The Aerospace and Defense industry reported its third consecutive year of record revenue and profit in 2012, on strong commercial aviation market that offset weaker defense industry performance.
To help provide insight on how aerospace & defense companies performed today and the challenges and opportunities they will face tomorrow, PwC is pleased to share our latest industry report, Aerospace & Defense 2012 year in review and 2013 forecast.
The A&D industry reported its third consecutive year of record revenue and profit. The uptick came on the strength of a surging commercial aviation market that more than offset a soft defense performance. For 2012, the top 100 A&D companies reported a record-setting $695 billion in revenue and $59.8 billion in operating profit. Revenue was up 4 percent compared with 2011, while operating profit was up 2% over 2011.
Although growth is expected to slow, commercial aerospace companies continue to be optimistic about the future. However, defense companies face an uncertain 2013. Among other challenges that lie ahead, sequestration went into effect on March 1, 2013, and defense companies are now bracing for the consequences and waiting for details regarding the impact on specific programs.