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First Quarter Defense Industry Financials Paint Bleak Picture

by Asif Anwar | 5月 22, 2012

The Advanced Defense Systems (ADS) service has just released, “Defense Electronics Industry Review: April 2012,” covering defense industry news including business events, product announcements, milestones and contract activity for the month of April.

With budget cuts continuing to threaten the outlook for the defense industry, a snapshot of some of the financials, from companies including General Dynamics, Lockheed Martin and United Technologies released in April, comparing fourth quarter 2011 revenues with revenues achieved in the first quarter of 2012 shows negative quarterly growth with an average decline of 9 percent. On a positive note, the companies considered in this snapshot all achieved positive net income for the quarter. The challenge will be maintaining profitability especially if quarterly revenues continue on the same trend.

On the other hand, contract activity across platforms, systems and component technologies appeared to be robust. Examples included Textron winning the competitive MEUAS (Mid-Endurance Unmanned Aircraft Systems) II award and BAE Systems upgrading Royal Saudi Air Force F-15S electronic warfare capabilities.

Other highlights in April included the continuing development of GaN technology capabilities for use in military systems leading to contract awards to Raytheon, Rockwell Collins and TriQuint. ELTA Systems successfully demonstrating its new wideband LTE Tactical Communication Network, the TAC4G, while Herley Industries received an order for the production and supply of specialty microwave products for a new missile platform.

Clients of the ADS service can read the full report here

Also, don’t miss my monthly column in the Microwave Journal’s Military Microwaves.

See Defence iQ for more analysis on the defense industry, related news and event.

Asif

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