Aerospace & Defense: Some Significant Improvements

After 2009 the aerospace and defense sector marked significant improvements in its performance. In 2011 it had the highest surge and today, even though it kept its increasing value, the industry shows signs of slowing its growth. Last year’s revenues were $1160 billion, representing a CAGR rate of nearly 4% for the last several years. Europe, which is one of the most mature markets, rose with 4% and reached a value of $265 billion, while the Asian-Pacific one, which is also reaching maturity, grew by a decreased number of 6.7% with a value of $259 billion.

Because of its long-term contracts and lucrative clients, the defense sector was the most profitable segment of the industry with 55.9% share. Its $789 billion were focused most in countries such as the USA, China and Russia. Their CAGR is expected to slow down to 1.8% by 2018, with increasing investments in other sectors. Boeing is a good example that. Even though the sector slows down, its stock surged with $40, representing a 30% increase in the course of last year. Increased dividend yields made investors happy and analysts wondering about its biggest rival – Airbus, which also managed to increase its value, reaching a share price of $18.

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