Defense Industry Profitability Gains in 2010

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Report Summary:

With defense budgets being cut, the defense industry was in the early stages of a downwards cycle in 2009 as growth trends were reversed. While 2010 continued to be a challenging year, defense industry revenues did manage to reverse a downward trend. Year-on-year industry revenues increased 1% in 2010 versus an 11% decline over the 2008-2009 timeframe. Profit margins improved 59% in 2010, reversing a 49% drop in profitability for in 2009. Challenges remain for the defense industry and Strategy Analytics predicts a steady recovery for the industry with revenues improving at a conservative rate in 2011.

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