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Deloitte Releases 2009 Study of Aerospace & Defense Industry Financial Performance

Study Shows Resilience Despite Recession of 2009

WASHINGTON, May 11 — (PRNewswire) — Deloitte's study of the global aerospace & defense (A&D) industry financial performance for 2009, released today, evaluated the 2009 financial performance of the 91 global A&D companies with revenues exceeding $500 million and found that despite recession of 2009 the A&D companies in this study demonstrated resilience.

"Despite the economic recession of 2009, these 91 global A&D companies faced financial challenges head-on and experienced less decline than companies in many other sectors, demonstrating the resilience of the industry," said Tom Captain, vice chairman, and global and United States A&D sector leader for Deloitte LLP.  "In particular, the need for global defense, security and humanitarian aid as well as the long term growing demand for commercial airline travel remains strong, particularly in growing non-Western economies."

Overall, for these companies, global A&D revenue in 2009 remained essentially flat, with a slight 1.3 percent increase over 2008 to $635 billion.  However, their operating earnings decreased 15.3 percent to $47.9 billion while their operating margins fell by 16.4 percent to 7.5 percent.  The study found that if it were not for loss provisions or impairment charges at Boeing, EADS and BAE Systems collectively, profits for these companies would have been essentially flat, again demonstrating the underlying strength of the industry. A&D companies continue to face the challenges of moderating defense budgets, poor program performance, foreign exchange rate volatility and reduced credit availability.

"Flat A&D revenue and profits in 2009 for these companies are giving way to a global recovery," said Captain.  "But the timing and degree of the upswing will vary by global region, and the effects on individual A&D product sub-sectors will likely be uneven."

Other key findings from the 2009 A&D industry performance study are as follows:


To access the Deloitte study in full, please visit: http://www.deloitte.com/us/aerospacedefense/2009globalwrapup.

About Deloitte

As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

SOURCE Deloitte

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