In this issue:
It is hard to believe that another six months have already passed by and that only a few weeks remain to the Farnborough International Airshow in July. We are certainly looking forward to the airshow and to seeing a large number of Quebec and Canadian aerospace companies there.
It is an important time for the Canadian Aerospace Industry to share their views on the future of the industry. The Aerospace Review, mandated by Government of Canada, is currently in progress and has many industry leaders participating in round table discussions, work groups and preparing submissions. We have joined the conversation to support the industry by bringing a global perspective on aerospace issues and trends to the Secretariat and Advisory Council.
During the C2 MTL conference on May 23rd, we hosted a workshop to explore "creative" answers to commercial questions. We assembled a group of industry members from SMEs, financial community, associations, services and government to brainstorm on the topic "Aerospace integrators – Are they the weakest link?". We collectively came up with some new ideas to an ongoing issue. Watch for more details as this industry interest group will be communicating more broadly. If you want to join in, please contact us for more information.
During 2011 the global A&D industry achieved record results in terms of revenues and profits. The commercial aerospace industry is soaring with record backlogs and no sign of a "bubble". Defence faces some challenges, but is well positioned to respond to these challenges so long as policy makers avoid sequestration in the U.S. We expect that 2012 should be another strong year for the industry and possibly another record year.
In summary, it seems to be a very busy time for the A&D industry with record backlogs and overall growth in the commercial industry. We look forward to seeing you at the Farnborough Airshow, and if we miss you, we would like to wish you a wonderful summer. We hope that you summer holidays with family and friends are enjoyable.
Mario Longpré, CA, CPA
PwC | Partner, Canadian Aerospace & Defence Leader
T : +1 514 205 5065
Aerospace and defence industry delivers a second consecutive year of record results in terms of revenues and profits
The A&D industry delivered its best year ever in 2011 on the strength of a surging commercial aviation market that more than offset a soft defence performance. For 2011 the top 100 A&D companies reported $677 billion in revenue and $60.0 billion in operating profit, setting records. Revenue was higher by 5% compared with 2010, while operating profit was up 2% over 2010. Operating margin dropped 27 basis points to 8.86%. The mood in commercial aerospace is described by industry leaders as optimistic. Air traffic is strong and steady, driving the lucrative aftermarket business; the industry delivered a record number of large aircraft and the orders continue, driving record backlog — more than eight years — at current production rates.
Join Aviation Week and PwC for a complimentary webinar on how the industry’s diverging fortunes, a booming civil aviation sector and a defence sector that is feeling the pinch of budget cuts, have reshaped the ranking of 60 publicly traded aerospace and defence companies worldwide. Our participants look at highlights in this year’s ranking and discuss where the industry is heading based on findings in the annual TPC study.
Aviation Week editors and industry specialists from PwC will highlight:
PwC proudly launched a new series, Gaining Altitude with PwC. In this series of white papers we will share with clients insights that we gain from working with clients, customers and suppliers in the ever changing dynamics of the global value chain for aerospace and defence. Our insights will cover all aspects of the program lifecycle: program strategy; bid and proposal; design, engineering and planning; field sustainment; program delivery; IT effectiveness and cross phase processes.
Over the next year, new issues will be released. Below is the list of already issued white papers and those currently on the schedule.
The key themes from this year's Mission control are:
The Mission control Q1 2012 update is also now available at this link MCQ1-2012