EADS displaces Boeing as world’s largest aerospace and defence firm
25 May 2009
EADS edged out Boeing as the biggest aerospace and defence company in the world in 2008, based on revenues, according to a study from Deloitte. EADS, which lagged Boeing in 2007, moved ahead primarily because of a machinists strike in Boeing's commercial division late last year.
EADS, with partner Northrop Grumman, is currently locked in a bidding war to build the next air-refuelling tanker for the US Air Force, in a deal potentially valued at $35 billion. The stalemated contract, which has been overturned twice on various grounds, is likely to be rebid early this summer.
EADS led the revenue growth with almost $6 billion in additional revenue in 2008 over its 2007 revenue of about $57 billion. Boeing lagged marginally with its 2008 revenue at $60.9 billion, down from $66.4 billion in 2007.
Deloitte's study of 67 aerospace and defence companies or divisions of companies found that European companies grew faster than US companies in 2008, with revenue for European companies growing 9.56 per cent as compared to 6.3 percent for US companies.
Operating margins were 7.55 per cent for European companies in 2008 and 10.17 percent for US companies in the survey, Deloitte said.
