2011 Global Aerospace & Defence (A&D) Industry performance
Examines the widening gap between the commercial and defence sectors
Despite uncertainty in the defence sector, the global A&D industry grew to US$681 billion in 2011, a sluggish revenue gain of 2.3 percent compared to 2.5 percent in 2010.
Reported operating earnings for the industry decreased 3.1 percent, as did reported operating margins (down 5.3 percent), free cash flow (down 13.3 percent), and reported operating earnings per employee (down 5.2 percent). On the positive side, book to bill (BTB) ratio, an indicator of future revenue growth, increased 17.4 percent, primarily as a result of higher sales of new fuel-efficient commercial aircraft.
The financial performance differences widened between the commercial and defence segments in 2011: commercial revenues grew 10.1 percent while defence revenues declined by 3.3 percent. Factors contributing to the growth of commercial revenues were record production levels of large commercial aircraft and increases in demand for aircraft services.
Regionally, the financial performance differences between A&D companies based in Europe and the United States continue to diverge in 2011. The European A&D industry grew less than one percent while the U.S. industry achieved 3.3 percent revenue growth.
For a full analysis of the A&D Industry’s performance in 2011, including the supplier sector, please download the full report '2011 Global Aerospace & Defence Industry performance wrap up'.