Aerospace & Defense – R&D and increasing demand

The Aerospace and Defense sector has frown after the recession. It was in 2011 when it turned around only in 2013 it started to show a decrease in growth. Their revenues from last year reached $1167 billion, which was a CAGR of 3.6%. The Asian market grew by 6.7%, while the European by 4%, which is above the average. Their values are $259 and $265 billion.

The defense segment was valued most lucrative, as its revenues reached a $789 billion, which is 55.9% of the market value. The civil aerospace was $386 billion. The performance for both segments is expected to slow down to a CAGR of 1.8% by 2018. This would make the market value $1279 billion. The European sector is expected to grow by 4% and the Asian one to 6%.

Boeing, as one of the market leaders, grew from $90 per share to the amazing $130 in just one year. This led the management to increase dividend yield along with EPS, Airbus had similar success, with share prices going from $14 to $18 and increasing rivalry.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s