According to a compilation from the prestigious defense news website Defense News, the 6 largest U.S. arms trading companies are still experiencing positive growth in 2020 despite the pandemic.
From 2020 to now, in addition to COVID-19, the increasing tension between countries and regions has made many economic sectors difficult. However, the defense industry, especially US companies, continued to perform well.
Since the end of the war, the demand for weapons has remained high and the largest suppliers are still American companies. According to Defense News’ ranking of the Top 100 largest defense companies in the world by revenue in 2020, the US leads the world with 6 companies in the top 10. They include Lockheed Martin, Raytheon Technologies, Boeing, Northrop Grumman, General Dynamics and L3Harris technologies.
Except for Boeing, whose defense industry revenues are only 56%, the other names all have more than 80% of revenues from this segment.
In 2020, 5 of the 6 companies mentioned above still have positive growth. These are also companies whose shares have risen sharply due to the escalation of the war in Ukraine and Russia. In just one month, Northrop Grumman is up 25.5%, Lockheed is up 16%. Share prices of the remaining 4 companies rose by 5-10% during the intense war.
Companies with defense revenues in excess of $10 billion. Source: DefenseNews
From 2019 to 2020, these six companies all grew by 2% (5% if the merger with Raytheon Technologies is included), despite an 18% drop in total profit. This decline was largely due to excessive costs to repair Boeing’s KC-46A tanker and VC-25B aircraft, which reduced the company’s profits by 41% in 2020. In contrast to the bleak situation. protein at Boeing, the other five companies have increased their sales.
Led by Lockheed Martin with revenue growth of 9%, or $5.6 billion, bringing total company revenue to $62.5 billion in 2020. Prior to that, Lockheed Martin also had a revenue increase of $6.1 billion in 2019. In just two years, the company’s revenues grew $11.7 billion, or 20%.
The reason for this success is due to the promotion of the production of stealth fighter models of the F-35 series, an expensive product of the company. In 2020, the production of F35 aircraft reached a record 170. Thanks to the optimization of production costs, the price of each F35 also decreased by 13% in the period 2019 – 2020.
In addition to the F35, Lockheed Martin is also the manufacturer of the THAAD missile defense system, the F-22 Raptor, F-117 and the U-2 spy plane.
In second place is Raytheon Technologies – a new legal entity created by merging two big names, Raytheon Company, with United Technologies, with total revenues of USD 42 billion. Raytheon is the manufacturer of many famous missiles such as Tomahawk, Stinger anti-aircraft missile or Javelin anti-tank missile which is widely mentioned in Ukraine.
Notable growth also came from Northrop Grumman. In 2020, the company increased revenue by $2.8 billion (or 9%) to $31.4 billion. In 2020, Northrop Grumman also signed a $13.3 billion contract with the United States Air Force to develop an intercontinental nuclear missile system for its Trident II submarine.
According to a Defense News list, the largest defense companies outside the US are China’s aerospace industry ($25 billion) and China’s China State Shipbuilding ($13.4 billion), and BAE Systems of Britain (USD23 billion) USD .5 billion. ), Airbus (12 billion USD)… In total there are 15 companies with a turnover of more than 10 billion USD.
Unlike Boeing, Airbus’ defense revenues represent only a small fraction of 20% of total revenues.
According to PwC’s Aerospace and Defense industry report 2021, the defense industry is still standing during the COVID-19 period and expected to grow strongly. The first cause was the effects of global tensions in many regions. The Biden administration plans to increase its defense budget to $715 billion by fiscal year 2021, from $704 billion in 2020.
In Europe, the UK, Germany and France have also confirmed defense budget increases. In response to this new situation, the military-industrial market has shifted its business campaign towards promoting investment to expand its scale. The game is therefore increasingly focused on the big boys. The most obvious examples are the major mergers and acquisitions between Lockheed Martin and Aerojet Rocketdyne, Harris merging with L3 Technologies, Northrop Grumman merging Orbital ATK, Raytheon merging United Technologies and General Dynamic acquiring CSRA.
Source: Nhip song kinh te