Vought Aircraft Industries, number 47 on our Top 100, has seen itself transformed in 2009.
As a major supplier of aerostructures to blue-chip aircraft manufacturers, Vought has found itself at the centre of a convergence of industry-wide production cuts as a direct result of the downturn in the economy.
The Dallas-based company, with about $1.8 billion in yearly revenues, has seen production cuts on both its commercial and defence portfolios on programmes such as the Airbus A330/A340, Boeing 777, and the large-cabin Gulfstream G450 and G550. In addition, slowing ramp-ups on the 767 and 747-8 programmes have taken a further toll. Complicating things further is the uncertainty in the future of the C-17 cargo transport and the cancellation of Cessna's Columbus business jet.
For Vought and its employees, spread across eight US locations, the most significant event of the past year has been the contraction of the company's role on Boeing's 787 programme.
Vought has held an extensive role on Boeing's flagship product since November 2003, establishing an aerospace foothold in South Carolina's low country. The North Charleston facility was responsible for fabrication and integration of the 787's composite aft fuselage barrels.
However, deep challenges grew as the financial burden of managing its contribution to the 787 programme mounted.
Vought divested the company's North Charleston 787 operations to Boeing in July 2009 in a $580 million deal that included forgiveness of an additional $422 million in advance payments.
"We take great pride knowing that we have been able to satisfy the technological and physical demands of the 787 programme alongside much larger companies," said Elmer Doty, Vought's president and chief executive at the time of the deal.
"However, the financial demands of this programme are clearly growing beyond what a company our size can support," he added.
Despite the divestment of the company's South Carolina operations to Boeing, Vought remains a major player in the aerostructures world with significant work share on the 747-8 programme. In addition, as part of the Charleston acquisition, Boeing increased Vought's contributions on both the 737 and 777 programmes leading to an expansion of its Stuart, Florida facility.
"Although we have now closed an important chapter in our company's history," Doty says of the 787, "we take pride in knowing Vought's contribution will live on in this revolutionary aircraft."
At a glance
- Top 100 rank 47
- HQ Dallas, Texas, USA
- Aero revenues $1.79bn
- Sales growth 10.5%
- Operating margin 6%
- ROCE 9.1%
- Employees 6,600
- CEO Elmer Doty
Source: Flight International
