The U.S. aerospace and defense industry’s financial performance was sluggish in 2011, according to Deloitte's "2011 Top 20 U.S. Aerospace and Defense Company Financial Performance Analysis."

Financial performance among the top 20 U.S. aerospace and defense firms remained sluggish in 2011 as they posted a nominal 2 percent increase in revenues and a 3.2 percent increase in operating profit vs. 2010, according to the Deloitte report. Operating margins were flat at 10.9 percent on a base of $339.2 billion in sales revenues, and market capitalization fell 3.9 percent.

Deloitte releases its 2011 Top 20 U.S. aerospace and defense company financial performance analysis.

The report notes ongoing uncertainty over budget cuts by the Department of Defense and other cost-cutting and efficiency initiatives as key factors to the industry's continued sluggish performance.

However, the industry continued to benefit from the ramp up in commercial aircraft production. The study is based on sales revenue available from company public filings and press reports of fiscal year-end unaudited financial performance.

According to the repot, despite defense sector uncertainty, commercial aerospace is a bright spot for the industry. In 2011, the sub-sector's growth continued to build upon record production of commercial jets, as well as sales orders of more than 2,200 globally.

In spite of this growth, the report suggests that companies remain cautious as the Department of Defense enacts $487 billion in budget cuts over the next decade.

Posted April 11