The term "Aerospace & Defense" is a generic term that encompasses several different industries: The major companies as seen on the right which 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. It consist of three divisions: commercial airplanes, Integrated Defense Systems (IDS), and Boeing Capital Corporation 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.
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:
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 (NYSE: HON) is an industrial conglomerate that makes airplane controls and engines, turbo chargers for car engines, industrial automation and controls systems and heating and air conditioning systems. 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.
The rising price of oil has affected many of Honeywell's clients in the transportation industry. Auto-makers such as Ford and GM have been forced to close some of their plants, lowering their demand for Honeywell's products. Meanwhile, struggles in the U.S. Housing Market related to the subprime lending crisis have hurt demand in the construction industry. Demand for new heating and air conditioning systems depends upon construction levels, leaving Honeywell exposed to the downturn.
Lockheed Martin is one of the world's largest defense contractor by revenue. 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. 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 (NYSE: GD) is one of the top defense contractors in the U.S. GD offers products and services to domestic and international governments and militaries. It is also the leading manufacturer of corporate jets, with its Gulfstream fleet accounting for one fourth of all business jet sales. The needs of the U.S. military have shifted greatly since the Cold War era, with an increased focus on a more responsive and versatile military. GD aims to fulfill those needs with its offerings such as Stryker combat vehicles, Virginia class submarines, DDG-1000 destroyers, and its information systems and technology solutions. The company earned $32 billion in revenue and $2.4 billion in net income in 2009.
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.
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 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.
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.
|Company||FY2010 Net Profit Margin||FY2010 Operating Margin||FY2010 EBITDA Margin||Return on Average Equity||Biggest Division|
|Boeing Company(BA)||5.15%||7.31%||10.53%||102.5%||Civilian Aircraft|
|Honeywell International(HON)||6.1%||9.4%||12.6%||23%||Electronic Systems on Aircraft|
|Lockheed Martin(LMT)||5.77%||8.94%||11.11%||67.50%||Electronic Systems|
|General Dynamics (GD)||8.09%||12.15%||13.90%||20.42%||Information Systems and Technology|
|Raytheon Company (RTN)||7.32%||10.35%||11.56%||18.43%||Space and Airborne Systems|
|Goodrich Corporation (GR)||8.39%||14.35%||17.36%||23%||Actuation and Landing Systems|
|Northrop Grumman (NOC)||5.86%||8.83%||10.85%||15.5%||Electronic Systems|