Boeing started the year on a high note as the Company announced it set a new record of deliveries in 2013 in addition to coming to an agreement with machinist union members surrounding assembly work for the new 777X. Driven by high production rates on the 737, 777, and 787 lines of aircraft, which the OEM has been steadily ramping up over the past few years, Boeing delivered 648 commercial aircraft in 2013.
2014 looks to be an important year for execution for three major aerospace OEMs and their newer model landmark aircraft. Airbus is now facing a crucial twelve months as it enters the second half of the A350-900 flight-test program and moves towards addressing items required for certification.
M&A activity in the aerospace / defense industry in 2013 was decidedly mixed. The headline is that 158 industry transactions were announced during the year, down from 2012’s 177 transaction announcements (see chart below).
Ending a year that witnessed several high-profile cybersecurity breaches, December saw two of the year’s largest. National retailer Target Corp. reported a breach of it users’ credit and debit card data that affected approximately 40 million accounts, with the perpetrators gaining access to card numbers and encrypted PIN data.
After the Senate voted to pass the 2014 National Defense Authorization Act (“NDAA”) last week, President Obama signed the legislation into law on Thursday.
The Senate voted to pass the 2014 National Defense Authorization Act (“NDAA”) and send defense legislation to the Office of the President for the 53rd consecutive year. In a vote that ended minutes before midnight Thursday, the chamber voted 84 to 15 in favor of the NDAA, which clears the Pentagon to spend $607 billion in 2014, including $527 billion in base funding and $80 billion for global operations and war supplementals.
The House voted Thursday night to ease across-the-board federal spending cuts and head off future government shutdowns. The legislation, heading to the Senate for a vote, calls for federal employees hired in 2014 to contribute a total of 10.6% of their salaries to their retirement benefits, a 1.3% increase in contributions from those made by 2013 hires.
Bombardier received a mix of positive and negative news this week. China Express placed a firm order for three CRJ900 jets with options for 13 more in a deal worth an estimated $733 million.