Aerospace & Defense

Revision as of 08:20, November 16, 2012 (edit) Vale011 - Director (Talk | contribs) (→Lockheed Martin (LMT)) ← Previous diff		Current revision (17:54, December 14, 2012) (edit) (undo) Wikinvest MaintenanceBot - Sr. Director (Talk | contribs) (Reverting)
(10 intermediate revisions not shown.)
Line 1:		Line 1:
-	The "Aerospace & Defense" industry encompasses of several different commercial and defense companies. These companies may occassionally gain contracts from the government. Here are some of companies as seen on the right which manufacture both commercial and military aircrafts.	+	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 Euronext (NYX)|NYSE:]][[BA]]) is one the world's largest aerospace and [[Defense spending|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<ref name = item8>[http://www.wikinvest.com/stock/Boeing_Company_(BA)/Index%20Consolidated%20Financial%20Statements Wikinvest SEC Files: BA 2009 10-K, Item 8]</ref> 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.	+	'''Boeing Company''' ([[NYSE Euronext (NYX)|NYSE:]][[BA]]) is the world's largest aerospace and [[Defense spending|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<ref name = item8>[http://www.wikinvest.com/stock/Boeing_Company_(BA)/Index%20Consolidated%20Financial%20Statements Wikinvest SEC Files: BA 2009 10-K, Item 8]</ref> 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.
	[[image:Boeing-777.jpg|thumb|200px|right|]]		[[image:Boeing-777.jpg|thumb|200px|right|]]
Line 10:		Line 10:
	*Private military contractors: private companies that provide logistics, manpower, and other expenditures for a military force.		*Private military contractors: private companies that provide logistics, manpower, and other expenditures for a military force.
	*Defense procurement.		*Defense procurement.
-	===[[Boeing Company (BA)]] ===	+	===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.		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 International (HON)]]===
-	Honeywell International is a conglomerate (complex) corporation 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<ref name=09mainfinancial/> 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.	+	'''Honeywell International ([[NYSE Euronext (NYX)|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<ref name=09mainfinancial/> 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.		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.
Line 22:		Line 22:
	United States government spending typically represents about 85% of Lockheed Martin's revenue.<ref>[http://www.sec.gov/Archives/edgar/data/vale011/d10k.htm Lockheed Martin 2010 Form 10-K, Page 1]</ref> As a result, the company is sensitive to political changes that impact federal government spending priorities. Historically, [[Republican victory | Republican political victories]] have benefited Lockheed Martin through increases in defense spending.		United States government spending typically represents about 85% of Lockheed Martin's revenue.<ref>[http://www.sec.gov/Archives/edgar/data/vale011/d10k.htm Lockheed Martin 2010 Form 10-K, Page 1]</ref> As a result, the company is sensitive to political changes that impact federal government spending priorities. Historically, [[Republican victory | Republican political victories]] have benefited Lockheed Martin through increases in defense spending.
-	[[image:F35_Fighter_Aircraft.jpg|thumb|200px|right|F-35 Fighter Aircraft]]
-	Its manufacturing department is engage in research, design, development, manufacture, integration, sustainment, support, and upgrade of advanced military aircrafts, including combat and air mobility aircrafts, unmanned air vehicles, and related technologies.	+	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:		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:
-	<ref, name=d10K_2010>[url:Form 10-K for the fiscal year ended December 31, 2010]</ref>
	===[[General Dynamics (GD)]]===		===[[General Dynamics (GD)]]===
-	'''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 Striker combat vehicles, Virginia class submarines, DDG-1000 destroyers, and its information systems and technology solutions.<ref name=09general>[http://www.wikinvest.com/stock/General_Dynamics_(GD)/Filing/10-K/2010/F47089257 GD 2009 10-K "Business Overview" pg. 3]</ref> The company earned $32 billion in revenue and $2.4 billion in net income in 2009.<ref name=09mainfinancial/>	+	'''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.<ref name=09general>[http://www.wikinvest.com/stock/General_Dynamics_(GD)/Filing/10-K/2010/F47089257 GD 2009 10-K "Business Overview" pg. 3]</ref> The company earned $32 billion in revenue and $2.4 billion in net income in 2009.<ref name=09mainfinancial/>
		+
		+
	===[[Raytheon Company (RTN)]]===		===[[Raytheon Company (RTN)]]===
Line 39:		Line 39:
	===[[Northrop Grumman (NOC)]]===		===[[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.<ref>[http://www.sec.gov/Archives/edgar/data/d10K.htm NOC 10-k FY2010, Pg 2 ]</ref>		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.<ref>[http://www.sec.gov/Archives/edgar/data/d10K.htm NOC 10-k FY2010, Pg 2 ]</ref>
-
-	===Shoghi Communications Ltd===
-	Around the world the Military, Defence forces and Intelligence agencies of more than seventy countries reach out for Shoghi when it comes to integrated strategic electronic defense technologies, products and systems.
	==Business and Financial Metrics==		==Business and Financial Metrics==
Line 52:		Line 49:
	===Data Trend and Forces===		===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.		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.
		+
		+
	==Key Metrics - Analytical Data Trend as of 2010==		==Key Metrics - Analytical Data Trend as of 2010==

---

Current revision

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^[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.

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 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^[2] 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 (LMT)

Lockheed Martin is one of the world's largest defense contractor by revenue.^[3] 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.^[4] 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)

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.^[5] The company earned $32 billion in revenue and $2.4 billion in net income in 2009.^[2]

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.^[6]

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.^[7] For the first half of 2011, revenues increased 2% from $30.79 billion in 2010 to $31.45 billion.^[8]

• 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.^[7] For the first half of 2011, net income increased 17% from $1.31 billion in 2010 to $1.53 billion.^[8]

• Space, e.g. Orbital Sciences (ORB), GeoEye (GEOY)

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.

Key Metrics - Analytical Data Trend as of 2010

Revenue Data for FY2010

• Boeing Company (BA): 2010 revenue - $64.3 billion^[9].
• Honeywell International (HON): 2010 revenue - $37.8 billion^[10].
• Lockheed Martin (LMT): 2010 revenue - $45.8 billion^[11].
• General Dynamics (GD): 2010 revenue - $32.5 billion^[12].
• Raytheon Company (RTN): 2010 revenue - $25.2 billion^[13].
• Goodrich Corporation (GR): 2010 revenue - $9.3 billion^[14].
• Northrop Grumman (NOC): 2010 revenue - $31.4 billion^[15].

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

Revenue Data for FY2011

• Boeing Company (BA): 2011 revenue - $68.74 billions^[16].
• Honeywell International (HON): 2011 revenue - $36.77 billions^[17].
• Lockheed Martin (LMT): 2011 revenue - $46.51 billions^[18].
• General Dynamics (GD): 2011 revenue - $32.68 billions^[19].
• Raytheon Company (RTN): 2011 revenue - $24.86 billions^[20].
• Goodrich Corporation (GR): 2011 revenue - $8.07 billions^[21].
• Northrop Grumman (NOC): 2011 revenue - $26.41 billions^[22].
• Rockwell Collins (COL): 2011 revenue - $6.67 billions^[23].

References

1. ↑ Wikinvest SEC Files: BA 2009 10-K, Item 8
2. ↑ ^{2.0 2.1}
3. ↑ LMT 10-K FY2010, Pg 2
4. ↑ Lockheed Martin 2010 Form 10-K, Page 1
5. ↑ GD 2009 10-K "Business Overview" pg. 3
6. ↑ NOC 10-k FY2010, Pg 2
7. ↑ ^{7.0 7.1} Wikinvest SEC Files: Boeing 2010 10-K, Item 8, The Boeing Company and Subsidiaries Consolidated Statements of Operations
8. ↑ ^{8.0 8.1} Boeing Company New Release - Second Quarter 2011 Earnings
9. ↑ Google Finance, "The Boeing Company"
10. ↑ Google Finance, "Honeywell International"
11. ↑ Martin Google Finance, "Lockheed Martin"
12. ↑ Dynamics Google Finance, "General Dynamics"
13. ↑ Company Google Finance, "Raytheon Company"
14. ↑ Corporation Google Finance, "Goodrich Corporation"
15. ↑ Grumman Google Finance, "Northrop Grumman"
16. ↑ Google Finance, "The Boeing Company"
17. ↑ Google Finance, "Honeywell International"
18. ↑ Martin Google Finance, "Lockheed Martin"
19. ↑ Dynamics Google Finance, "General Dynamics"
20. ↑ Company Google Finance, "Raytheon Company"
21. ↑ Corporation Google Finance, "Goodrich Corporation"
22. ↑ Grumman Google Finance, "Northrop Grumman"
23. ↑ Collins Google Finance, "Rockwell Collins"

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.