U.S.-Based A&D Companies' Earning More than European Ones

U.S.-based A&D companies' revenues grew faster in 2010 than their European counterparts with U.S. revenues growing 1.9 percent in 2010 vs. 0.9 percent growth among European companies. Reported operating profit increased by 24.9 percent thanks primarily to nominal one-time charges of $1.7 billion in 2010 compared to $10.5 billion in 2009. In the absence of such charges operating profit increased by 4.5 percent in 2010. Core operating margins of 8.9 percent represent an increase of 2.9 percent or 26 basis points (bps) although reported operating margins increased by 23.0 percent or 162 bps thanks to the virtual absence of large non-recurring charges to earnings in 2010 relative to 2009. According to Deloitte's "2010 Global Aerospace & Defense Industry Performance Wrap-up" report, released today, underscores the industry's second consecutive year of flat financial performance with revenues barely keeping pace with inflation. The report, which analyzes the financial performance of global aerospace and defense (A&D) industry companies with revenues exceeding $400 million, also shows that the industry experienced comparatively flat to modest increases in core operating profit (with non-recurring charges excluded).