PwC Top 100 Aerospace companies – Industry returns to profitable growth
Published at 00:01 AM on 24 September 2013
Aerospace profits for the Top 100 companies were up again this year, growing 6% over 2011, according to analysis of 2012 annual results. With average margins of 9.4%, the industry is levelling off at a higher level of profitability than a decade ago, reflecting the rewards of cost controls brought in during the recession. This increased profitability also reflects consolidation in the industry enabling a growing number of smaller but more profitable new entrants to join the ranks of the Top 100.
This is the 16th year that experts from PwC UK have compiled the data, analysing trends, ranking growth and profit data right across the Aerospace sector. It is the first year that Chinese and Russian companies have joined the rankings, with AVIC of China making both the revenue Top 40 and growth Top 10.
Once again, Boeing has retained the crown in PwC’s Top 100 Aerospace company listings as the largest overall business in the industry. Revenue growth of 35% at Boeing Commercial Airplanes has seen the company double its lead over runner up EADS.
However, measuring success in profit and growth terms, TransDigm takes the top spots achieving 41% aerospace profit margins, and 41% revenue growth in 2012. TransDigm demonstrates two of the key drivers of success in the industry – a focus on niche technology and a portfolio of sole supplier relationships. As key growth programmes now reach full production ramp up, we are seeing strong growth in those companies with positions on these. Aciturri of Italy is one such company, entering the Top 100 at number 99.
Overall year on year, commercial aircraft Original Equipment Manufacturers grew at 22% including a return to growth for the business aircraft manufacturers. Defence aircraft OEMs also returned from revenue declines, with an average growth of 2% in the year. Aircraft engine manufacturers have seen a 10% growth in revenue, with UK firm Rolls-Royce recording a 12% increase.
Commenting on the results, Anna Sargeant, Director in PwC’s Aerospace Strategy team, said:
"The results of this year’s Top 100 rankings reflect an industry returning to robust health, reaping the rewards of strong and disciplined management over the past decade. Strong demand for commercial aviation is buoyed by economic growth in Asia, the Middle East, and Latin America. Whilst the outlook for defence aerospace remains uncertain, a return to modest growth for defence aerospace OEMs in 2012 demonstrates the resilience of the industry.”
Top 10 fastest growing
Top 10 most profitable
Top 10 by Aerospace revenue
2. TransDigm Group
7. Precision Castparts
1. TransDigm Group
2. FLIR Systems Inc
3. B/E Aerospace
6. Martin Baker
7. Hindustan Aeronautics
3. Lockheed Martin
4. General Dynamics
6. Northrop Grumman
- PwC will publish these findings on 24 September with full listings available online.A full review will also feature in Flight International magazine. For more information on the results, or to arrange interviews, please contact Lucy in the press office on 0207 212 3205 or 0780 803 5503, or email lucy.bishop @uk.pwc.com.
- The information used in preparing this report was obtained solely from company Annual Reports, public filings and other publicly available information. Groups have been ranked by their aerospace sales in 2012, calculated from those divisions that operate primarily in the industry (aircraft, aeroengines, avionics, missiles, space and aerostructures). Telecommunications, network centric and C4I systems and some overhaul operations are included only where these are largely concerned with aerospace activities.
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