TOP 100 Special REPORT Year of Living Dangerously

TOP 100 special REPORT Year of living dangerously

30 | Flight International | 14-20 September 2010 flightglobal.com TOP 100 special REPORT

Boeing has bounced back to the summit of our Top 100 ranking of aerospace manufacturers after a year of boosted fortunes for its commercial aircraft division, but the wider experience for the industry was one of dramatically reduced profitability and minimal sales growth

NIALL O’KEEFFE loNDon schedule will cause the airframer to incur penalty charges. The last programme delay ast year Boeing leapfrogged EADS to caused the first delivery of the Dreamliner to regain the title of world’s largest aero- launch customer All Nippon Airways to slip space manufacturer, as rising sales of from the last quarter of this year to the middle its commercial and military aircraft of 2011’s first quarter. coincidedL with declines in both areas for its In 2009 Airbus delivered a record 483 com- European rival. mercial aircraft, 15 more than in 2008. The In dollar terms, the overall picture for the two major airframers’ combined delivery total Top 100 manufacturers was one of stable rev- similarly scaled new heights, exceeding by enues but sharply declining profits, as the fall- 7% the previous record of 914 shipments, set out from global economic and financial chaos in 1999. filtered through. Boeing’s defence, space and security divi- That is according to the latest Flight Inter- sion meanwhile pulled in some $10 billion national Top 100 survey, compiled in associa- more than EADS’s equivalent businesses tion with PricewaterhouseCoopers and which could muster while coping with delays to the is based on company returns for the previous Airbus A400M military transport and the at- financial year. tendant contractual wrangle. The 17.3% drop in collective profits com- pares with growth of 7.8% in 2008 and 26% Boeing delivered 481 aircraft in 2007. Where sales edged up only 0.6% last last year, a big rise on 2008’s year, they had grown by 7.1% in 2008 and by 13% in 2007. strike-hit figure of 375

SALES BY SECTOR The rivals’ fortunes in commercial aircraft There were tough times for regional jet manufacture were a major factor in Boeing’s manufacturers. Bombardier Aerospace’s rev- eclipse of EADS. In 2008, Boeing’s haul from enues shrank 6.1%, while Embraer’s were this sector was $10.5 billion less than that of down a whopping 20.5%. The performance of its EADS-owned rival Airbus, but 2009 business jet manufacturers contrasted sharply brought a narrowing of the gap to $2.6 billion and unflatteringly with that of 2008. Sales at (see table). Dassault’s Falcon executive jet division grew Boeing delivered 481 aircraft, a steep in- just 0.2%, compared with 31.4% the previous crease on 2008’s figure of 375, which was year. Gulfstream swung from 14.2% growth to heavily affected by the 52-day machinists’ a 6.2% decline. Cessna’s reversal in fortunes strike of that year. “It’s not so much that EADS was even more dramatic, as it followed 13.2% won last time; Boeing lost,” comments Anna growth with a 41.4% decline. Hawker Beech- Sargeant, assistant director, strategy at craft also slipped into decline, with revenues PricewaterhouseCoopers. falling 10%. “This time round, we’re seeing a rebalanc- The scale of declines among business jet ing. While EADS hasn’t been doing particu- manufacturers means that major restructuring larly well in defence, I wouldn’t say this has is inevitable in that sector, in Sargeant’s view. been the fundamental driver for that change The defence aerospace sector fared better. in position,” she says. Its growth was well above that of the Top 100 Sargeant makes the case that the machin- as a whole. This represents a change from ists’ strike in some ways helped Boeing. “We 2008, when defence aerospace growth was were all expecting to see a massive fall-off in slightly below that of the Top 100. production last year – and it never really “This points to declines hitting civil aero- In association with came, which was impressive.” space more strongly,” says Pricewaterhouse- ❯❯ Gareth Burgess/Flightglobal Gareth However, delays to Boeing’s 787 delivery Coopers, which also notes “lower volatility” flightglobal.com 14-20 September 2010 | Flight International | 31 TOP 100 special REPORT

❯❯ in defence air systems procurement. PROFILE CHEMRING ALAN DRON In 2009, the top 14 defence aerospace divi- FLARES BUSINESS BURNS BRIGHTLY sions or companies grew 4%, compared with CHEMRING Group has contin- and development centre will 0.6% of growth for the Top 100. In 2008, the ued its steady progress up also be established. Similarly, top 15 defence players achieved growth of the Top 100 table this year the countermeasures division 6%, while the Top 100 was up 7%. through a mixture of organic is constructing a manufactur- Growth at the major US defence companies growth and acquisitions. ing facility in Salisbury, UK. Boeing, Lockheed Martin and Northrop The Fareham, UK-based The group’s expansion over Grumman was around 5%. However, Euro- group’s countermeasures divi- the past five years has been pean defence behemoth EADS suffered a sion manufactures airborne off the back of this booming 13.1% decline as growth slowed at the Euro- infrared and chaff decoys for countermeasures business. copter rotorcraft division while both Airbus fixed- and rotary-wing plat- Group chairman Ken Scobie Military and the Defence and Security Sys- forms. Its pyrotechnics division ascribes its development to tems division suffered declines. In 2008,

includes distress flare and Chemring “a clearly defined policy of EADS’s defence aerospace business had smoke marker production. Chemring chief David Price organic growth, a focused pro- grown by an extraordinary 47%. In spite of the recession, gramme of acquisitions... and the group passed three finan- subsequent investment in STRANGE CURRENCIES cial milestones in 2009: AT A GLANCE product and facilities to cover As usual, the figures in the Top 100 analysis group revenue exceeded future expansion”. have been “dollarised” on a fixed exchange £500 million ($750 million) ■ Top 100 rank 68 Chemring’s latest orders rate for the entire 12 months, to reflect the re- for the first time, underlying ■ HQ Fareham, UK include a four-year contract to ality that the US dollar is the prime currency pre-tax profit rose above £100 ■ Aero revenues $786m supply IR flares for the US Air of aerospace sales globally, notwithstanding million and the group’s mar- ■ Sales growth 42.3% Force’s Lockheed Martin F-22 some substantial defence business that is ket capitalisation breached ■ Operating margin Raptor fleet plus a similar two- transacted in local currency. the £1 billion mark. The year- 20.4% year deal to cover the serv- end orderbook was up 37%, ■ ROCE 21.2% ice’s Boeing B-52 EADS’s defence aerospace at £559 million. ■ Employees 3,349 Stratofortresses. business was down 13.1% as Chemring claims to hold ■ CEO David Price Among the group’s newer slightly more than 50% of the divisions is Chemring growth slowed at Eurocopter global market for counter- Energetics, whose products measure flares, its share hav- Flares division won a five-year chief executive David Price ing risen sharply as a result of “indefinite delivery, indefinite describes as “anything that Sterling’s weakening against the dollar, last decade’s Iraqi campaign. quantity” contract to produce goes bang, whizz or whoosh”. from £0.54 per dollar to £0.64, was such that Its UK countermeasures busi- decoys for the protection of Essentially, it offers controlled Rolls-Royce’s sales could rise by 10.5% in ness continued to operate at transport aircraft, while explosions, such as charges local currency but fall by 7.1% in dollar terms, “very high levels of produc- Chemring Australia was to blow off aircraft canopies in while the various effects of the euro’s fall in tion”, says the group, with awarded a long-term contract an ejection sequence. value, from €0.68 per dollar to €0.72, includ- demand for flares for the to provide countermeasures Last year Chemring took ed an amplified decline at EADS and con- Eurofighter Typhoon continu- and pyrotechnics for the over California-based Hi-Shear strained growth at Finmeccanica. ing to grow as the number of Australian armed forces. Technology, which produces Depreciation of the Swedish kroner and In- aircraft in service with custom- A state-of-the-art manufac- squibs, cartridges and gas dian rupee turned local currency sales growth ers steadily increases. turing plant is being built near generators for the military avi- of 3.6% at Saab and 10% at Hindustan Aero- In the USA, its Kilgore Melbourne, while a research ation and space sectors. ■ nautics into dollar declines of 10.8% and 1.3% respectively. However, foreign exchange effects brought some good news for Japanese manufacturers. Aerospace sales fell in yen terms, but increased in dollar terms at Ishikawajima-Harima, Kawa- saki Heavy Industries and Mitsubishi Heavy Industries. The strong yen also helped to boost Fuji Heavy Industries’ rise up the rankings (see profile). However, in considering currency effects one must bear in mind that, across different companies, there is a varying correlation between the currency of a company’s main dom- icile, in which a high proportion of costs will be measured, and the currency in which the bulk of its sales contracts is denominated. Even within companies, there are varia-

US Air Force/Senior Airman Julianne Showalter Julianne Airman Force/Senior Air US tions. In its military business, Rolls-Royce has Chemring’s countermeasures division manufactures airborne infrared and chaff decoys as a major customer the UK Ministry of De- fence; its civil contracts tend to be in dollars.

32 | Flight International | 14-20 September 2010 flightglobal.com TOP 100 special REPORT Boeing View at the top: Boeing leapfrogged EADS as rising commercial and military sales coincided with declines in both areas for its European rival

Airbus, with its euro cost base, also tends to was higher among tier two and three suppli- 2008. Notably, its average operating margin yield dollars. “For all of these players, it really ers than among tier ones. slumped, from 8.1% in 2008 to 4.7% last depends who their customers are,” says year. Given that most European companies Sargeant. MOVERS AND SHAKERS will have largely euro cost bases and dollar It is also worth noting that exchange rates Collectively, the Top 100 pulled down reve- sales, movements in the exchange rate are will have fluctuated across the year, with the nues of $558 billion. The 49 North American likely to have played a significant role in result that a contract’s particular timing with- companies in the ranking accounted for 63% this result. in the year is significant. of this, or $352 billion. Their average operat- However, the composition of the top five As ever the Pareto rule applies to this year’s ing margin, meanwhile, was 10.4%, similar to companies by profit margin precisely - mir Top 100, with the top 20 companies racking the comparable figure for 2008. rored that of 2008, with TransDigm in the top up about 80% of sales and profits – to be more The Top 100’s European contingent, num- spot, ahead of FLIR Systems, Precision Cast- precise, 79% of the former and 78% of the lat- bering 38 companies, accounted for $177 parts, Garmin and Hindustan Aeronautics. ter. Average margin was lower for the top 20 billion of revenues, or 32% of the Top 100 The only change was that Precision Castparts than the Top 100, but variability in margin total, compared with $206 billion (35%) in moved ahead of Garmin. ❯❯

DEFENCE AEROSPACE

Sector rank Company Division Sales ($m) sales ($m) 2009 2008 2009 2008 1 1 Boeing Includes 85% of Boeing Defense, Space & Security 28,612 27,240 2 3 lockheed Martin Includes Aeronautics and Electronics 24,405 23,093 3 2 Northrop Grumman Excludes shipbuilding and 40% of aerospace (space estimate) 23,374 22,240 4 4 BAE Systems Excludes Land and Armament Systems 21,348 19,097 5 5 Raytheon Excluding Intelligence and Info Systems and estimated Space revenues ($1,000m) 20,677 19,042 6 7 Finmeccanica Excludes 34% Aeronautics; 15% Helicopters, Space 17,540 14,234 7 6 EADS Excludes Airbus Commercial, Space and 50% Eurocopter 15,305 17,603 8 8 United Technologies 80% Flight Systems (Sikorsky, Hamilton Standard) 9,534 9,260 9 10 l-3 Includes 71% sales to DoD, of which 75% estimated to be aerospace related 8,315 7,935 10 9 Thales Includes Defence 8,014 8,051 11 11 Honeywell Estimated 35% of revenues 3,767 4,428 12 13 Textron Bell Military (50% of Bell) plus Textron Systems 3,320 3,294 13 12 Israel Aerospace Industries 2,881 3,585 14 14 Dassault Aviation 1,364 2,100 SOURCE: PricewaterhouseCoopers flightglobal.com 14-20 September 2010 | Flight International | 33 TOP 100 special REPORT

PROFILE MARTIN-BAKER ALAN DRON Engines (Civil and Military) Sector rank Company Division Sales 2009 sales 2008 FAMILY BUSINESS JUMPS UP THE RANKINGS ($m) ($m) EJECTION seat specialist 1 General Electric Aircraft Engines (excl Smiths estimate) 15,919 16,353 Martin-Baker enters the Top 2 United Technologies Engines (Pratt & Whitney) 12,577 14,041 100 at 99 by virtue of a solid 23.3% jump in sales in 2009. 3 Rolls-Royce Civil Aerospace and Defence 10,124 11,480 “Overall growth and the 4 Safran Propulsion (Air & Space) 7,888 8,507 commencement of a variety of 5 Honeywell International Aerospace (estimates) 5,065 5,655 new projects” is how head of 6 MTU 3,630 3,986 business development 7 IHI Aero-Engines & Space Operations 2,957 2,890 Andrew Martin describes last 8 Avio Aeroengines and Avioservice 1,963 1,974 year’s progress. 9 Volvo Aero 1,020 1,156 Retrofit programmes got 10 ITP 666 707

under way on the Franco- Martin-Baker SOURCE: PricewaterhouseCoopers German Alpha Jet advanced Twin bosses: John (left) and James Martin trainer and on Boeing F/A-18 Hornets for several nations. to establish a global chain of COMMERCIAL AIRCRAFT Martin-Baker’s biggest and ejection seat maintenance, AT A GLANCE Sector rank 2009 sector rank 2008 Company Sales 2009 sales 2008 most significant win of 2009 repair and overhaul establish- ($m) ($m) was a £48 million follow-on ments to support the 90-plus ■ Top 100 rank 99 1 1 Airbus Commercial (excl ATR) 36,668 38,811 contract to refit Northrop T-38 nations who use the compa- ■ HQ Denham, UK 2 2 Boeing 34,051 28,263 Talon trainers for the US Air ny’s equipment. ■ Aero revenues $235m 3 3 Bombardier 9,357 9,965 ■ Force. Its Mk16 seats are re- The first of these, Marcos Sales growth 23.3% 4 5 Gulfstream 5,171 5,512 placing an older Northrop sys- Bernasconi Associates (MBA) ■ Operating margin 5 8 Dassault Aviation 3,393 3,384 tem on 450 T-38s. of Buenos Aires, Argentina, 22.6% 6 6 Embraer 3,368 4,238 Martin-Baker also won a received its certificate of ex- ■ ROCE 80.1% 7 4 Cessna 3,320 5,662 contract worth £23 million cellence in July. ■ Employees 800 ($35.4 million) to provide Just as important as high ■ CEO James & John 8 7 Hawker Beechcraft 3,199 3,547 seats to “multiple customers” technical standards and a Martin (joint) 9 9 ATR 1,400 1,300 for the Beechcraft T-6 trainer, track record is attitude, says SOURCE: PricewaterhouseCoopers analysis from company reports plus Eurofighter Typhoon Martin. “It’s not just a seat, Tranche 3A and Super Hornet it’s a piece of lifesaving equip- nel to the latter’s Denham deals worth £12 million each. ment and needs to be treated headquarters for training. Top 100 listed by company

A major milestone for the accordingly.” Companies such Martin-Baker is led by John Company ranking company this year was the as MBA have to show their and James Martin, twin sons Company 2009 2008 completion of the Joint Strike commitment to Martin-Baker’s of the company’s founder, Sir Aeroflex 78 76 Fighter ejection seat qualifica- standards by sending person- James Martin. ■ Alcoa 31 28 tion programme. Martin-Baker Alliant Techsystems 22 24 won a contract for this seat, Amphenol 74 79 the Mk16E, in 2003. Asco 92 96 It is also delivering thou- Avio 37 37 sands of crashworthy troop B/E Aerospace 41 41 and gunner seats to Sikorsky for the US Army and interna- BAE Systems 8 5 tional UH-60 helicopters. Ball 71 70 The company is looking at BBA Group 46 40 developing seats for ground Boeing 1 2 vehicles that will give protec- Bombardier 16 17 tion from mine blasts. It has CAE 50 49 developed prototypes, but Chemring 68 75 producing these commercially Cobham 33 35 will await a clear technical Crane 79 77 specification from customers. Curtiss-Wright 88 89 Martin says the company is Dassault Aviation 23 21 expanding its interests into Denel 95 new “other safety-related technologies” that he declines to de- Diehl Aerospace 93 100 tail, other than saying that “a Doncasters 94 92 lot of new products” are under Ducommun 89 93 consideration. EADS 2 1

However, one area he is Martin-Baker Eaton 47 46 willing to talk about is a plan Mk16 seats are replacing a Northrop system on 450 T-38s Elbit Systems 36 36

34 | Flight International | 14-20 September 2010 flightglobal.com TOP 100 special REPORT

Engines (Civil and Military) PROFILE KONGSBERG ALAN DRON Sector rank Company Division Sales 2009 sales 2008 ($m) ($m) JSF LINKS PROPEL FAST-RISING KONGSBERG and Aerostructures, won three ties. Kongsberg and Lockheed 1 General Electric Aircraft Engines (excl Smiths estimate) 15,919 16,353 major contracts in 2009, gain- have signed an agreement to 2 United Technologies Engines (Pratt & Whitney) 12,577 14,041 ing income streams that will integrate the missile on the 3 Rolls-Royce Civil Aerospace and Defence 10,124 11,480 continue for several years. aircraft. Production is due to 4 Safran Propulsion (Air & Space) 7,888 8,507 Defence Systems won the start in 2013. 5 Honeywell International Aerospace (estimates) 5,065 5,655 group’s largest-ever single Another agreement signed 6 MTU 3,630 3,986 contract when it was chosen, with Lockheed will see 7 IHI Aero-Engines & Space Operations 2,957 2,890 along with Raytheon, to pro- Aerostructures fabricate ad- 8 Avio Aeroengines and Avioservice 1,963 1,974 vide Finland with an NKr3 bil- vanced composite compo- 9 Volvo Aero 1,020 1,156 lion ($480 million) NASAMS II nents from carbonfibre and 10 ITP 666 707 air defence missile system. titanium for the F-35.

SOURCE: PricewaterhouseCoopers Kongsberg Defence Systems was also Initially worth NKr460 mil- Kongsberg chief Walter Qvam awarded an NKr166 million lion, the value of this work contract by the Norwegian could rise as high as NKr2.5 COMMERCIAL AIRCRAFT Defence Logistics billion in coming years, says

Sector rank 2009 sector rank 2008 Company Sales 2009 sales 2008 AT A GLANCE Organisation in April 2009 to the company. Its initial deliver- ($m) ($m) begin development of the joint ies will support Lot 3 low rate 1 1 Airbus Commercial (excl ATR) 36,668 38,811 ■ Top 100 rank 54 strike missile, which is an air- initial production aircraft, 2 2 Boeing 34,051 28,263 ■ HQ Kongsberg, Norway launched multi-role develop- which will begin the pro- 3 3 Bombardier 9,357 9,965 ■ Aero revenues ment of the company’s naval gramme’s transition to full 4 5 Gulfstream 5,171 5,512 $1,089m strike missile. rate production. ■ Sales growth 25% Although initially modest, “This is an important mile- 5 8 Dassault Aviation 3,393 3,384 ■ Operating margin 9.1% the latter contract may have stone for Kongsberg,” says 6 6 Embraer 3,368 4,238 ■ ROCE 22.4% major significance for Harald Ånnestad, president of 7 4 Cessna 3,320 5,662 ■ Employees 5,423 Kongsberg as the company Kongsberg Defence & 8 7 Hawker Beechcraft 3,199 3,547 ■ CEO Walter Qvam says the joint strike missile Aerospace. “The agreement 9 9 ATR 1,400 1,300 will be the only anti-ship mis- is the result of hard work from SOURCE: PricewaterhouseCoopers analysis from company reports sile designed to fit inside the both teams, and paves the IN JUST two years, Kongsberg weapons bay of the Lockheed way for years of close co-oper- Group has climbed 23 places Martin F-35 Lightning II. ation between our companies Top 100 listed by company in the Top 100, with a rise of This may be significant in this exciting programme.”

Company ranking 12 positions in the past 12 when the Joint Strike Fighter The parts will be produced Company 2009 2008 months. starts to be rolled out to air at a new 30,000m² Embraer 20 20 Led by Walter Qvam since forces in the next few years, (323,000ft²) plant built in Esterline 49 48 2007, the Norwegian technol- as it will provide an anti-ship Kongsberg. Finmeccanica 9 9 ogy group’s aerospace-related capability without compromis- Production is under way ■ Firth Rixson 86 69 divisions, Defence Systems ing the F-35’s stealth quali- and will last until 2015. FLIR Systems 73 85 Fuji Heavy Industries 58 65 Garmin 98 99 GenCorp 67 71 General Dynamics 4 6 General Electric 10 11 GKN 39 44 Goodrich 18 18 Hampson Industries 96 new Harris 24 26 Hawker Beechcraft 29 32 Heico 81 83 Heroux Devtek 97 new Hexcel 65 58 Hindustan Aeronautics 38 38 Honeywell International 13 14 Indra 61 59 Ishikawajima-Harima 34 34 Israel Aerospace Industries 35 31

ITP 72 73 MartinL ockheed ITT 19 19 Kongsberg is designing an anti-ship missile that will fit inside the Lightning II’s weapons bay

flightglobal.com 14-20 September 2010 | Flight International | 35 TOP 100 special REPORT

❯❯ Generally, the highest margins were to PROFILE KAMAN NIALL O’KEEFFE be had in aftermarket-rich businesses, evi- BELL PEALS FOR Kaman denced not just by the performances of KAMAN HAS risen five places TransDigm and Precision Castparts but by to number 83 in our Top 100 those of Chemring and Meggitt. after a year in which it won a AT A GLANCE Electronics was another sector offering five-year contract to build com- ■ Top 100 rank 83 profit potential, with Rockwell Collins and posite blade skins and core ■ HQ Bloomfield, Harris joining FLIR and Garmin among the assemblies for Bell Helicopter. Connecticut, USA By the terms of a deal it ■ Aero revenues $501m GKN increased aerospace values at $53 million, Kaman ■ Sales growth 5% was enlisted to manufacture ■ Operating margin 4.7% sales by almost 50% after 18 different assemblies for ■ ROCE 8.7% acquiring Filton Aerostructures ■ Bell’s H1, 406, 407, 412, Employees 4,032 from Airbus in January 2009 427, 429, 430 and BA609 ■ CEO Neal Keating Kaman rotorcraft. The work was as- Kaman chief Neal Keating signed to Kaman’s HeliworX plant in Bloomfield, has two arms to its business: whole grew 11.8% last year to prospering elite. As ever, specialising in a Connecticut, which also industrial distribution and aer- represent nearly 70% of the niche could shield a player from competition serves Boeing, Northrop ospace, which accounts for aerospace division’s sales. and boost profit potential. Grumman and Sikorsky. 43.7% of the total. In 2009 This overwhelmed a decline of However, general profitability was back to In 2008, Boeing awarded Kaman’s aerospace revenues roughly 8% in commercial aer- 2005 levels after five years of steady growth Kaman a contract to make grew 5% to $501 million. In ospace sales, although (see graph). In 2009 the Top 100’s average wing components and assem- addition to manufacturing me- Kaman cites the Boeing 787, margin was 8.5%, down from 9.1% in 2008. blies for the US Air Force’s tallic and composite aero- Airbus A350 and Airbus A380 That 2008 figure in turn matched the figure for Fairchild A-10 attack jets. The structures, the aerospace commercial types alongside 2001. Subsequently, average margin dropped inboard and outboard flaps, division markets and supports the Joint Strike Fighter as ram- as low as 6.9% – in 2003 – before its five con- slats and deceleron assem- the SH-2G naval and K-Max ping-up programmes in which secutive increases. blies are manufactured at commercial helicopters. It it is a participant. Aside from energy control systems special- Kaman’s Jacksonville, Florida also produces military safe- Production of Black Hawk ist Woodward Governor – which, having ac- facility, while bonding work is and-arm devices. cockpits for Sikorsky “dramati- quired MPC Products and HR Textron, grew carried out at HeliworX and While Kaman admits eco- cally ramped up” in 2009, revenues by two-thirds – the Top 100’s fastest- tooling fixtures produced by nomic conditions necessitated says Kaman, which also began Brookhouse, a UK company “painful but necessary ex- deliveries of 10 SH-2G(E) heli- Top 100 listed by company (continued)

Kaman acquired in 2008. pense and staff reductions”, copters it is upgrading for the Company ranking Founded in 1945, Kaman its military business as a Egyptian air force. But it had to Company 2009 2008 deal with fall-out from JAMCO 90 90 Australia’s Kaman SH-2G(A) Kaman 83 88 Super Seasprite naval helicop- Kawasaki Heavy Industries 40 42 ter programme, which was ter- Kongsberg 54 66 minated in 2008. Korea Aerospace Industries 63 67 In 2009 Kaman took title to L-3 Communications 11 13 the 11 Super Seasprites Ladish 91 94 Australia ordered in 1997. Deliveries of these upgraded Latécoère 76 60 ex-US Navy SH-2Fs had been Liebherr 60 57 due to begin in 2001, but prob- LISI 87 82 lems with the avionics delayed Lockheed Martin 3 3 full functionality until 2010-11 Loral Space & Comms 59 64 by the time the programme Magellan Aerospace 77 81 was cancelled in 2008. Martin Baker 99 new As it strives to sustain last Meggitt 44 39 year’s growth, Kaman is pursu- Mitsubishi Heavy Industries 21 22 ing the unmanned sector. In Moog 62 62 January, a project team com- MTU Aero Engines 27 25 prising Kaman and Lockheed Northrop Grumman 5 4 Martin demonstrated the unmanned K-Max helicopter to Orbital Sciences 53 53 the US Marine Corps. The PAIG 85 78 demonstration was to show Panasonic 55 54 the K-Max’s ability to resupply Parker Hannifin 42 45

US Marine Corps Marine US troops at forward operating Pilatus 80 80 Kaman’s unmanned K-Max was demonstrated this year bases in Afghanistan. ■ Precision Castparts 32 30

36 | Flight International | 14-20 September 2010 flightglobal.com TOP 100 special REPORT

growing company, based on aerospace sales PROFILE ITT STEPHEN TRIMBLE in local currency terms, was Norway’s Kongs- berg (see profile). ITT SHOWS GEOSPATIAL AWARENESS GKN was not far behind, increasing aero- US ENGINEERING company cameras that generate vast space sales by almost a half after acquiring ITT was not a mover in the Top amounts of data. Transmitting Filton Aerostructures from Airbus in January 100, remaining at number 19, all of that data to the ground 2009. After boosting its ranking by seven plac- but 2010 has brought big requires lots of bandwidth. es in 2008, Chemring (see profile) repeated the changes inside its $6.3 billion Ideally, most of the data could trick last year, with aerospace growth exceed- defence electronics arm, be processed on board the ing 40%. which caters to military and aircraft, with only a tiny frac- BAE Systems’ sales grew by one-third as it government markets. tion needing to be sent to the continued its acquisitions drive. After pur- By executive decree on 5 ground or downloaded on to a chasing MTC Technologies, Tenix Defence January, seven business units larger network. and Detica in 2008, it added unmanned air divided mainly along stan- ITT’s newly formed geospa-

vehicle specialist Advanced Ceramics Re- dalone product lines were ab- ITT tial systems division intends search last year. Its ranking slipped three plac- sorbed into three new “value ITT chief Steve Loranger to apply its background on es only because of a reclassification of its land centres”: electronic systems, space networks to this emerg- and armaments division. geospatial systems and infor- ing, adjacent market. The In addition to being among the fastest grow- mation systems. AT A GLANCE company is already supplying ers, BAE Systems was also in the top five The internal consolidation wide-area Gorgon Stare pods when it came to absolute growth, as measured came about one year after ■ Top 100 rank 19 to prime contractor Sierra by added revenues in dollar terms. Boeing David Melcher became presi- ■ HQ White Plains, New Nevada, which delivers the topped this table too, ahead of Finmeccanica, dent of ITT Defense & York, USA systems to the US Air Force which grew aerospace sales by one-fifth, and Information Solutions, which ■ Aero revenues $6,585m for integration on the General the defence giants that took third and fourth was bolstered three years ago ■ Sales growth -2.6% Atomics MQ-9 Reaper. The place in the rankings – Lockheed Martin and by the $1.7 billion acquisition ■ Operating margin 8.3% division is also teamed with General Dynamics. Lockheed’s sales rose $2.5 of EDO. ■ ROCE 10.7% Lawrence Livermore National billion. General Dynamics grew its revenues Perhaps the most dramatic ■ Employees 40,200 Laboratory on a mid-wave and by $2.7 billion, in the process jumping two change came in the new ge- ■ CEO Steven Loranger long-wave hyperspectral sen- places in the rankings. ospatial systems unit, which sor, says imaging scientist After achieving the highest growth of any combined the seemingly un- Bernard Brower. Top 100 company in 2008, French aerostruc- ❯❯ likely pairing of the space ITT has deep roots in Meanwhile, the Electronics business in Rochester, New space-based observation Systems value centre is being Top 100 listed by company (continued) York, and the night vision gog- systems, which require a high formed with pieces from the

Company ranking gles unit in Roanoke, Virginia, degree of on-board processing former communications sys- Company 2009 2008 into the same division. to manage massive loads of tems unit in Fort Wayne, Raytheon 6 8 Both units, however, are data collected by sensors Indiana and elements of the Rockwell Collins 25 23 fundamentally based on imag- tracking objects the size previous intelligence and in- Rolls-Royce 14 15 ing systems, and the move of planets. formation warfare unit in Ruag 48 50 coincides with the company’s Meanwhile, US military of- Nashua, New Hampshire. strategic push to chase the ficials have developed a need The goal for each of the Saab 28 27 rapidly growing market for air- for wide area airborne surveil- three new units is to combine Safran 12 12 borne intelligence, surveillance systems and hyperspec- technical expertise for new Senior 84 84 lance and reconnaissance. tral sensors. Both are integrated products. ■ Sequa 64 55 Singapore Technologies Eng 52 51 SKF 82 87 Spirit AeroSystems Holdings 26 29 Stork 66 63 Teledyne Technologies 45 43 Terma 100 new Textron 17 16 Thales 15 10 TransDigm Group 69 72 Triumph Group 51 52 Ultra Electronics 57 61 Umeco 75 74 United Technologies 7 7 Volvo 56 56 Vought Aircraft Industries 43 47

Woodward Governor 70 91 ITT Zodiac 30 33 The space business and the night vision goggles unit have made a seemingly unlikely pairing

flightglobal.com 14-20 September 2010 | Flight International | 37 TOP 100 special REPORT

PROFILE FUJI HEAVY INDUSTRIES ARIF RAHMAN FUJI’S HEAVYWEIGHT UAV AMBITIONS FUJI HEAVY Industries, a wing boxes, for which Boeing Japanese conglomerate that had to develop a modification, also manufactures automo- delaying the type’s first flight. biles, has jumped seven plac- Fuji has been manufactures to number 58 in the Top ing components for Boeing 100 after growing aerospace since 1973, serving the 767 revenues 15.3% in 2009. and 777 programmes before Within its aerospace opera- it joined the 787 team. For tions, Fuji specialises in ad- the 777, as for the 787, its vanced composites, from role is to manufacture the which it manufactures wings centre-wing section that joins and other structural compo- the main wings and fuselage. nents. The company also of- Smaller than other fers expertise in flight-control Chief executive Ikuo Mori Japanese aerospace con- and other technologies for glomerates such as unmanned aircraft. Mitsubishi, which holds the The forward field observa- AT A GLANCE lion’s share of fighter manu- tion system Fuji began manufacturing, and Kawasaki facturing in 2003 has found ■ Top 100 rank 58 Heavy Industries, dominant in favour with Japan’s ministry of ■ HQ Tokyo, Japan military products, Fuji priori- defence. Three units of the ■ Aero revenues $996m tised the unmanned sector as unmanned helicopter type ■ Sales growth 15.3% one in which it can carve a have been built for the army’s ■ Operating margin 5.2% lucrative niche. artillery units. A civil version of ■ ROCE 4% For Japan’s air force, it has the design, dubbed the RPH- ■ Employees 13,000 (est) been developing a fixed-wing 2, has also been developed. ■ Chief executive Ikuo Mori unmanned air vehicle that can The RPH-2 carries a chemical be deployed from under the pesticide tank and spray wing of a fighter aircraft. boom for agricultural use. total of 88 777s were deliv- It has also developed and In 2009 Fuji’s civil reve- ered in 2009, compared with tested a Fuji aerial robot sys- ❯❯ tures and cabling specialist Latécoère suf- nues were boosted by rising 61 in 2008. tem that uses a global posi- fered the sharpest contraction in 2009, with sales of the Boeing 777 after Last year was, however, tioning system for navigation its sales dropping by more than one-third as it resolution of the machinists’ clouded by the delay to the and autonomously handles bore the impact of Boeing 787 delays, delivery strike that crippled the US Boeing 787 programme. Fuji take-offs and landings by slowdowns at Embraer and Dassault, and a airframer’s production line. A manufactures 787 centre small fixed-wing aircraft.■ dispute over a business jet contract. Indicative of the continuing consolidation of aerospace manufacturing, Hampson Indus- tries managed to re-enter the Top 100 despite its aerospace sales falling by almost 30%, a figure affected by its disposal of Hampson Aerospace Machining.

CHART PLACINGS While Boeing moved past EADS, five other companies in the top 20 also improved their positions. General Dynamics and Raytheon each jumped two places, to fourth and sixth place respectively. GE and Rolls-Royce each rose one place, with the former in 10th position and the latter in 14th. These progressions were at the expense of Thales, Textron, Northrop Grumman and BAE. Thales dropped five places to fifteenth after a reclassification of revenues to exclude the security division, which is not involved in aerospace manufacturing. Northrop slipped one place to fifth and Textron by one place to seventeenth. As mentioned, a reclassification

Boeing affected BAE’s placing. Japanese companies are among the suppliers to, as well as customers for, Boeing’s 787 Elsewhere in the Top 100, the rising stars were Woodward Governor (up to 70 from 91),

38 | Flight International | 14-20 September 2010 flightglobal.com TOP 100 special REPORT

COMMENTARY PRICEWATERHOUSECOOPERS NEIL HAMPSON ACCELERATING GLOBAL GROWTH THE AEROSPACE and defence of talent; companies must of certain technologies and industry is the largest exporter recruit the best people from place regulations on foreign in the USA. But exports are around the world. governments such as end-use only one measure of globali- “I don’t think there’s a tal- monitoring requirements. The sation. When we also con- ent shortage, but I think there complexity of regulations cre- sider the international supply are particular societies and ates significant risks and in- chain and foreign direct in- economies that focus on differ- creases compliance costs. vestments, aerospace and ent areas of expertise,” said Companies also face chal- defence ranks in the middle Tim Mahoney, president and lenges in the area of ethics among other industries. chief executive of Honeywell and compliance. They must The shift in wealth towards Aerospace. “Our strategic plan not only understand local laws emerging economies is chang- is to hire the best engineers and cultures, but also edu- ing the competitive land- around the world.” cate their international em- scape, and as aerospace and In 2008, foreign direct in- ployees and partners on their defence companies expand vestment by the top 50 global own country’s regulations and their global footprints, a race aerospace and defence com- ethical standards. to capitalise on rising opportu- panies climbed to a record. International customers are nities has begun. While the search for low-cost demanding more in the way of The Asia-Pacific region is manufacturing remains an im- technology transfer, direct off- expected to account for 37% portant motivation, research sets and foreign direct invest- of the value of all new aircraft and development investments ment. Companies must weigh deliveries over the next 20 have increased significantly, the competitive and perform- years – nearly as much as including the hiring of talent in ance risks inherent in these North America and Europe engineering and other critical issues, as well as the value of combined. “Who would have areas. The top five recipients their offset investments. thought 20 years ago that we of foreign direct investment in Companies must also manage would be able to sell aero- the aerospace and defence financial risk related to foreign

Finmeccanica structure products to China industry were India, China, the currencies. This can be par- and other countries that were USA, Russia and Mexico. ticularly challenging because Finmeccanica – which owns Alenia and its closed markets? This has revenue and costs may be in “sky light” simulator in Turin – grew sales by changed the world tremen- OPPORTUNITIES different currencies over a long 21% last year dously,” says Gilles Labbé, As globalisation creates op- period, combined with the in- president and chief executive portunities, it introduces chal- herent limitations of the cur- Kongsberg (54 from 66), FLIR (73 from 85), of Héroux-Devtek. lenges that require new rency hedging markets. Chemring (68 from 75), Fuji Heavy Industries Since the end of the Cold management tactics. Industry With these issues in mind, (58 from 65), Diehl (93 from 100), SKF (82 War, international threats have executives interviewed in the companies must conduct from 87), Loral Space & Communications (59 changed but not diminished. PricewaterhouseCoopers’ re- thorough due diligence and from 64), Amphenol (74 from 79) and Kaman The world faces adversaries port A&D Insights: Accelerating understand long-term eco- (83 from 88; see profile). who are often unpredictable Global Growth identified the nomic, political, cultural, and and difficult to identify. following issues as their top demographic trends before The unmanned air vehicle Regional tensions in the challenges: protection of intel- investing in global markets. market was a focus of Middle East and Asia keep lectual property; cost and Globalisation is driving defence equipment in de- complexity of export regula- growth in the aerospace and acquisitions pursued by mand. US companies took tions; ethics and compliance defence industry. However, the prime contractors $38 billion in new defence or- across cultures; increasing changing landscape creates ders in the most recent fiscal financial risk, particularly cur- new competitive threats and year, and that could increase. rency exchange rate risk; and complex operational challeng- Latécoère’s diving sales brought a slide in Globalisation also offers management of expanding es. The race is on. Companies the rankings, to 76 (from 60 in 2008). There companies greater access to offset requirements. that can best manage these was an even harder landing for Firth Rixson, talent and labour. According Intellectual property protec- complex challenges will be which limped in at 86 after being placed at 69 to some estimates, India pro- tion poses perhaps the most tomorrow’s leaders. ■ the previous year. Elsewhere, there were sig- duces about as many engi- significant barrier to globalisa- Neil Hampson is nificant diminutions of status for Sequa (64 neering graduates as the tion – many countries with the global aerospace and from 55), Hexcel (which completed Fuji’s USA, and China produces sig- highest growth rates have the defence leader at journey in reverse, moving to 65 from 58), nificantly more engineering weakest intellectual property PricewaterhouseCoopers. PAIG (85 from 78) and BBA (46 from 40). and technology PhDs than the laws and enforcement. The A&D Insights: USA or India. Aerospace and The complexity and limita- Accelerating Global Growth MERGER RE-EMERGENCE defence companies cannot tions of export regulations of- report can be viewed at “There was limited merger and acquisition remain competitive by relying fer another key challenge. US www.pwc.com/gx/en/ activity from financial investors in 2009,” solely on traditional sources regulations restrict the export aerospace-defence says PricewaterhouseCoopers, which notes ❯❯ flightglobal.com 14-20 September 2010 | Flight International | 39 TOP 100 special REPORT

❯❯ a prevalence of “uncertainty, particu- AVERAGE OPERATING MARGIN OF TOP 100 AEROSPACE AND DEFENCE COMPANIES larly in commercial aerospace”. Nonethe- less, there was “a notable number” of trans- Operating margin (%) actions by corporate players, with US 10% 9.7% companies dominating among both acquir- 9.1% 8.9% 9.0% 9.1% ers and targets, although European players 8% 8.5% 8.5% seeking dollar-zone presences were also ac- 7.4% 7.2% 6.9% tive as acquirers. 6% In July 2009, Boeing acquired the assets and operations of Vought Aircraft Industries’ 4% South Carolina facility, where aft fuselage sections for the 787 are fabricated and stuffed. The rest of Vought Aircraft Industries was ac- 2% quired by Triumph in June, a transaction falling outside the timeframe relevant to this 0% year’s Top 100. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 SOURCE: PricewaterhouseCoopers In December, Boeing continued its efforts to regain control of the delay-hit 787 programme by purchasing from Alenia Aeronautica the by Sargeant: “At what point is there going to were afflicted by delays and cost overruns. outstanding 50% of Global Aeronautica, be a serious investment made into Asia? And MAX Credit markets, meanwhile, remained tight. which integrates centre fuselage sections at a what’s going to be the game-changing devel-NEWSCompared with its civil counterpart, the de- facility also in South Carolina. opment which makes that happen? It’s some n top100- fence Xa sector remained relatively robust, an EADS, meanwhile, pursued transactions thing that’s been on the horizon for a number outcome PwC attributes to “reliance on public aimed at boosting its presence in the ro- of years now, but we haven’t seen significant114 x sector58 funding”. However, large military plat- torcraft market. In April 2009 it took an 80% investments.” The ramp-up of activity at Air- forms garnered fewer orders, reflecting “a shift stake in Euroheli and in October it purchased bus China may serve as a catalyst to increased in the defence strategy away from previous 60% of All Nippon Airways’ helicopter investment in the wider region. large-scale heavy programmes to more intelli- maintenance business. Generally, corporate investors will con- gence-based and intelligence-support pro- tinue to pursue acquisitions as a means of ac- grammes”, says PwC. “There are a number of funds cessing growth markets while financial in- “Companies were adapting to adjustments already raised but looking for vestors will target niche companies with in defence procurement to focus even more on higher profit potential, predicts Sargeant. flexible, mobile and responsive force struc- the right investment” “There are a number of funds which have tures, with an increasing focus on logistics and Anna Sargeant already been raised but are looking for the life-cycle support,” adds the consultancy. PricewaterhouseCoopers assistant director, strategy right investment – and some players who are Amid uncertainty over the future outlook able to make investments with almost 100% for civil aircraft demand, Airbus and Boeing equity,” she notes. “And then there are play- managed their orders carefully, PwC suggests. The company placed third in the Top 100, ers looking to exit.” The airframers avoided sharp declines in de- Lockheed Martin, was not inactive when it livery numbers, but put production ramp-up came to takeovers. It acquired Universal THE BIG PICTURE plans on hold. Systems & Technology, which provides in- Overall, 2009 was “a challenging year for the Meanwhile, the airframers’ efforts to reor- teractive training and simulation services, global aerospace industry”, says PwC. Re- ganise their supply chains around fewer sup- in January 2009. Gyrocam Services, a manu- duced passenger and air freight demand pliers continued. “The increased prevalence facturer of gyrostabilised optical surveil- brought a dramatic decline in new aircraft or- of risk- and revenue-sharing partnerships lance systems, joined the Lockheed empire ders as airlines looked to preserve cash. Mili- meant that their supply chains were more ex- in August. tary and commercial programmes – including posed to changes in delivery profile than ever The unmanned air vehicle market was a the Airbus Military A400M and Boeing 787 – before,” says PwC. ❯❯ target for a number of prime contractors. Northrop Grumman acquired the design TOP PERFORMERS MEASURED BY MARGIN rights to Swift Engineering’s KillerBee prod- Rank by rank by rank by Company Aerospace operating operating uct line in May 2009. The following month, margin margin aerospace name sales margin margin BAE moved to extend its UAV reach by buy- 2009 2008 sales (2009) $m (2009) (2008) ing Advanced Ceramics Research. 1 1 69 TransDigm Group 762 44% 42% Raytheon’s move up the charts was aided 2 2 73 FLIR Systems 655 30% 26% by its acquisition, in October, of BBN Tech- 3 4 32 Precision Castparts 2,991 27% 23% nologies, a provider of command, control, 4 3 98 Garmin 246 27% 25% communications and intelligence (or “C3I”) 5 5 38 Hindustan Aeronautics 2,337 23% 23% systems. GKN, another chart riser, acquired 6 15 99 Martin-Baker 235 23% 15% Filton Aerostructures from Airbus in January 7 6 68 Chemring 786 20% 21% 2009, going on to win additional work pack- 8 14 44 Meggitt 1,794 20% 15% ages on the Airbus A350 XWB and the Joint 9 7 25 Rockwell Collins 4,470 20% 20% Strike Fighter. 10 97 96 Hampson Industries 264 19% -1% As M&A activity continues to pick up, SOURCE: PricewaterhouseCoopers some important questions arise, as identified

40 | Flight International | 14-20 September 2010 flightglobal.com TOP 100 special REPORT

❯❯ That regional and business jet manu- consultancy, noting decisions made by Airbus Maintenance deferred during the downturn facturers were not able to manage the volatil- and Boeing to ramp up production of narrow- will finally be carried out. However, the main- ity in their markets as easily is reflected in body aircraft. tenance industry’s centre of gravity is likely to declines approaching 40% for those worst In the widebody sector, meanwhile, a re- shift, since airline growth is focused in Asia, affected. think is under way. “Boeing and Airbus are the Middle East and Africa. For defence aerospace’s prime contractors, being forced to reconsider the best way of de- As the commercial market picks up, the meanwhile, diversification into unmanned livering large programmes,” says PwC. “The outlook for defence aerospace grows cloudier technologies represents a means of mitigating strategy of outsourcing and joint ventures fa- amid intensifying pressure on the US and UK risk on core air systems programmes. voured for so much of the last decade is being defence budgets, and indeed on public spend- questioned as they try to exert supply chain ing generally. The upshot, by PwC’s reckon- A BRIGHTER FUTURE? discipline and control.” ing, is that governments are using “new meth- When looking to the likely outcome of this In the aftermarket business, prospects have ods to develop, acquire, finance and support year, PwC sounds a note of optimism. “As glo- been boosted by increased aircraft utilisation, defence equipment”. bal economies recover, we are seeing a return even if the recession has expedited the exit of For defence suppliers, there is a need to re- to airline demand growth in 2010,” says the older types requiring heavier maintenance. think supply chains and “explore cross-na-

Rank (08) Company (country) Aero sales ($m) Total sales ($m) operating result ($m) operating margin Capital roCE (%) Personnel sales per employee ($) Comments Division 2009 2008 2009 growth* 2009 2008 2009 2008 employed 2009 2008 2009 headcount growth 2009 growth

1 (2) Boeing (USA) 68,281 60,909 68,281 12.1% 2,096 3,950 3.1% 6.5% 29,170 7.2% 17.2% 157,100 -3.1% 434,634 15.7% Acquired assets and operations of Vought Aircraft Industries’ South Carolina Commercial Airplanes 34,051 20.5% -583 1,186 -1.7% 4.2% facility in July 2009 Boeing Defense, Space & Security 33,661 5.0% 3,299 3,232 9.8% 10.1% Acquired outstanding 50% stake of Global Aeronautica in December 2009 Boeing Military Aircraft 14,057 5.6% 1,513 1,277 10.8% 9.6% Network and Space Systems 10,877 -4.1% 839 1,034 7.7% 9.1% Global Services & Support 8,727 18.1% 947 921 10.9% 12.5% Boeing Capital Corp/Other/Accounting differences 569 -5.0% -620 -468 -109.0% -78.1% 2 (1) EADS (Netherlands) 59,544 63,308 59,544 -1.0% -528 4,056 -0.9% 6.4% 52,739 -1.0% 7.0% 119,506 1.0% 498,255 -2.0% Airbus Commercial 36,668 -0.6% 505 3,335 1.4% 8.6% EBIT affected by A400M provision and foreign exchange effects Airbus Military 3,108 -19.0% -2,442 -724 -78.6% -17.9% Acquired 80% stake in Euroheli and 60% of All Nipon Airways’ helicopter Eurocopter 6,355 1.9% 364 427 5.7% 6.5% maintenance business (Asia) in October 2009 Defence and Security Systems 7,457 -5.4% 608 584 8.1% 7.0% Space (Astrium) 6,673 11.9% 357 338 5.4% 5.4% Other Business (and HQ) 1,563 -17.4% 79 97 5.1% 4.9% 3 (3) Lockheed Martin (USA) 45,189 42,731 45,189 5.8% 4,466 5,131 9.9% 12.0% 24,408 18.3% 22.4% 136,000 -6.8% 332,272 13.5% Acquired Universal Systems & Technology (interactive training and simulation) and Aeronautics 12,201 6.3% 1,577 1,433 12.9% 12.5% Gyrocam Services (gyrostabilised optical surveillance systems) Electronic Systems 12,204 5.0% 1,595 1,508 13.1% 13.0% IS&GS (Information Systems & Global Services) 12,130 4.5% 1,011 1,076 8.3% 9.3% Space Systems 8,654 7.8% 972 953 11.2% 11.9% 4 (6) General Dynamics (USA) 31,981 29,300 31,981 9.2% 3,675 3,653 11.5% 12.5% 20,706 17.7% 20.3% 91,700 -0.7% 348,757 9.9% Acquired AxleTech International (supplier of axles for specialty trucks and military Aerospace 5,171 -6.2% 707 1,021 13.7% 18.5% vehicles) – into Combat Systems – in December 2008 Combat Systems 9,645 17.7% 1,262 1,111 13.1% 13.6% Marine Systems 6,363 14.5% 642 521 10.1% 9.4% Information Systems and Technology 10,802 7.6% 1,151 1,075 10.7% 10.7% Corporate -87 -75 5 (4) Northrop Grumman (USA) 27,542 26,170 33,755 4.5% 2,483 -263 7.4% -0.8% 23,267 10.7% -1.2% 120,700 -2.3% 279,660 2.0% Acquired Sonoma Photonics and assets from Swift Engineering’s Killer Bee Aerospace Systems 10,419 6.0% 1,071 416 10.3% 4.2% unmanned air systems product line in April 2009 – included in the Aerospace Electronic Systems 7,671 8.8% 969 947 12.6% 13.4% segment Information Systems 8,611 4.9% 631 629 7.3% 7.7% Shipbuilding 6,213 1.1% 299 -2,307 4.8% -37.5% Technical Services 2,776 9.5% 161 144 5.8% 5.7% Intersegment eliminations -1,935 -202 -128 10.4% 8.9% 6 (8) Raytheon (USA) 24,881 23,174 24,881 7.4% 3,042 2,620 12.2% 11.3% 18,084 16.8% 14.6% 75,000 2.7% 331,747 4.5% Acquired BBN Technologies (C3I systems) Integrated Defence Systems 5,525 7.3% 859 870 15.5% 16.9% Intelligence and Information Systems 3,204 2.3% 259 253 8.1% 8.1% Missile Systems 5,561 2.8% 604 584 10.9% 10.8% Network Centric Systems 4,822 6.9% 674 575 14.0% 12.7% Space and Airborne Systems 4,582 7.1% 647 569 14.1% 13.3% Technical Services 3,161 21.5% 215 174 6.8% 6.7% Corporate and Eliminations -1,974 -216 -405 10.9% 21.3% 7 (7) United Technologies (USA) 24,494 25,616 52,920 -11.4% 6,465 7,625 12.2% 12.8% 37,849 17.1% 20.6% 206,700 -7.4% 256,023 -2.7% Engines (Pratt & Whitney) 12,577 -10.4% 1,835 2,122 14.6% 15.1%

42 | Flight International | 14-20 September 2010 flightglobal.com TOP 100 special REPORT

tional synergies”, according to the consultan- many defence players. In the UK, the industry now well-established prevalence of risk- cy. “The activity in the security, surveillance anxiously awaits the outcome of the Strategic sharing partnerships means that any volatil- and homeland security sectors is likely to con- Defence and Security Review, which is due in ity at Airbus and Boeing will reverberate tinue as suppliers invest in growth areas away October. Meanwhile, desire to limit exposure through their supply chains. “That’s a big from the traditional defence budgets,” it says. to home markets’ defence budgets is evident, change companies are having to deal with,” Nevertheless, the US Quadrennial Defense for example, in the priority afforded by BAE she says. Review, issued in February, and the US de- Systems to the Indian market. At the same time, companies are likely to fence budget for fiscal year 2011 have elimi- While 2010’s overall results are likely to be be “more savvy” when it comes to negotiat- nated some of the uncertainty regarding that “stable with some growth, it’s a really a ques- ing future risk-sharing partnerships, says nation’s defence spending priorities, and this tion of what strategic moves companies make Sargeant. This applies not just to suppliers has enabled strategic decisions to be taken. in order to deal with changes coming down the but the primes too. “The prime contractors pipe in the defence market”, says Sargeant. are recognising that if they pass too much UNMANNED SECTORS She sees profitability as likely to increase, risk to their supply chain, then it’s actually Increased interest in the support and un- but cautions that fluctuating exchange rates the prime contractor that will feel the pain in manned sectors can be discerned among will continue to have an impact. Equally, the the end.” ■

flightglobal.com 14-20 September 2010 | Flight International | 43 TOP 100 special REPORT

Rank (08) Company (country) Aero sales ($m) Total sales ($m) operating result ($m) operating margin Capital roCE (%) Personnel sales per employee ($) Comments Division 2009 2008 2009 growth 2009 2008 2009 2008 employed 2009 2008 2009 headcount growth 2009 growth

Flight Systems (Sikorsky, Hamilton Sundstrand) 11,917 3.0% 1,465 1,577 12.3% 13.6% 8 (5) BAE Systems (UK) 21,348 19,097 31,777 22.2% 1,215 3,154 3.8% 10.2% 20,922 5.8% 11.4% 98,000 4.3% 324,258 17.2% Acquired Advanced Ceramics Research (global unmanned aircraft systems) in 2009 Electronics, Intelligence & Support 8,577 26.0% 1,157 1,007 13.5% 12.4% Acquired MTC Technologies (USA), Tenix Defence (Australia) and Detica in 2008 Land & Armaments 10,430 4.9% -688 664 -6.6% 5.6% Programmes & Support 8,195 36.8% 1,022 1,185 12.5% 16.6% International Businesses 4,255 45.4% 633 529 14.9% 15.2% HQ & other businesses 321 -2.4% -546 -211 -169.9% -54.0% 9 (9) Finmeccanica (Italy) 20,778 17,613 25,274 20.9% 1,936 1,771 7.7% 8.0% 19,178 10.1% 9.4% 73,056 -0.5% 345,953 16.0% Acquired US Group DRS Technologies (defence and Aeronautics 3,672 4.4% 334 360 9.1% 9.7% security electronics) in October 2008 Space 1,264 -8.6% 60 91 4.7% 6.2% Helicopters 4,839 14.7% 506 503 10.5% 11.3% Defence and Security Electronics 9,341 54.0% 855 522 9.2% 8.2% Defence Systems 1,662 7.1% 172 170 10.4% 10.4% Energy 2,297 23.9% 197 179 8.6% 9.2% Transportation 2,518 0.7% -13 167 -0.5% 6.3% Other activities 570 6.2% -177 -221 -31.0% -39.1% Eliminations -890 10 (11) General Electric (USA) 18,728 19,239 156,783 -14.1% 15,435 23,669 9.8% 13.0% 602,342 2.6% 4.1% 304,000 -5.9% 515,734 -8.7% Technology infrastructure - Aviation 11 (13) L-3 Communications (USA) 15,615 14,901 15,615 4.8% 1,656 1,559 10.6% 10.5% 12,331 13.4% 13.2% 67,000 3.1% 233,060 1.7% Acquired Chesapeake Sciences (data acqusition systems for military application) C3 and ISR 3,095 22.0% 344 244 11.1% 9.6% Government Services 4,155 -3.8% 397 426 9.5% 9.9% Aircraft Modernization and Maintenance 2,826 5.8% 243 243 8.6% 9.1% Electronic Systems 5,538 3.1% 673 646 12.1% 12.0% 12 (12) Safran (France) 14,528 15,114 14,528 1.2% 922 1,188 6.3% 7.9% 12,185 7.6% 11.8% 54,900 2.9% 264,628 -1.7% Divested communications business in 2008 Aerospace Propulsion 7,888 -2.4% 914 869 11.6% 10.2% Acquired 81% of GE’s Homeland Protection and Motorola’s biometrics businesses Aircraft Equipment 3,848 -0.3% 3 91 0.1% 2.2% Defence 1,475 3.9% 13 59 0.8% 3.9% Security 1,257 30.1% 76 263 6.1% 25.9% Holding 60 79.2% -83 -38 -139.5% -266.7% 13 (14) Honeywell International (USA) 10,763 12,650 30,908 -15.5% 3,437 4,277 11.1% 11.7% 24,857 13.8% 18.4% 122,000 -4.7% 253,344 -11.3% Aerospace International 10,763 -14.9% 1,893 2,300 17.6% 18.2% 14 (15) Rolls-Royce (UK) 10,124 11,480 15,765 10.5% 1,831 1,586 11.6% 9.3% 14,209 12.9% 9.6% 38,500 -1.0% 409,491 12.5% Acquired outstanding shares in Europea Microfusioni Aerospaziali (precision Civil Aerospace 6,989 -0.5% 769 1,050 11.0% 12.6% components for aircraft engines) Defence Aerospace 3,135 19.2% 395 414 12.6% 13.2% 15 (10) Thales (France) 9,925 10,481 17,911 1.7% 72 1,101 0.4% 5.9% 9,067 0.8% 12.9% 64,285 1.6% 278,621 0.1% Aerospace/Space 5,661 -1.7% -431 303 -7.6% 5.0% EBIT is impacted by PPA (purchase price allocation) adjustments, reducing it by Defence 8,014 4.7% 756 790 9.4% 9.8% €99 million in 2009 Security 4,167 3.6% -15 230 -0.4% 5.4% Others and divested businesses 97 -46.2% -102 -40 -104.3% -20.8% PPA -138 -182 16 (17) Bombardier (Canada) 9,357 9,965 19,366 -1.8% 1,098 1,429 5.7% 7.2% 9,509 11.5% 16.3% 28,900 -11.1% 670,104 10.4% Aerospace 9,357 -6.1% 473 896 5.1% 9.0% 17 (16) Textron (USA) 8,061 10,369 10,500 -25.1% 311 1,280 3.0% 9.1% 16,072 1.9% 8.4% 32,000 -25.6% 328,125 -1.0% Bell 2,842 0.5% 304 278 10.7% 9.8% Cessna 3,320 -41.4% 198 905 6.0% 16.0% Textron Systems 1,899 1.0% 240 251 12.6% 13.4% 18 (18) Goodrich (USA) 6,686 7,062 6,686 -5.3% 929 1,101 13.9% 15.6% 7,128 13.0% 19.5% 24,000 -4.0% 278,583 -1.4% Acquired Cloud Cap Technology and Atlantic Inertial Systems Actuation and Landing Systems 2,524 -3.5% 267 300 10.6% 11.5% Nacelles and Interior Systems 2,323 -6.6% 515 648 22.2% 26.1% Electronic Systems 1,839 -6.2% 276 269 15.0% 13.7% Corporate expenses -129 -115 19 (19) ITT (USA) 6,585 6,757 10,904 -6.8% 909 1,210 8.3% 10.3% 8,513 10.7% 18.8% 40,200 -1.5% 271,244 -5.4% Fluid Technology 3,363 -12.4% 393 469 11.7% 12.2% Defense Electronics and Services 6,297 0.2% 776 727 12.3% 11.6% Motion & Flow Control 1,253 -20.9% 118 192 9.4% 12.1% Eliminations -9 -378 -177 4391.9% 1541.7%

44 | Flight International | 14-20 September 2010 flightglobal.com TOP 100 special REPORT

Rank (08) Company (country) Aero sales ($m) Total sales ($m) operating result ($m) operating margin Capital roCE (%) Personnel sales per employee ($) Comments Division 2009 2008 2009 growth 2009 2008 2009 2008 employed 2009 2008 2009 headcount growth 2009 growth

flightglobal.com 14-20 September 2010 | Flight International | 45 TOP 100 special REPORT

Rank (08) Company (country) Aero sales ($m) Total sales ($m) operating result ($m) operating margin Capital roCE (%) Personnel sales per employee ($) Comments Division 2009 2008 2009 growth 2009 2008 2009 2008 employed 2009 2008 2009 headcount growth 2009 growth

20 (20) Embraer (Brazil) 5,466 6,335 5,466 -13.7% 336 537 6.1% 8.5% 5,684 5.9% 10.5% 16,853 -28.3% 324,352 -35.1% Commercial Aviation 3,368 -20.5% 134 278 4.0% 6.6% Defence 499 -1.1% 60 62 12.0% 12.2% Executive Aviation 896 2.6% 30 62 3.3% 7.0% Aviation Services 588 -2.5% 103 113 17.6% 18.8% Others 116 -0.8% 10 23 8.2% 19.6% 21 (22) Mitsubishi Heavy Industries (Japan) 5,343 5,089 31,414 -12.9% 701 1,053 2.2% 3.1% 28,916 2.4% 4.2% Aerospace 5,343 -2.2% -68 -102 -1.3% -2.0% 22 (24) Alliant Techsystems (USA) 4,808 4,583 4,808 4.9% 512 385 10.6% 8.4% 3,082 16.6% 15.0% 18,000 -5.3% 267,089 10.7% Acquired Eagle Industries in March 2009 Armament Systems 2,165 24.6% 257 172 11.9% 9.9% Space Systems 1,374 -15.7% 138 80 10.0% 4.9% Mission Systems 1,269 4.5% 137 153 10.8% 12.6% Corporate -20 -20 23 (21) Dassault Aviation (France) 4,757 5,484 4,757 -8.7% 546 653 11.5% 11.9% 6,754 8.1% 10.4% 12,215 -1.4% 389,434 -7.4% Acquired shares in Thales (from Alcatel-Lucent and Defence 1,364 -31.6% GIMD), increasing its interest to 26% Falcon (executive jet) 3,393 5.5% 24 (26) Harris (USA) 4,755 4,470 5,206 4.0% 913 538 17.5% 10.7% 3,692 24.7% 16.0% 15,000 -9.1% 347,073 7.8% Defense Communications and Electronics 2,067 17.4% 707 572 34.2% 32.5% Government Communications Systems 2,688 -0.8% 337 303 12.5% 11.2% 25 (23) Rockwell Collins (USA) 4,470 4,769 4,470 -6.3% 885 974 19.8% 20.4% 3,286 26.9% 40.5% 19,300 -4.9% 231,606 -1.4% Government Systems 2,579 9.0% 602 486 23.3% 20.5% Commercial Systems 1,891 -21.3% 353 560 18.7% 23.3% 26 (29) Spirit AeroSystems Holdings (USA) 4,079 3,772 4,079 8.1% 303 406 7.4% 10.8% 3,492 8.7% 13.4% 13,610 3.4% 299,669 4.6% Fuselage Systems 2,004 13.9% 288 288 14.4% 16.4% Propulsion Systems 1,030 -0.2% 123 162 11.9% 15.7% Wing Systems 1,024 7.2% 21 100 2.0% 10.4% All other 21 -21.5% -1 0 -6.8% 1.1% Unallocated corporate and r&d -126 -144 27 (25) MTU Aero Engines (Germany) 3,630 3,986 3,630 -4.2% 343 363 9.5% 9.1% 2,328 14.7% 16.2% 7,665 1.7% 473,626 -5.8% Acquired 19.3% stake in Middle East Propulsion OEM: Commercial and Military 2,205 -3.5% Disposed of group of assets deriving from MTU Aero Engines North America – part MRO: Commercial Maintenance 1,471 -5.0% of the OEM segment – in May 2009 Other consolidated entities -45 28 (27) Saab (Sweden) 3,512 3,914 3,221 3.6% 180 25 5.6% 0.7% 1,984 9.1% 1.3% 13,159 -1.0% 244,775 4.6% Acquired remaining stake of TietoSaab Systems Defense and Security Solutions 1,267 2.7% 89 111 7.0% 7.8% (Security and Defense) in June 2009 Systems and Products 1,255 5.6% 50 115 3.9% 8.3% Acquired Airdrome Holdings in September 2008 Aeronautics 989 4.2% 1 -229 0.1% -20.7% Corporate and Eliminations -291 41 24 -14.0% -9.2% 29 (32) Hawker Beechcraft (USA) 3,199 3,547 3,199 -9.8% -712 140 -22.3% 4.0% 2,600 -27.4% 4.3% 7,200 -26.5% 444,236 22.8% 30 (33) Zodiac (France) 3,067 2,948 3,067 9.5% 347 345 11.3% 11.7% 2,641 13.1% 13.8% 17,477 -1.9% 175,491 10.7% Aerosafety & Technology 704 -1.3% 83 99 11.8% 13.2% Aircraft Systems 784 4.6% 100 82 12.7% 10.4% Cabin Interiors 1,579 18.0% 163 170 10.3% 12.1% Corporate 0 -7 31 (28) Alcoa (USA) 3,000 3,900 18,439 -31.5% -1,028 1,199 -5.6% 4.5% 33,058 -3.1% 3.9% 59,000 -32.2% 312,525 1.1% Aerospace 3,000 -23.1% 575 863 19.2% 22.1% Aerospace is a reported market segment, not an operating division 32 (30) Precision Castparts (USA) 2,991 3,607 5,487 -19.3% 1,503 1,585 27.4% 23.3% 6,767 22.2% 28.0% 18,100 -10.8% 303,127 -9.9% Acquired Carlton Forge works (seamless rolled rings for critical aerospace Aerospace 2,991 -17.1% applications) and Arcturus Manufacturing in September 2009 33 (35) Cobham (UK) 2,976 2,757 2,932 28.2% 447 238 15.2% 8.8% 2,399 18.6% 10.6% 12,044 -7.6% 243,460 38.8% Avionics and Surveillance 760 12.6% Defence Electronic Systems 1,362 64.9% Mission Systems 494 5.0% Aviation Services 360 4.1% Other activities 1 Interco -45 34 (34) Ishikawajima-Harima (Japan) 2,957 2,890 13,274 -10.5% 504 255 3.8% 1.9% 6,989 7.2% 4.3% Aero-Engines & Space Operations 2,957 -4.7% 75 110 2.5% 3.8% 35 (31) Israel Aerospace Industries (Israel ) 2,881 3,585 2,881 -19.6% 90 137 3.1% 3.8% 403 22.3% 42.2% 36 (36) Elbit Systems (Israel) 2,832 2,638 2,832 7.4% 263 249 9.3% 9.4% 1,832 14.3% 15.4% 11,238 3.3% 252,038 3.9% Acquired BVR Systems (development of training, simulations and debriefing

46 | Flight International | 14-20 September 2010 flightglobal.com TOP 100 special REPORT

Rank (08) Company (country) Aero sales ($m) Total sales ($m) operating result ($m) operating margin Capital roCE (%) Personnel sales per employee ($) Comments Division 2009 2008 2009 growth 2009 2008 2009 2008 employed 2009 2008 2009 headcount growth 2009 growth

flightglobal.com 14-20 September 2010 | Flight International | 47 TOP 100 special REPORT

Rank (08) Company (country) Aero sales ($m) Total sales ($m) operating result ($m) operating margin Capital roCE (%) Personnel sales per employee ($) Comments Division 2009 2008 2009 growth 2009 2008 2009 2008 employed 2009 2008 2009 headcount growth 2009 growth

Airborne Systems 717 13.0% systems for air, sea and ground forces) in November 2009 Land Systems 520 -25.7% C4ISR Systems 1,059 25.4% Electro-optics 406 20.6% Other 131 6.2% 37 (37) Avio (Italy) 2,367 2,420 2,367 2.9% 230 202 9.7% 8.4% 4,360 5.3% 4.4% 4,905 -3.7% 482,526 6.6% Aeroengines 1,910 5.1% 262 256 13.7% 13.4% Space 404 -4.6% 52 63 13.0% 14.1% AvioService 53 -9.1% 5 1 9.7% 1.7% Other activities -90 -47 38 (38) Hindustan Aeronautics (India) 2,337 2,368 2,337 10.0% 536 533 22.9% 22.5% 39 (44) GKN (UK) 2,318 1,859 6,969 -3.2% 201 373 2.9% 4.4% 4,405 4.6% 7.2% 38,200 -4.5% 182,427 1.3% Acquired Filton Aerostructures in January 2009 Aerospace 2,318 48.3% 264 195 11.4% 10.5% 40 (42) Kawasaki Heavy Industries (Japan) 2,018 1,994 12,535 -12.3% -14 286 -0.1% 2.1% 7,045 -0.2% 5.0% 32,297 388,112 Aerospace 2,018 -5.8% 19 -42 0.9% -2.1% 41 (41) B/E Aerospace (USA) 1,938 2,110 1,938 -8.2% 296 -36 15.3% -1.7% 2,504 11.8% -1.5% 5,500 -15.2% 352,309 8.3% Consumables Management 798 14.5% 151 -152 18.9% -21.8% Commercial Aircraft 911 -20.0% 121 78 13.3% 6.9% Business Jet 228 -16.7% 24 37 10.6% 13.6% 42 (45) Parker Hannifin (USA) 1,883 1,838 10,309 -15.1% 793 1,425 7.7% 11.7% 7,850 10.1% 17.4% 51,639 -16.3% 199,636 1.5% Aerospace 1,883 2.5% 262 251 13.9% 13.6% 43 (47) Vought Aircraft Industries (USA) 1,878 1,775 1,878 5.8% 160 147 8.5% 8.3% 819 19.6% 13.0% 5,900 -10.6% 318,271 16.9% Acquired by Triumph in June 2010 44 (39) Meggitt (UK) 1,794 2,157 1,794 -1.0% 363 320 20.2% 14.8% 4,543 8.0% 5.5% 7,204 -11.5% 249,088 11.9% Aerospace 1,162 -2.4% 344 428 29.6% 30.2% Sensing Systems 403 -3.6% 70 87 17.4% 17.4% Defence Systems 229 12.2% 32 35 13.9% 14.6% Exceptional items -83 -230 45 (43) Teledyne Technologies (USA) 1,765 1,893 1,765 -6.8% 166 189 9.4% 10.0% 1,140 14.6% 15.4% 8,100 217,926 Acquired assets of marine sensor product line and Electronics and Communications 1,232 -3.5% remaining 14.1% of Ocean Design Engineered Systems 347 -3.9% Aerospace Engines and Components 113 -33.9% Energy and Power Systems 73 -13.4% 46 (40) BBA Group (UK) 1,686 2,145 1,686 -6.5% 128 194 7.6% 9.1% 1,660 7.7% 8.2% 9,694 -8.7% 173,893 2.4% Flight Support Group 1,004 -8.8% 96 120 9.6% 9.2% Aftermarket Services and Systems 682 -2.9% 76 103 11.1% 12.3% Corporate -15 -20 Exceptional items -28 -9 47 (46) Eaton (USA) 1,602 1,811 11,873 -22.8% 444 1,255 3.7% 8.2% 13,593 3.3% 9.7% 70,000 169,614 Aerospace 1,602 -11.5% 245 283 15.3% 15.6% 48 (50) Ruag (Switzerland) 1,562 1,419 1,562 10.3% -104 53 -6.7% 3.7% 770 -13.6% 6.0% 7,534 12.7% 207,277 -2.1% Acquired space business unit of OC Oerlikon, Hungary’s MFS 2000 and 36% GEKE Schutztechnik 49 (48) Esterline (USA) 1,425 1,483 1,425 -3.9% 148 164 10.4% 11.1% 2,020 7.3% 10.2% 8,901 -8.2% 160,139 4.7% Acquired NMC (light weight fasteners) in December 2008 and Racal Acoustics Avionics & Control 673 10.0% 99 78 14.8% 12.7% Global (communication equipment for defence and avionics); divested Muirhead Sensors & Systems 340 -11.6% 34 43 10.1% 11.3% Aero and Traxsys Input Products Advanced Materials 413 -15.3% 54 79 13.0% 16.1% Corporate -39 -37 50 (49) CAE (Canada) 1,337 1,477 1,337 -8.2% 201 272 15.1% 18.4% 1,647 12.2% 17.2% 7,000 0.0% 190,978 -8.2% Acquired Bell Alliant’s Defense, Security and Aerospace division and Seaweed Systems (embedded graphic solutions for the military and aerospace market) Civil 629 -23.5% 109 159 17.3% 19.1% Acquired Sabena Flight Academy and Academia Aeronautica de Evora Military 708 11.7% 122 113 17.3% 17.5% Restructuring charge -30 51 (52) Triumph Group (USA) 1,295 1,240 1,295 4.4% 155 152 12.0% 12.2% 1,416 11.0% 11.8% 5,991 -2.3% 216,107 6.9% Acquired Vought Aircraft Industries in June 2010 Aerospace Systems 1,073 8.6% 170 168 15.9% 17.0% Aftermarket Services 225 -11.7% 11 11 4.9% 4.2% Other – corporate -4 -26 -27 708.1% 1034.6% 52 (51) Singapore Technologies Engineering (Singapore) 1,287 1,369 3,815 3.8% 349 379 9.2% 10.0% 2,615 13.4% 20.1% 20,000 178.9% 190,725 -62.8% Acquired Precision Products Singapore (aerospace casting and mould tools), 33% Aerospace 1,287 -3.4% 149 181 11.6% 13.2% stake in Singapore air shows and events 53 (53) Orbital Sciences (USA) 1,125 1,169 1,125 -3.7% 52 84 4.6% 7.2% 631 8.3% 14.2% 3,675 8.1% 306,203 -10.9%

48 | Flight International | 14-20 September 2010 flightglobal.com TOP 100 special REPORT

Rank (08) Company (country) Aero sales ($m) Total sales ($m) operating result ($m) operating margin Capital roCE (%) Personnel sales per employee ($) Comments Division 2009 2008 2009 growth 2009 2008 2009 2008 employed 2009 2008 2009 headcount growth 2009 growth

flightglobal.com 14-20 September 2010 | Flight International | 49 TOP 100 special REPORT

Rank (08) Company (country) Aero sales ($m) Total sales ($m) operating result ($m) operating margin Capital roCE (%) Personnel sales per employee ($) Comments Division 2009 2008 2009 growth 2009 2008 2009 2008 employed 2009 2008 2009 headcount growth 2009 growth

Launch Vehicles and Advanced Programs 440 -3.1% 14 34 3.2% 7.4% Satellites and Related Space Systems 352 -16.6% 27 32 7.7% 7.6% Advanced Space Programs 345 15.6% 11 19 3.1% 6.4% 54 (66) Kongsberg (Norway) 1,089 789 2,194 25.0% 201 184 9.1% 9.4% 897 22.4% 23.3% 5,423 3.4% 404,534 20.8% Defence Systems 434 33.1% 15 13 3.4% 3.7% Protech Systems 655 71.9% 70 53 10.7% 12.5% Other activities 48 -47.4% -11 -8 -22.8% -7.5% 55 (54) Panasonic (Japan) 1,068 1,136 82,950 -14.4% -4,087 4,327 -4.9% 4.8% 47,031 -8.7% 8.9% 292,250 -4.4% 283,832 -10.4% Panasonic Avionics 56 (56) Volvo (Sweden) 1,020 1,156 28,537 -28.3% -2,223 2,404 -7.8% 5.2% 27,403 -8.1% 7.3% 90,210 -11.0% 316,335 -19.2% Aero 1,020 2.3% 7 54 0.6% 4.7% 57 (61) Ultra Electronics (UK) 1,015 956 1,015 26.3% 152 143 14.9% 15.0% 475 31.9% 20.2% Acquired Tisys (airport IT systems) and Xerion (digital glass cockpit displays) Aircraft and Vehicle Systems 250 19.6% Information and Power Systems 348 30.5% Tactical and Sonar Systems 455 26.4% 58 (65) Fuji Heavy Industries (Japan) 996 805 15,261 -1.2% 292 -58 1.9% -0.4% 7,224 4.0% -1.0% Aerospace 996 15.3% 51 16 5.2% 1.9% 59 (64) Loral Space & Communications (USA) 993 869 993 14.3% 20 -6 2.0% -0.7% 812 2.5% -0.9% 2,400 4.3% 413,917 9.5% Satellite Services 0 0 0 Satellite Manufacturing 993 14.3% 20 -6 2.0% -0.7% 60 (57) Liebherr (Switzerland) 980 1,021 9,679 -17.2% 32,091 301,622 Aerospace SAS 951 61 (59) Indra (Spain) 948 1,001 3,494 5.6% 397 396 11.4% 11.4% 1,632 24.3% 28.9% 26,175 5.5% 133,500 0.1% Defence & Security 948 -0.3% Transport & Traffic 692 14.7% 62 (62) Moog (USA) 938 926 1,849 -2.8% 150 206 8.1% 10.8% 407 36.8% 11.1% 10,005 13.1% 184,799 -14.1% Acquired the GE Actuation Division and Fernau Avionics Aircraft Controls 663 -1.4% 52 55 7.9% 8.2% Space & Defense controls 275 8.4% 40 29 14.6% 11.6% 63 (67) Korea Aerospace Industries (South Korea) 931 779 931 19.4% 43 68 4.6% 8.7% 723 6.0% 11.0% 2,788 333,789 64 (55) Sequa (USA) 900 1,132 1,500 -36.7% Aerospace 65 (58) Hexcel (USA) 853 1,020 1,108 -16.3% 104 131 9.4% 9.9% 1,045 9.9% 13.3% Commercial Aerospace 554 -22.5% Space and Defence 299 -1.8% 66 (63) Stork (Netherlands) 837 874 2,260 -8.3% 24 132 1.1% 5.1% 2,190 1.1% 4.5% 13,145 23.9% 171,960 -25.9% Fokker Aerospace 837 0.8% 6 38 0.7% 4.4% 67 (71) GenCorp (USA) 787 726 795 7.2% 72 26 9.1% 3.5% 674 10.7% 3.4% 3,071 0.5% 259,004 6.7% Aerospace and Defence 787 8.5% 84 78 10.7% 10.8% 68 (75) Chemring (UK) 786 686 786 42.3% 160 144 20.4% 20.9% 755 21.2% 17.0% 3,349 11.6% 234,676 27.4% 69 (72) TransDigm Group (USA) 762 714 762 6.7% 335 299 44.0% 41.9% 2,354 14.2% 13.8% 2,000 -4.8% 381,000 12.1% Acquired assets of Dukes (valves), GE Aviation’s starter generation and ignition system business, Actuant’s power control business and Woodward Governor’s valve business 70 (91) Woodward Governor (USA) 701 415 1,430 13.7% 153 180 10.7% 14.3% 1,434 10.7% 23.7% 5,660 -2.8% 252,668 17.0% Acquisitions of MPC Products and HR Textron Aerospace and Defence market 701 68.8% 71 (70) Ball (USA) 689 747 7,345 -2.9% 655 591 8.9% 7.8% 5,060 12.9% 13.1% 14,100 35.6% 520,922 -28.4% Aerospace and technologies 689 -7.7% 61 76 8.9% 10.2% 72 (73) ITP (Spain) 666 707 666 -0.9% 44 61 6.6% 8.6% 795 5.6% 8.5% 2,682 -3.3% 248,395 2.6% Acquired aerospace and manufacturing branch of Alstom power in Dec 2008 73 (85) FLIR Systems (USA) 655 569 1,147 6.5% 347 284 30.3% 26.4% 1,308 26.6% 26.6% 2,079 7.0% 551,708 -0.5% In 2009, acquired outstanding stock of Salvador Imaging, OmniTech Partners and Government Systems 655 15.1% 286 234 43.7% 41.1% certain assets of Infrared Korea 74 (79) Amphenol (USA) 649 615 2,820 -12.9% 489 632 17.3% 19.5% 2,716 18.0% 26.8% 32,000 6.7% 88,125 -18.3% Aerospace 649 75 (74) Umeco (UK) 638 694 638 -0.5% 49 59 7.7% 8.4% 518 9.5% 9.5% 1,549 -0.5% 411,825 -0.8% Acquired IPM in December 2008 Supply Chain 366 3.6% 23 19 6.4% 4.9% Composites 273 -5.3% 26 40 9.5% 12.7% 76 (60) Latécoère (France) 625 1,001 625 -34.3% -143 47 -22.9% 4.7% 313 -45.7% 5.2% 77 (81) Magellan Aerospace (Canada) 601 610 601 0.0% 39 32 6.5% 5.3% 352 11.1% 11.5% Acquired outstanding shares of Verdict Aerospace Components in February 2008 78 (76) Aeroflex (USA) 599 605 599 -0.9% -19 -69 -3.2% -11.5% 1,214 -1.6% -5.2% 2,700 221,963 Acquired VI Technology (independent automatic test systems) in March 2009 and Airflyte Electronics (custom engineered slip rings)

50 | Flight International | 14-20 September 2010 flightglobal.com TOP 100 special REPORT

Rank (08) Company (country) Aero sales ($m) Total sales ($m) operating result ($m) operating margin Capital roCE (%) Personnel sales per employee ($) Comments Division 2009 2008 2009 growth 2009 2008 2009 2008 employed 2009 2008 2009 headcount growth 2009 growth

flightglobal.com 14-20 September 2010 | Flight International | 51 TOP 100 special REPORT

Rank (08) Company (country) Aero sales ($m) Total sales ($m) operating result ($m) operating margin Capital roCE (%) Personnel sales per employee ($) Comments Division 2009 2008 2009 growth 2009 2008 2009 2008 employed 2009 2008 2009 headcount growth 2009 growth

79 (77) Crane (USA) 590 639 2,196 -15.7% 208 197 9.5% 7.6% 2,246 9.3% 8.8% 10,000 -11.5% 219,600 -4.7% Aerospace & Electronics 590 -7.6% 96 54 16.3% 8.5% 80 (80) Pilatus (Switzerland) 571 610 571 -6.2% 72 51 12.6% 8.3% 1,330 -2.4% 429,357 -3.9% 81 (83) Heico (USA) 539 583 508 -12.8% 86 106 16.9% 18.2% 667 12.9% 17.8% Acquired VPT (power converters and electronic products for A&D industries) and Flight Support Group 395 -9.5% 60 81 15.2% 18.6% the Secom product of Dukane (aircraft and marine underwater locator beacons) Electronic Technologies Group 143 -1.8% 40 39 27.8% 26.5% 82 (87) SKF (Sweden) 514 480 7,348 -11.3% 419 1,169 5.7% 12.2% 4,788 8.7% 18.4% 41,172 -8.1% 178,472 -3.4% Acquired remaining 49% share of SKF Polyseal in April 2009 Aerospace 514 24.2% 83 (88) Kaman (USA) 501 477 1,146 -8.6% 54 65 4.7% 5.2% 619 8.7% 11.2% 4,032 -6.1% 284,276 -2.6% Aerospace 501 5.0% 75 62 15.0% 12.9% 84 (84) Senior (UK) 498 580 842 -4.0% 95 111 11.3% 10.6% 566 16.8% 15.4% 4,764 -12.7% 176,825 10.0% Aerospace 498 2.0% 61 82 12.2% 14.2% 85 (78) PAIG (UK) 493 633 493 -7.4% 86 (69) Firth Rixson (UK) 490 753 696 -20.9% 92 176 13.2% 16.8% 1,426 6.5% 8.8% 1,500 -22.6% 463,750 2.1% 87 (82) LISI (France) 486 598 967 -17.7% 48 145 4.9% 11.7% 815 5.8% 16.2% 6,596 -6.7% 146,535 -11.8% Aerospace 486 -14.5% 66 123 13.6% 20.6% 88 (89) Curtiss-Wright (USA) 437 445 1,810 -1.1% 169 197 9.4% 10.7% 1,618 10.5% 12.4% 7,600 -4.6% 238,118 3.7% Acquired Skyquest (supplier of aircraft video displays Motion Control (aerospace component) 354 2.7% and airborne video/radar converters) Metal Treatment (aerospace component) 83 -16.8% 89 (93) Ducommun (USA) 431 404 431 6.7% 16 18 3.8% 4.5% 276 5.9% 6.6% 1,872 -8.6% 230,075 16.7% Acquired DynaBil Industries in December 2008 (provider of titanium and aluminium structural components for commerical and military aerospace applications) 90 (90) JAMCO (Japan) 430 415 430 -3.7% 10 8 2.4% 1.8% 297 3.4% 2.7% 2,008 213,962 91 (94) Ladish (USA) 340 363 425 -9.6% 52 40 12.3% 8.4% 424 12.3% 9.4% 1,637 259,621 Aerospace Components 102 -17.7% Jet Engines 238 -0.4% 92 (96) Asco Aerospace (Belgium) 316 345 316 -3.8% 93 (100) Diehl Aerospace (Germany) 286 301 286 0.0% 1,200 0.0% 238,704 0.0% 94 (92) Doncasters (UK) 284 411 1,133 -14.9% -84 68 -7.4% 4.3% 1,711 -4.9% 2.8% 4,957 -19.8% 228,653 6.1% Aerospace 284 -17.6% 95 (new) Denel (South Africa) 274 245 465 2.8% -55 -28 -11.8% -6.1% 180 -30.5% -11.3% 5,067 -30.4% 91,698 47.6% Aerospace 274 14.2% -53 -27 -19.4% -10.9% 96 (new) Hampson Industries (UK) 264 403 278 -30.5% 52 -5 18.6% -1.2% 601 8.6% -0.8% 1,692 -23.3% 164,358 -9.5% Disposal of non-core machining businesses in August 2009 Aerospace Components & Structures 74 -45.8% 6 -21 8.4% -14.2% Aerospace Composites & Transparencies 189 -19.5% 39 59 20.7% 23.4% 97 (new) Heroux Devtek (Canada) 261 266 281 -5.1% 24 31 8.5% 10.2% 281 8.5% 11.2% Acquired Eagle Tool (precision machined components for military aerospace) Landing Gear 171 2.2% Aerostructure 89 -5.4% Aircraft Engine Components 1 0.0% 98 (99) Garmin (USA) 246 323 2,946 -15.7% 786 862 26.7% 24.7% 3,142 25.0% 35.1% 8,437 -5.4% 349,176 -10.9% Aviation 246 -24.0% 58 117 23.7% 36.3% 99 (new) Martin-Baker (UK) 235 206 235 23.3% 53 30 22.6% 14.6% 66 80.1% 54.0% 100 (new) Terma (Denmark) 208 208 208 5.3% 0 14 0.2% 7.0% 131 0.3% 10.8% 1,261 6.6% 164,857 *Excludes currency impacts. SOURCE: PricewaterhouseCoopers

DATA SOURCE THE TOP 100 was compiled by aero- warranty (whether express or implied) is been ranked by their aerospace sales in aerospace activities. Satellite services space experts at Pricewaterhouse given by PwC as to the accuracy of this 2009, calculated from those divisions have been excluded wherever possible, Coopers. The information used in pre- information. that operate primarily in the industry. as have companies and divisions that paring this report has been obtained ■ COMPANY/DIVISIONS The top line Sectors involved with aircraft, aeroen- derive more than 50% of their revenues solely from company annual reports, of the financial figures refers to consoli- gines, avionics, missiles, space and from services such as leasing. public filings and other publicly available dated results for the overall group, in- aerostructures are largely straightfor- Where acquisitions were made within information. PwC has not sought to cluding non-aerospace businesses. The ward, but telecommunications, network- the accounting period, pro-forma ac- establish the reliability of this informa- divisional figures are for those busi- centric, and C4I systems and some counts have been used for the tion and has not verified such informa- nesses that are fully or largely con- overhaul operations are included only 12-month consolidated performance. tion. Accordingly, no representation or cerned with aerospace. Groups have where these are largely concerned with Joint ventures have been included in the

52 | Flight International | 14-20 September 2010 flightglobal.com TOP 100 special REPORT

Rank (08) Company (country) Aero sales ($m) Total sales ($m) operating result ($m) operating margin Capital roCE (%) Personnel sales per employee ($) Comments Division 2009 2008 2009 growth 2009 2008 2009 2008 employed 2009 2008 2009 headcount growth 2009 growth

financials. Inter-segment sales are ex- having any aerospace content. In such unnecessary distortions. business’s operational performance. cluded from operating results and profits cases 2008 revenues have also been ■ COUNTRY All companies have been Discontinued or discontinuing opera- for divisions where possible. However, restated. listed by country of headquarters or tions are included where they fall in when not possible, each divisional result ■ EXCHANGE RATES An average ex- incorporation, independent of produc- fiscal year 2009 for that business. has been presented inclusive of inter- change rate for the period 1 January tion or operating territories. ■ RETURN ON CAPITAL EMPLOYED division sales, resulting in aerospace 2009 to 31 December 2009 has been ■ OPERATING RESULTS Generally tak- (ROCE) Calculated as earnings before revenues greater than group sales. used for all non-US companies, regard- en as the profit (or loss) before interest, interest expense, taxes, unusual items Where applicable, divisions of some less of fiscal year definitions. The per- tax and exceptional items and after and minority interests divided by year- companies have been reappraised and centage changes in financial figures are deduction of depreciation. The measure end total assets less year-end non- removed as they are assessed as not given in local currency terms to avoid gives a generally accepted guide to a interest-bearing current liabilities. ■

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