The aerospace, construction, and firearms industries are prime examples of industries for which governments are major customers

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The aerospace, construction, and firearms industries are prime examples of industries

for which governments are major customers and whose revenues and profits are

significantly—in some cases, predominantly—affected by their sales to governments.

An example is the European Aeronautic Defence and Space Company (EADS), a global leader in aerospace, defense, and related services with head offices in Paris and Ottobrunn,

Germany. In 2008, EADS generated revenues of €43.3 billion and employed an

international workforce of about 118,000. EADS includes Airbus, a leading manufacturer

of commercial aircraft; Airbus Military, providing tanker, transport, and mission

aircraft; Eurocopter, the world’s largest helicopter supplier; and EADS Astrium, the European

leader in space programs, including Ariane and Galileo. Its Defence & Security

Division is a provider of comprehensive systems solutions and makes EADS the major

partner in the Eurofighter consortium and a stakeholder in missile systems provider

MBDA. On 3 March 2008, EADS shares rose 9.2 percent after the US Air Force chose

its Airbus A330 over Boeing’s 767 for an airborne-refueling plane contract worth as

much as US$35 billion.

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Related Book For  answer-question

Equity Asset Valuation

ISBN: 9781119850519

3rd Edition

Authors: Jerald E Pinto, CFA Institute

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