters.com/finance/stocks/ratios? rpc=66&symbol=RTN Raytheon Financials]
  21. Northrop Grumman Financials
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki