GRAHAM WARWICK / WASHINGTON DC
Honeywell Aerospace expects its defence and space business to grow again this year, with increased equipment sales to platform manufacturers offsetting a planned reduction in engineering work on the Lockheed Martin F-35 Joint Strike Fighter.
Defence and space accounted for about 47% of Honeywell's $8.8 billion in aerospace sales last year, with $4.2 billion in revenues forecast for this year, says Scott Starrett, vice-president defence and space. More than half of sales will be in the military aircraft sector, although the surface platforms sector is growing fast, he says, fuelled by the company's involvement in the US Army's Future Combat Systems programme.
Honeywell is providing stronger support for its defence and space portfolio and investments than in the past, says Starrett. "We have the building blocks of a solid business and the ability to invest in things coming downstream."
Sales to original equipment manufacturers are expected to increase 4-5% this year. The company has won as-yet unannounced contracts to supply a significant number of systems for Japan's Kawasaki C-X/P-X transport and maritime-patrol aircraft and plans to bid for several systems on the European Airbus Military A400M transport. International business accounts for about a third of defence and space sales, says Starrett.
Defence accounted for $2 billion in sales for Honeywell's Engines, Systems & Services division last year, predominantly in retrofits and upgrades, including helicopter re-engining. Meanwhile, modernisation accounts for over 70% of the $600 million a year in military-aircraft avionics sales at the Defense & Space Electronics Systems division. Aftermarket sales, worth $1.3 billion across the defence and space business last year, will increase slightly this year, says Starrett.
Source: Flight International
