Prospects For Commercial Aerospace Are Looking Up, But Are More Uncertain For Defense Jun 11

Standard & Poors, June 2011

Abstract
The fortunes of the commercial aerospace industry and the defense business have not always aligned, and the gradual, uneven global economic recovery is unlikely to change that. Economic expansion should continue to benefit the credit quality of commercial aerospace companies. High oil prices encourage airlines to add new, more fuel-efficient planes to their fleets, even as rising fuel costs hurt airline profits. In contrast, the financial performance of defense companies may weaken thanks to their dependence on government spending. Although we believe the immediate prospects for the defense sector remain satisfactory, very high deficits in the U.S. and other countries will likely lead to slow future growth or cuts in military spending. Plane makers are benefiting from a rebound in...

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Research Type: Commentary
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- Boeing Co.
- GenCorp Inc.
- General Dynamics Corp.
- Goodrich Corp.
- Litton Industries Inc.
- Lockheed Corp.
- Martin Marietta Technologies Inc.
- McDonnell Douglas Corp.
- Boeing Capital Corp.
- Moog Inc.
- Northrop Corp.
- Raytheon Co.
- Sundstrand Corp.
- Northrop Grumman Systems Corp.
- Textron Inc.
- Tracor Inc.
- United Technologies Corp.
- ITT Corp.
- Honeywell International Inc.
- Ducommun Inc.
- Hexcel Corp.
- BAE Systems PLC
- Finmeccanica SpA
- European Aeronautic Defence and Space Co. N.V.
- AAR Corp.
- Thales S.A.
- K&F Industries Inc.
- Bombardier Inc.
- Orbital Sciences Corp.
- BE Aerospace Inc.
- Sabreliner Corp.
- Alliant Techsystems Inc.
- Lockheed Martin Corp.
- Northrop Grumman Corp.
- Sheraton Holding Corp.
- Mercury Air Group, Inc.
- Cordant Technologies Inc.
- Derlan Industries Ltd.
- L-3 Communications Corp.
- Argo-Tech Corp.
- United Defense Industries Inc.
- Science Applications International Corp.
- HEICO Corp.
- Precision Castparts Corp.
- Kellstrom Industries, Inc.
- Compass Aerospace Corp.
- Pacific Aerospace & Electronics Inc.
- DeCrane Aerospace Inc.
- Singapore Technologies Engineering Ltd.
- TransDigm Inc.
- Rolls-Royce PLC
- Dunlop Standard Aerospace Holdings PLC
- Veridian Corp.
- Israel Aerospace Industries Ltd.
- Vought Aircraft Industries Inc.
- Integrated Defense Technologies Inc.
- L-3 Communications Holdings Inc.
- Rockwell Collins Inc.
- DRS Technologies Inc.
- Aviall Inc.
- Britax Group PLC
- Veridian Corp
- Esterline Technologies Corp.
- Armor Holdings Inc.
- Avio Holding SpA
- MTU Aero Engines GmbH
- Alion Science and Technology Corp.
- Heckler & Koch GmbH
- Ceradyne Inc.
- Standard Aero Ltd.
- DynCorp International LLC
- K&F Parent Inc.
- Aero Invest 1 S.A.
- Spirit AeroSystems Inc.
- MTU Aero Engines Holding AG
- MTU Aero Engines Investment GmbH
- GeoEye Inc.
- ORBIMAGE Inc.
- Embraer S.A.
- Mecachrome International Inc.
- Hawker Beechcraft Inc.
- Wesco Aircraft Holdings Inc.
- DAE Aviation Holdings Inc.
- Hunter Defense Technologies Inc.
- Colt Defense LLC
- JSC SP Severnaya Verf
- INVAP S.E.
- DigitalGlobe Inc.
- Triumph Group Inc.
- TASC Inc.
- Kratos Defense & Security Solutions Inc.
- DynCorp International Inc.
- SI Organization Inc.
- HDT Worldwide LLC
- Huntington Ingalls Industries Inc.
- Etablissement Public d'Amenagement de la Defense Seine Arche
- API Technologies Corp.

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