The world’s leading defense and aerospace companies made their investors happy by following a generally upward trend in the stock markets for 9 months of the year.
Agreements made, new projects and orders received were supportive factors for the shares of defense and aerospace companies.
In the 9-month period, Italian Leonardo earned 69.5% for its investors, French companies Airbus 14.4%, Dassault Aviation 12.8, Thales 11.6, US-based Boeing 0.6% and British BAE Systems 16.6%, Germany-based Rheinmetall AG 29.8%, and South Korea-based Hanwha Aerospace 42.1%.
Within the scope of the Global Combat Air Program (GCAP), established by the United Kingdom, Japan and Italy, BAE Systems from the United Kingdom, Mitsubishi Heavy Industries from Japan and Leonardo from Italy reached an agreement in September to implement the concept phase of the new generation fighter aircraft.
Cathay Pacific, the flag carrier airline of China’s Hong Kong Special Administrative Region, announced last month that it would purchase 32 aircraft from European aircraft manufacturer Airbus.
In August, Indonesia signed a memorandum of understanding with the American Boeing company to purchase 24 F-15EX fighter jets.
News that Iraq was preparing to procure a €600 million C4I system consisting of Ground Master 400 type radars from the French company Thales was also among the factors that positively affected the company’s shares.
An agreement was reached between the British Ministry of Defense and BAE Systems to supply 155 mm artillery shells and ammunition.
BAE Systems received orders worth $361 million with this agreement. BAE Systems will produce amphibious combat vehicles for the US Marine Corps.
It was decided that the Amphibious Combat Vehicle (ACV) will be the new generation 8×8 amphibious armored vehicle designed and produced by BAE Systems in cooperation with the Italian company Iveco Defense Vehicles.
Dassault Aviation, one of the important companies of the French defense industry, also stated that their priority in the near future is to produce Rafale warplanes in order to meet new orders.
Recently, India announced that it would purchase 26 Rafale aircraft, while Indonesia announced that it had ordered 42 Rafale aircraft and announced that 24 of them had been finalized.
While South Korea rose to an important position in arms exports, the news that Hanwha Aerospace would double its howitzer production capacity had a positive impact on the company’s share performance.
Problems related to costs negatively affected performance
When we look at the defense and aerospace companies that could not satisfy their investors, it was seen that problems related to costs came to the fore.
During this period, General Dynamics’ shares decreased by 10.9%, RTX Corporation by 28.7%, L3 Harris Technologies by 16.4%, and Northropp Grummann by 19.3%.
It was noteworthy that the Chinese China Aerospace Science and Technology Corporation made its investors lose 14.3% in the 9-month period of the year.
In the USA, the risk of government shutdown negatively affected the stock performance of companies.
Costs and supply chain problems were the factors that caused RTX Corp to lose its investors.
Analysts also emphasized the news that China would impose sanctions on Northrop Grumman for selling weapons to Taiwan. Referring to L3 Harris Technologies, analysts reminded that the company could not reduce its costs.
L3 Harris Technologies also laid off nearly 100 engineers at its facilities in Greenville and Plano.
Source: Trthaber / Prepared by Irem Yildiz