U.S. Defence industry performance

13/04/2012
U.S. aerospace and defence companies’ financial performances in 2011 reflect the ongoing Department of Defense budget cuts. According to Deloitte’s recent report "2011 Top 20 U.S. Aerospace and Defense Company Financial Performance Analysis", the general performance of the aerospace and defence industry is to remain sluggish in the near future.

"Over the past year we've started to see the effects of anticipated cuts in defence spending as outlined in the Budget Control Act, as well as uncertainty over the potential for defense industry funding due to the planned budget sequestration," said Tom Captain, vice chairman, Deloitte LLP and U.S. aerospace and defence leader.

On the other hand, the commercial aircraft production sector is emerging as a bright spot as it reached a new sales record in 2011, thanks to growing demand from the Asia-Pacific region and the widespread need for more fuel-efficient aircraft.
The A&D industrial sector remains cautious regarding its future performance, as the U.S. Department of Defense is to enact a $487 billion cut in the budget over the next decade.