Tag Archives: Aeronautical

Aeronautical industry, always dominate the same

Aeronautical industry has traditionally three main players: Boeing and Lockheed Martin in the US and EADS in Europe. Specifically, Boeing and EADS-Airbus are the main competitors in the civil sector, while Lockheed Martin and the military branch of EADS are the main competitors in the defense sector.

In the commercial side, there is a great development because of the rise of Asian and Middle East companies (mainly, China, Qatar and Emirates) as low cost companies (more in Europe). Both Boeing and EADS-Airbus have launched in the last years new projects for bigger aircrafts.

In defense, the increase of new powers has discovered new competitors for Lockheed Martin and EADS. One of the most important is Brazil, with Embraer and Helibras. This country is the biggest producer of helicopters and the trend in aerospace is very powerful.

Some general trends of the sector were exposed by Deloitte and KPMG in the last months.

But what is happening to the big three in the markets? Let’s have a look in T-Advisor.

Aeronautical: Boeing figures in T-Advisor

Boeing increased its revenues a 6% in 2013, till US$ 86,623 million. The net earnings also jumped an 18%, till US$ 4,285 million (US$ 5,96 per share).

Aeronautical: EADS figures in T-Advisor

EADS improved its sales a 5%, till €59,256 million. The net income in 2013 was €1,465 million, a 22% more (€1,85 per share).

Aeronautical: Lockheed Martin figures in T-Advisor

Lockheed Martin suffered a decrease in the sales (-4%), till US$45,358 million. However, the net income improved an 8.5%, till US$2,981 million (US$9.13 per share).

The comparison in the main date made by T-Advisor has the following results:

Performance

YTD

Volatility

YTD

Score

Liquidity

VaR

1 week

Boeing

-6.28%

21.43%

5.64

10

-4.28%

EADS

-8.03%

24.54%

6.25

9

-6.10%

Lockheed Martin

7.80%

18.61%

5.57

10

-3.82%

Only Lockheed Martin has a positive development in 2014 against its rivals. The score is medium, what shows the instability in some of the considered ratios. VaR also is quite high for EADS, a measure linked with the volatility, which is quite high for all. Investors don’t seem to be very motivated, although the expectations for the sector are right, but it will be interesting to watch the emerging markets in this industry and the role that these new competitors will play.