1
First Quarter 2014
% Change
Four
Weeks
Q1
2014
52
Weeks
Defense Prime Index
(0.8%)
2.4% 57.8%
Defense Systems Index
0.4%
8.9% 50.5%
Diversified Government Services Index
(6.0%)
(0.8%)
24.7%
Middle Market Government Services Index
0.4%
18.4% 47.0%
Large Cap Aerospace Index
(0.9%)
(2.0%)
32.5%
Mid Cap Aerospace Index
(1.7%)
(7.6%)
34.5%
Small Cap Aerospace Index
(0.0%)
9.0% 54.6%
International Aerospace Index
2.2%
(5.8%)
29.4%
S&P 500
1.4%
1.3% 19.3%
Notable Quarterly M&A Activity
Capital Markets
L-3 acquired Data Tactics
Lockheed Martin agreed to acquire Industrial Defender
Precision Castparts acquired Aerospace Dynamics
International from The Marvin Group for $625 million
Thales acquired LiveTV, LLC from JetBlue Airways
Corporation for $400 million
Ultra Electronics acquired 3 Phoenix for $87 million
Wesco Aircraft acquired Haas Group International
from The Jordan Company for $550 million
Industry News Quarterly Summary
A Malaysia Airlines’ 777 jet carrying 239 people from Kuala Lumpur to Beijing vanished on March 8. Although the exact cause of the
crash is still undetermined, investigators were able to track the plane to a region some 2,000 miles west of Perth Australia where the
search for wreckage is still underway.
Following Russia’s annexation of Crimea, tensions continue to escalate in several Eastern Ukrainian cities with multiple violent
clashes between pro-government and anti-government protestors.
Boeing introduced the Boeing Black, a specialized smartphone designed for use by government agencies and contractors with high
communication and data security requirements.
The Army announced that it is canceling existing procurement plans for the Ground Combat Vehicle (GCV) in favor of redirecting
funds toward developing a next-generation platform.
Finmeccanica announced plans for a new organizational and operating model. The reforms are similar to those undertaken by Airbus
Group and will focus the Company on aerospace, defense and space sectors in a bid to restore profitability.
Sikorsky signed agreements with the Turkish government and key Turkish aerospace contractors as part of a $3.5 billion program to
produce up to 600 aircraft for both Turkish indigenous use and export over the next 30 years.
The US National Telecommunications and Information Administration (NTIA) announced that it intends to transition key Internet
domain name functions to a global multi-stakeholder community.
Quarterly Industry Snapshot
Source: Public Filings; Capital IQ as of 03/31/14
