The Stockholm World Research Institute (SIPRI) has published data on the one hundred largest arms manufacturers. Their total sales amounted to 401 billion dollars - 1,5 percent less than in the 2013 year. At the same time, despite the sales decline over the past four years, the indicators of the total sales of companies from Top-100 SIPRI 2014-th by 43 percent higher than the Top-100 SIPRI 2002 of the year.
In 2014, companies from Western Europe and the United States continued to dominate the international arms market. Their total revenue amounted to 80,3 percent for the period (322 billion dollars). Compared to 2013 year, this figure decreased by 3,2 percent. The number of US and Western European defense companies in the Top-100 SIPRI also declined — from 67 in 2013 to 64 in 2014. A large share of reductions falls on Western Europe (totaling 26% of the total revenue of companies in the Top-100 or 104,26 billion dollars), in which the total revenues from arms sales decreased by 7,4 percent. These indicators reflect the economic difficulties of the region. Of the nine Western European countries whose companies entered the Top-100 SIPRI, only Germany (+ 9,4%) and Switzerland (+ 11,3%) showed growth.
The United States is the largest number of companies in the ranking: 100 companies entered the Top 2014 in 38, whose total revenues amounted to 54,4 percent (218,14 billion dollars).
Despite deteriorating financial and economic conditions, Russia increased its presence in the Top-100, which 2014 defense companies entered in 11 year (there were nine in 2013), while three companies were not present in the previous year's rating. The total share of Russian defense enterprises compared with 2013-m increased from 7,6 to 10,2 percent and amounted to 42,5 billion dollars.
Other arms manufacturers, traditionally represented in the Top 100: Australia, Israel, Japan, Poland, Singapore, Ukraine, accumulate six percent of defense market revenues in the 2014 year (24,06 billion dollars). And only Ukrainian companies showed a significant decline in profits in real terms compared to 2013 (-37,4%).
Producers from countries that recently entered the Top-100, in particular Brazil, India, the Republic of Korea, and Turkey, in the 2014 ranking of the year accounted for 3,7 percent of total revenues (12,3 billion dollars). The listed states are represented in the list of 12 brands.
All ten of the largest defense companies according to Top-100 are located in the United States and Western Europe. Their total revenue is 49,6 percent (198,89 billion dollars). In 2013, this equity ratio reached 50 percent. According to SIPRI experts, in the foreseeable future, the dominance of these companies in the Top-100 rating will remain. However, since the 2008 crisis of the year, their share has been slightly reduced as companies in other countries, such as Russia, profit from significant domestic public investment.
Top 100 SIPRI for 2014 year included 11 Russian companies, of which eight were in the rating for 2013. Their total revenue increased by 48,4 percent compared to the previous figure. According to SIPRI experts, the increase in Russia's defense spending and the success of its armaments on the international market have become the main growth factors. For the first time, the Institute’s rating includes Precision Complexes, RTI-Systems and the United Instrument-Making Corporation. The SIPRI experts had no financial statistics on the activities of the High-Precision Complexes holding company, but, in their opinion, in previous years this company could also be included in the Top-100.
Concern VKO "Almaz-Antey" remained the largest enterprise of the Russian defense industry. In accordance with the published report, the company's revenue from sales of military products made up 8,84 billion dollars, an increase of 800 million dollars compared to 2013 year. The total revenue indicator reached 9,208 billion dollars (PPN share - 96%). In the Top-100 ranking of the largest defense companies in the world, the concern ranked 11, ranking one place. The profit figures of Almaz-Antea are not listed in the Top-100 SIPRI ranking. Number of concern workers in 2014 year - 98 100 people.
United Aircraft Corporation (UAC) took 14-place in the list. Its revenue from the sale of drug products amounted to 6,11 billion dollars (80% of total revenues), total - 7,674 billion dollars, net profit - 219 million dollars. The number of people working in the concern in 2014 is not specified. In the top 100 of the world's largest defense companies 2013, KLA was ranked 15.
United Shipbuilding Corporation (USC) entered the 15-place. Its revenue from the sale of drug products amounted to 5,98 billion dollars (82% of total revenues), total revenue - 7,329 billion, net profit - 305 million dollars. Compared to 2013 year, the profit of USC from sales of drug products increased by 870 million dollars. The number of people working in the corporation in 2014 is 287 thousand people. In the Top 100 of the largest defense companies in the world last year, USC was in 17-th place.
In 2014, USC overtook the French shipbuilding company DCNS, which ranked 100 20 in the current Top-3,92 with a revenue indicator from the sale of 4,066 KPI in the current Top financial indicators. The total DCNS profit for the last year was XNUMX billion dollars according to the rating.
The Russian Helicopters holding company (part of Rostec State Corporation) was ahead of Sikorsky Aircraft, the largest US helicopter builder, in terms of financial performance of defense supplies. According to SIPRI, the holding's revenue from the sale of drug products amounted to 3,89 billion dollars (90% of total revenues), while Sikorsky had 3,88 billion. The total revenue of the Russian company reached 4,3 billion dollars, profit - 539 million dollars. Compared to 2013, the profit of Russian Helicopters from sales of drug products increased by 390 million dollars. The number of employees in 2014 is thousands of people. In the Top-42 of the largest defense companies in the world for the 100 year “Russian Helicopters” occupied the 2013-place.
For the first time, the United Instrument Making Corporation (DIC, part of Rostec) is included in the rating of the hundred largest defense companies in the world. In the Top-100 ranking for 2014, OPK took the 24 place for the year. The corporation's revenue from the sale of drug products amounted to 3,64 billion dollars (91% of total revenues), total revenues - 4,019 billion. The company’s earnings data does not include SIPRI. The number of employees in the defense industry in the 2014 year - 40 thousands of people.
Tactical Missile Weapons Corporation (KTRV) took the 34 position in the ranking of the hundred largest defense companies in the 2014, rising to 12 positions compared to the 2013 year. According to SIPRI, KTRV revenue from the sale of drug products amounted to 2,81 billion (95% of total revenue), total revenue - 2,96 billion. Compared to 2013, revenues from sales of drug products increased by 580 million dollars. The net profit of the corporation for the 2014 year Stockholm Institute does not lead. Not specified and the number of employees KTRV in 2014-m.
According to financial indicators, KTRV is gradually approaching the European concern - the manufacturer of missile weapons MBDA, whose revenue from the sale of military equipment in 2014 amounted to 3,18 billion dollars. According to Top-100 SIPRI for 2013, the difference in MBDA and KTRV revenues from supply of defense products was 1,49 billion dollars in favor of the European concern. In Top 100 for 2014, this ratio was reduced to 370 million dollars.
Holding "High-precision complexes" (included in Rostec) for the first time hit the rating of the hundred largest defense companies in the world. According to SIPRI, the revenue of “High-Precision Complexes” of the sale of weapons in 2014 amounted to 2,35 billion dollars (100% of total revenues). As a result, the holding took the 39 position in the Top-100 ranking. The total revenue of Precision Complexes in 2014 is 2,351 billion dollars, net profit is 0,289 billion. The number of employees reached 45 thousands.
Revenue of the United Engine Corporation (APC, part of Rostec) from the sale of military equipment amounted to 2,6 billion dollars in 2014 year. According to SIPRI, the revenue of the APC from the sale of drug products in 2014 has decreased compared with 2013 in 120 million dollars (61% of total revenue). At the same time, the total revenue of the corporation was 4,261 billion, and its profit increased to 2,081 billion. The number of employees of the JDC in 2014 year, the Stockholm Institute does not lead.
Concern Radioelectronic Technologies (KRET, part of Rostec) took the 45 position in the rating. KRET revenue from the sale of drug products amounted to 2,24 billion dollars (82% of total revenues), total - 2,731 billion, net profit - 221 million dollars. Compared to 2013, the KRET profit from sales of drug products increased by 390 million dollars in the year. The number of people working in the concern in 2014 is 54, thousands of people.
KRET for the first time surpassed one of its main competitors - the American manufacturer of radio electronics Rockwell Collins (Rockwell Collins). The revenue of this company from the sale of drug products amounted to 2,23 billion dollars in 2014 year. In the Top 100 SIPRI for 2013, KRET held the 54 position.
Research and Production Corporation (NPK) Uralvagonzavod has risen to 19 steps in the ranking of the hundred largest defense companies in the world - to 61-th place. Uralvagonzavod's revenue from the sale of drug products in 2014 reached 1,45 billion dollars (44% of total revenues) and increased by 510 million dollars compared to 2013 year. Total revenue - 3,313 billion dollars. NPC in 2014 had a loss estimated at 138 million dollars. The number of employees Uralvagonzavod in 2014 year SIPRI does not lead.
The RTI Systems concern in 2014 also entered the list of the hundred largest defense companies in the world, taking 91-place. The company's revenue from the sale of drug products in 2014 amounted to 0,84 billion dollars (45% of total revenues) and increased by 60 million dollars compared to 2013-m. The total revenue of the RTI-System concern is 1,844 billion. Profit of the company and the number of its employees in 2014, experts SIPRI do not specify.
A number of enterprises that are part of large Russian defense companies in 2014-m significantly increased revenues from the sale of defense products compared to 2013 year. In the event that the results of their activities were presented separately, these companies could occupy the appropriate places in the Top-100.
In particular, Sukhoi (included in the KLA) received 2,24 billion dollars in revenue from the sale of drug products in the 2014 year (100% of total revenue), which is 80 million dollars less than in 2013. The total revenue of Sukhoi is 2,243 billion dollars, the profit is 41 million dollars. The number of employees in the 2014 year SIPRI does not specify. In Top-100, for 2014, Sukhoi could take the 44 – 45 position.
The revenue of the Irkut corporation (included in the KLA) for 2014 year from the sale of drug products amounted to 1,24 billion dollars (73% of the total revenue). Compared with 2013-m, a decrease in its volumes by 130 million dollars was recorded. The total revenue of Irkut is 1,706 billion dollars, and the total profit is 1,88 billion. The number of employees in the 2014 year SIPRI does not specify. In the Top 100, for the 2014 corporation Irkut could be in the 67 – 68 position.
The Russian Aircraft Manufacturing Corporation (RSK) MiG also improved its financial performance. Its revenue from the sale of drug products in 2014 was 1,02 billion dollars (100% of total revenues), which is 70 million dollars more than in 2013. The total revenue of MiG - 1,02 billion dollars, profit figures and the number of SIPRI employees does not. In the SIPRI ranking, the company could be located on the 75 – 76 position.
Positive results were shown by the Ufa engine-building enterprise (UMPO, part of the UEC). UMPO revenue from the sale of drug products in 2014 amounted to 1,17 billion dollars (92% of total revenues), which is 70 million dollars more than in 2013-m. The total revenue of the enterprise is 1,272 billion dollars, the profit is 9 million dollars. The number of employees in the 2014 year SIPRI does not specify. In the Top-100 ranking for the 2014, the UMPO could take the 70 – 71-th place.
Significant success was achieved by the enterprises of the shipbuilding industry of Russia. Sevmash's revenue (included in USC) from the sale of drug products in 2014 amounted to 1,04 billion dollars (78% of total revenue) - 10 million dollars more than in 2013. The total revenue of the enterprise is 1,339 billion dollars, the profit is 86 million dollars. Sevmash could be on the 75 position in the ranking.
The revenue of the Zvezdochka ship repair center (included in USC) from the sale of security products amounted to 0,99 billion dollars (100% of total revenues), total - 0,99 billion. Indicators of profit and number of employees of the company SIPRI does not lead. The asterisk could be approximately on the 80 position in the ranking.
Also, experts note the Admiralty Shipyards (included in USC). The company's revenue from the sale of drug products amounted to 0,9 billion dollars (95% of total revenues) - 40 million dollars more than in 2013 year. The total revenue of the Admiralty shipyards is 0,946 billion dollars, the profit is 67 million dollars. Indicators of the number of employees of the company SIPRI does not. The company could take 86 – 87-e place in the ranking.
The profits of US defense companies in 2014 were still the most significant compared with other countries. The top 100 2014 of US companies included 38 - the same as in 2013. Seven of them entered the Top 10 of the world's largest defense firms. All 38 US companies account for a total of 54,4 percent of the total rating revenue (in 2013, 55,5%, a slight decrease is observed). If we compare the sum of profits of US defense companies from Top-100 in 2013 and 2014, then it decreased by 4,1 percent (a similar decrease was recorded in 2012 – 2013-m). Despite the weakening of the budget financing limits undertaken by the US Congress, the profits of American defense companies have declined. As in the 2013 year, the most significant losses were incurred by companies related to logistics and transportation of military goods. Exelis falls into this category (Exelis, revenue reduction by 2013% compared to 38,4). The revenue of some manufacturers of trucks and armored vehicles, for example, at Oshkosh (Oshkosh, 44,2% as compared to 2013), has also decreased.
Beginning with 2009, Top-100 SIPRI is headed by the American corporation Lockheed Martin (Lockheed Martin), which is considered the largest defense enterprise in the world. In 2014, its revenue volumes nearly reached the 37,5 billion dollar figure. This is 27,7 billion more than the revenue of the company L-3 Communications (L-3 Communications), which closes the Top-10 global arms manufacturers. In 2015, Lockheed Martin significantly expanded its range of activities by purchasing United States (United Technologies), the largest US manufacturer of helicopters, Sikorsky Aircraft. Therefore, according to SIPRI experts, the corporation's profits in 2015 will increase significantly compared to 2014 in the year and exceed 40 billions of dollars. However, "Sikorsky" is going through not the best of times. In 2014, in terms of revenues from sales of defense products, he lost, although insignificantly, to Russia's largest helicopter manufacturer, the holding company Helicopters of Russia.
France, Germany, Great Britain
As already mentioned, Germany is one of two European countries, whose defense companies gained more profits in 2014 compared to 2013 (+ 9,4%).
This is largely due to the increase in profits from defense supplies (29,5%) of one of the largest German shipbuilders - the company "Thyssen Krupp".
Source: The SIPRI Top 100 Arms-Producing and Military Services Companies, 2014. All data is rounded. N / A - data unknown
In contrast, French arms manufacturers experienced a significant decline in 2014. Their arms sales revenue decreased by 11,3 percent. Significantly decreased the sales of non-conventional vehicles of Dassault Aviation companies, which produce Rafale and Thales multipurpose fighters, by 29,3 and 17,4 percent, respectively. However, recent contracts for the supply of "Rafaley" are likely to significantly improve the performance of both Dassault Aviation and Thales in 2015.
In 2014, the total drug sales of nine British companies dropped 9,3 percent compared to 2013. SIPRI experts associate this fall with a reduction in a number of items of defense budgets in the UK and the USA. Since the United States is one of the most important markets for UK defense companies (and first of all, BAE Systems), the dynamics of changes in US defense spending have a certain effect on the revenue of British enterprises.
Poland and Ukraine
SIPRI experts believe that the creation of the Polish Armaments Group (PAG) company, which includes production and repair facilities under the leadership of the country's government, is the main factor contributing to the growth of Polish profits from arms sales. PAG is the only Polish company that entered the Top-100 for 2014 of the year. It also receives increased profits due to an increase in the defense budget of Poland.
Ukrainian State Concern (GC) "Ukroboronprom", which included almost all the enterprises of the national defense industry, in the 2014 suffered significant losses in the year. GK is the only Ukrainian company included in the Top-100. In the ranking, her position deteriorated significantly: she moved from 58 to 2013 in 90 in 2014. During this period, the profit of Ukroboronprom decreased by 50,2 percent. The largest Ukrainian producer of aircraft engines, Motor Sich, was also excluded from the rating. SIPRI experts believe that the political crisis in the country is the main cause of these problems.
Brazil, India, Republic of Korea, Turkey
The defense companies of Brazil, India, the Republic of Korea, and Turkey appeared on the international arms market relatively recently. At the same time, the SIPRI experts pay attention to the fairly rapid pace of their development.
The Top 100 for 2014 year from the above countries included 12 companies, the total revenue of which was 3,7 percent (14,83 billion dollars) of the total sales of defense products. Compared to 2013, the six South Korean companies in the 2014 rating of the year increased their total revenues by 10,5 percent. For the first time, Hyundai Rotem entered the rating on the 99 position. SIPRI experts believe that the success of the Republic of Korea is associated with an increase in national defense spending, defense purchases, and export volumes. The growth of economic activity of South Korean companies exceeded the indices of Indian companies, which in 2014 were reduced compared to 2013 (then India was in the lead among the countries whose companies were relatively recently in the Top 100 SIPRI).
For the first time, two Turkish defense companies entered the SIPRI rating, in particular Aselsan (Aselsan) and Terkish Aerospace Industries (Turkish Aerospace Industries - TAI). In the period of 2005 – 2014, Asel's revenue increased by 215 percent, and TAI - by 1074 percent. According to SIPRI experts, the development of the Turkish defense industry is promoted by substantial government support, the demand for locally produced weapons and the intention of the Turkish government to equip the army with weapons of primarily national production. Increased exports also had a positive effect on the revenues of Turkish defense companies.