Imran Khan
PDF VETERAN
- Joined
- Oct 18, 2007
- Messages
- 68,815
- Reaction score
- 5
- Country
- Location
Financial turmoil rocks defence safe havens By Guy Anderson and Keri Wagstaff-Smith
10 November 2008
The world's top 10 defence companies shed almost USD180 billion of their combined market value from the peaks to the troughs of the last 12 months. The decline across the board of more than 48 per cent has challenged the conventional wisdom that the aerospace and defence (A&D) sectors provide a safe haven during turbulent times.
The market capitalisation of the leaders by defence revenue - Lockheed Martin, Boeing, BAE Systems, Northrop Grumman, Raytheon, General Dynamics, EADS, L-3 Communications, Finmeccanica and United Technologies - had plunged from 12-month highs to reach a combined USD244 billion on 5 November: a sum roughly equivalent to their combined defence revenues.
The average fall of the 10 market leaders was 38 per cent.
The falls from the combined peaks to the lows of the 52 weeks to end October shaved USD179 billion from the market value of the 10: from USD371 billion to USD191 billion.
The market leaders were outperformed marginally by the wider benchmark indices. The US NASDAQ lost 44.56 per cent of its value between the high and low points of the year, while the UK FTSE100 leading share index swung 44.56 per cent. The aerospace and defence sector on the London Stock Exchange narrowly outperformed the leading shares index, however, with a drop from high to low of 41.42 per cent.
It is evident that wider economic turbulence on the markets explains an element of the falls in the A&D sectors, as do the exposure to the civil market of some practitioners and the individual issues affecting individual programmes.
Image: 2008 market capitalisation of leading defence companies [from high to low]. (Jane's)
259 of 823 words
© 2008 Jane's Information Group
10 November 2008
The world's top 10 defence companies shed almost USD180 billion of their combined market value from the peaks to the troughs of the last 12 months. The decline across the board of more than 48 per cent has challenged the conventional wisdom that the aerospace and defence (A&D) sectors provide a safe haven during turbulent times.
The market capitalisation of the leaders by defence revenue - Lockheed Martin, Boeing, BAE Systems, Northrop Grumman, Raytheon, General Dynamics, EADS, L-3 Communications, Finmeccanica and United Technologies - had plunged from 12-month highs to reach a combined USD244 billion on 5 November: a sum roughly equivalent to their combined defence revenues.
The average fall of the 10 market leaders was 38 per cent.
The falls from the combined peaks to the lows of the 52 weeks to end October shaved USD179 billion from the market value of the 10: from USD371 billion to USD191 billion.
The market leaders were outperformed marginally by the wider benchmark indices. The US NASDAQ lost 44.56 per cent of its value between the high and low points of the year, while the UK FTSE100 leading share index swung 44.56 per cent. The aerospace and defence sector on the London Stock Exchange narrowly outperformed the leading shares index, however, with a drop from high to low of 41.42 per cent.
It is evident that wider economic turbulence on the markets explains an element of the falls in the A&D sectors, as do the exposure to the civil market of some practitioners and the individual issues affecting individual programmes.
Image: 2008 market capitalisation of leading defence companies [from high to low]. (Jane's)
259 of 823 words
© 2008 Jane's Information Group
