Defense Breakdown: Raytheon Company (RTN), General Dynamics Corporation (NGD), United Technologies Corporation (UTX)

Page 1 of 2

Sequestration budget cuts have already started slashing into the U.S. defense budget and unprepared defense contracts are soon going to start feeling the pain.

This article sets out the geographical split of revenues across four major U.S. government defense contractors. The purpose of this is to highlight players in the defense sector within the U.S., analyzing each company to establish if they have diversified outside of the U.S. enough to be protected from some of the spending cuts.

Raytheon Company (NYSE:RTN)

General Dynamics Corporation (NYSE:GD)

Division Revenue Year-Over-Year Change
Geographical Split — Revenue 2012
United States $25,004 -79.30%
Rest of the World $1,240 -3.90%
United Kingdom $1,027 -3.30%
Canada $878 -2.80%
China $876 -2.80%
Other $2,488 -7.90%

Figures in millions.

General Dynamics Corporation (NYSE:GD)’ adjusted 2012 full-year earnings from continuing operations were $2.3 billion. On a GAAP basis, the company reported a loss from continuing operations of $332 million.

During the fourth quarter, it recorded a $2 billion goodwill impairment related to its Information Systems and Technology group, which is one of the reasons that the company reported a GAAP loss. It also recorded $867 million in other charges in the quarter.

Unfortunately, the overwhelming majority (79%) of General Dynamics’ 2012 revenue is from defense spending in the U.S., with only 3% coming from the faster-growing Chinese market and a combined 21% for the rest of the world.

It should be noted that the 80% fall in revenues from U.S. operations is for the most part related to the company’s goodwill impairment and other charges. That said, General Dynamics Corporation (NYSE:GD) has very little diversification outside of the U.S., making it highly susceptible to spending cuts.

Raytheon Company (NYSE:RTN)

Divisional Split — Revenue 2012
Integrated Defense Systems $5,037 -19.10%
Intelligence & Information Systems $3,012 -11.40%
Missile Systems $5,693 -21.60%
Network Centric Systems $4,058 -15.40%
Space & Airborne Systems $5,333 -20.20%
Technical Services $3,239 -12.30%
Geographical Split — Revenue 2012
Asia Pacific $2,510 -10.30%
Europe $1,252 -5.10%
Middle East $2,470 -10.10%
United States $18,182 -74.50%

Figures in millions.

Like General Dynamics Corporation (NYSE:GD), Raytheon Company (NYSE:RTN) does most of its business in the U.S. However, unlike General Dynamics, Raytheon does about a quarter of its business outside the U.S.

Seventy-five percent of Raytheon’s 2012 revenue was from the U.S., 10% from Asia-Pacific, 10% from the Middle East, and 5% from Europe.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!