2014 Global aerospace and defense sector financial performance study

Deloitte Touche Tohmatsu Limited’s Global Manufacturing Industry group 2014 Global aerospace and defense sector financial performance study is an assessment of the 2013 financial performance of 100 major global aerospace and defense (A&D) companies using information from public company filings and press releases. The key financial indicators studied include sales revenue, operating earnings, and operating margin. The results presented in this study reveal important observations about the overall global A&D industry.

Key findings from the report

• Global aerospace and defense sector growth slowed down in 2013, with the U.S defense subsector slowdown a key contributor
• Top 10 global A&D companies rankings have changed from prior year, reflecting commercial aerospace growth
• While the A&D sector becomes more global, U.S. companies continue to dominate. Europe is gaining momentum in revenue growth, but losing some ground in profitability
• Profitability is improving across the global A&D industry
• A&D sector share prices outpaced global equity indices

The infographic gives a summary of key financial indicators. It talks about the average performance of A&D companies in 2013:

• Revenue: US$706 billion
• Operating earnings: US$63 billion
• Operating margin: 8.9%
• Return on invested capital: 17.0%
• Free cash flow: 5.1%
• Number of A&D employees: 2,042,252