Industry Economic And Ratings Outlook: Defense Budget Uncertainty Is Increasing, But Commercial Aerospace Is Still Going Strong Jul 12

Standard & Poors, July 2012

Abstract
The commercial aerospace and defense sectors continue to face much different prospects. Demand for new aircraft continues to propel the commercial aerospace sector. The introduction of new, more-fuel-efficient models has prompted large orders from several major airlines. Still, manufacturers must navigate through headwinds of uneven global economic growth, high fuel prices, and possible reduced availability of aircraft financing. The defense sector, on the other hand, will likely face greater turbulence amid weaker demand. Standard & Poor's Ratings Services expects the U.S. defense budget to be flat or decline in the next several years because of efforts to reduce the huge U.S. federal budget deficit, the wind-down of operations in Afghanistan, and proposed changes to U.S. military strategy. Austerity measures will...

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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.
- Moog Inc.
- Northrop Corp.
- Raytheon Co.
- Sundstrand Corp.
- Northrop Grumman Systems Corp.
- Textron Inc.
- Tracor Inc.
- United Technologies 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.
- 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.
- 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.
- 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
- Esterline Technologies Corp.
- Armor Holdings Inc.
- Avio Holding SpA
- MTU Aero Engines GmbH
- Alion Science and Technology Corp.
- Heckler & Koch GmbH
- Ceradyne Inc.
- 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.
- Hawker Beechcraft Inc.
- Wesco Aircraft Holdings Inc.
- DAE Aviation Holdings Inc.
- Hunter Defense Technologies Inc.
- Colt Defense LLC
- JSC SP Severnaya Verf
- 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
- Sotera Defense Solutions Inc.
- API Technologies Corp.
- Exelis Inc.

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