Representation of Russian companies is growing in the ranking of the Stockholm Peace Research Institute
The Stockholm International Peace Research Institute (SIPRI) has published data on the 100 largest arms manufacturing companies. Their combined sales totaled $ 401 billion, down 1.5 percent from 2013. However, despite declining sales over the past four years, the total sales of SIPRI Top 100 companies in 2014 are 43 percent higher than the SIPRI Top 100 in 2002.
In 2014, companies from Western Europe and the United States continued to dominate the international arms market. Their total revenue was 80.3 percent for the specified period ($ 322 billion). Compared to 2013, this figure decreased by 3.2 percent. The number of US and Western European defense companies in the SIPRI Top 100 also declined, from 67 in 2013 to 64 in 2014. A large share of the cuts falls on Western Europe (accounting for 26% of the total revenues of companies in the Top 100 or $ 104.26 billion), in which total revenues from arms sales fell by 7.4%. These indicators reflect the economic difficulties of the region. Of the nine Western European countries whose companies entered the SIPRI Top 100, only Germany (+9.4%) and Switzerland (+11.3%) showed growth.
The United States is the largest number of companies in the ranking: 38 companies entered the Top 100 in 2014, whose total revenue was 54.4 percent ($ 218.14 billion).
Despite the deteriorating financial and economic conditions, Russia increased its presence in the Top 100, which already included 11 defense companies in 2014 (in 2013 there were nine), while three companies were not present in the previous year's ranking. The total share of Russian defense enterprises in comparison with 2013 increased from 7.6 to 10.2 percent and amounted to 42.5 billion dollars.
Other countries - manufacturers of weapons, traditionally represented in the Top 100: Australia, Israel, Japan, Poland, Singapore, Ukraine, accumulate six percent of the revenue of the defense market in 2014 ($ 24.06 billion). And only Ukrainian companies showed a significant drop in profits in real terms compared to 2013 (-37, 4%).
Manufacturers from the countries that recently entered the Top 100, in particular Brazil, India, the Republic of Korea, Turkey, accounted for 3.7 percent of the total revenue ($ 12.3 billion) in the 2014 ranking. The listed states are represented in the list by 12 brands.
All ten of the largest defense companies in the Top 100 are located in the United States and Western Europe. Their total revenue is 49.6 percent ($ 198.89 billion). In 2013, this share reached 50 percent. According to SIPRI experts, these companies will continue to dominate the Top 100 for the foreseeable future. However, since the 2008 crisis, their share has declined slightly as companies in other countries, such as Russia, profit from significant domestic public investment.
Russia
The SIPRI Top 100 for 2014 included 11 Russian companies, of which eight were present in the 2013 ranking. Their total revenue increased by 48.4 percent over the previous figure. According to SIPRI experts, the increase in Russia's defense spending and the success of its weapons on the international market have become the main factors of growth. For the first time, the institute's rating included High-Precision Complexes, RTI-Systems and the United Instrument-Making Corporation. Previously, SIPRI experts did not have financial statistics on the activities of the High Precision Complexes holding, but, in their opinion, this company could have been included in the Top 100 in previous years.
Concern East Kazakhstan region Almaz-Antey remained the largest enterprise in the Russian defense industry. According to the published report, the company's revenue from the sale of military products (MPN) amounted to $ 8.84 billion, an increase of $ 800 million compared to 2013. The indicator of total revenue reached $ 9.208 billion (the share of the personal income tax is 96%). In the ranking of the Top 100 largest defense companies in the world, the concern took 11th place, moving up one position. Profit figures for Almaz-Antey are not shown in the SIPRI Top 100. The number of employees of the concern in 2014 was 98,100 people.
The United Aircraft Corporation (UAC) was ranked 14th on the list. Its proceeds from the sale of MPs amounted to $ 6, 11 billion (80% of total revenue), total - $ 7, 674 billion, net profit - $ 219 million. The number of people who worked in the concern in 2014 is not specified. In the Top 100 largest defense companies in the world in 2013, UAC was ranked 15th.
The United Shipbuilding Corporation (USC) moved up to 15th place. Its proceeds from the sale of MPs amounted to $ 5.88 billion (82% of total revenue), total revenue - $ 7.329 billion, net profit - $ 305 million. Compared to 2013, USC's profit from sales of military equipment increased by $ 870 million. The number of people who worked in the corporation in 2014 - 287 thousand people. In the Top 100 largest defense companies in the world last year, USC was in 17th place.
In 2014, in terms of the main financial indicators, USC bypassed the French shipbuilding company DCNS, which took the 20th position in the current Top 100 with an indicator of proceeds from the sale of PVN 3.92 billion dollars. DCNS 'total revenue for the past year was rated at $ 4.066 billion.
The Russian Helicopters holding (part of the Rostec state corporation) has outpaced the largest American helicopter manufacturer Sikorsky Aircraft in terms of financial indicators for the supply of defense products. According to SIPRI, the holding's proceeds from the sale of MPs amounted to $ 3.89 billion (90% of the total revenue), while Sikorsky's - $ 3.88 billion. The total revenue of the Russian company reached $ 4.3 billion, profit - $ 539 million. Compared to 2013, the profit of Russian Helicopters from military equipment sales increased by $ 390 million. The number of employees in 2014 is 42 thousand people. In the Top 100 of the world's largest defense companies in 2013, Russian Helicopters ranked 26th.
The United Instrument Making Corporation (OPK, part of Rostec) for the first time is included in the rating of the 100 largest defense companies in the world. In the Top-100 ranking for 2014, the military-industrial complex took 24th place. The corporation's revenue from the sale of MPs amounted to $ 3.44 billion (91% of total revenue), total revenue - 4.019 billion. SIPRI does not provide information on the company's profits. The number of defense industry employees in 2014 was 40 thousand people.
The Tactical Missile Armaments Corporation (KTRV) took 34th position in the ranking of the 100 largest defense companies in 2014, up 12 positions compared to 2013. According to SIPRI, KTRV's revenue from the sale of MPs amounted to $ 2.81 billion (95% of total revenue), total revenue - 2.96 billion. Compared to 2013, revenue from sales of military equipment increased by $ 580 million. The Stockholm Institute does not provide indicators of the corporation's net profit for 2014. The number of KTRV employees in 2014 is not specified either.
In terms of 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. According to the Top 100 SIPRI for 2013, the difference in revenue of MBDA and KTRV from the supply of military equipment was $ 1.49 billion in favor of the European concern. In the 2014 Top 100, this ratio dropped to $ 370 million.
The High-Precision Complexes holding (part of Rostec) for the first time was included in the rating of the 100 largest defense companies in the world. According to SIPRI, the revenue of High Precision Complexes from the sale of military equipment in 2014 amounted to $ 2.35 billion (100% of the total revenue). As a result, the holding took the 39th position in the Top-100 rating. The total revenue of High-Precision Complexes in 2014 was $ 2.351 billion, net profit was $ 0.289 billion. The number of employees of the company has reached 45 thousand.
The revenue of the United Engine Corporation (UEC, part of Rostec) from the sale of MPP amounted to $ 2.6 billion in 2014. According to SIPRI, UEC's revenue from the sale of MPP in 2014 decreased compared to 2013 by $ 120 million (61% of total revenue). At the same time, the total revenue of the corporation amounted to $ 4.261 billion, and its profit increased to 2.081 billion. The Stockholm Institute does not provide the number of UEC employees in 2014.
Concern "Radioelectronic Technologies" (KRET, part of Rostec) took 45th position in the rating. The revenue of KRET from the sale of MPs amounted to $ 2.24 billion (82% of the total revenue), total - $ 2.731 billion, net profit - $ 221 million. Compared to 2013, KRET's profit from sales of military equipment increased by $ 390 million. The number of people working in the concern in 2014 was 54 thousand people.
For the first time, KRET has outstripped one of its main competitors - the American electronics manufacturer Rockwell Collins. The revenue of this company from the sale of MPs amounted to $ 2.23 billion in 2014. In the Top 100 SIPRI for 2013, KRET occupied the 54th position.
Research and Production Corporation (NPK) Uralvagonzavod has climbed 19 steps in the ranking of the 100 largest defense companies in the world - to 61st place. Uralvagonzavod's revenue from the sale of MPP in 2014 reached $ 1.45 billion (44% of total revenue) and increased by $ 510 million compared to 2013. Total revenue - $ 3.313 billion. NPK in 2014 had a loss estimated at $ 138 million. SIPRI does not give the number of Uralvagonzavod employees in 2014.
In 2014, the RTI Systems concern also entered the list of the 100 largest defense companies in the world, taking 91st place. The company's revenue from the sale of MPs in 2014 amounted to $ 0.84 billion (45% of total revenue) and increased by $ 60 million compared to 2013. The total revenue of the RTI-Systems concern is 1.844 billion. SIPRI experts do not specify the company's profit and the number of its employees in 2014.
A number of enterprises that are part of large Russian defense companies in 2014 significantly increased their revenue from the sale of military equipment compared to 2013. In the event that the results of their activities were presented separately, these companies could take corresponding places in the Top 100.
In particular, the Sukhoi company (part of the UAC) received $ 2.24 billion in revenue from the sale of MPP in 2014 (100% of total revenue), which is $ 80 million less than in 2013. Sukhoi's total revenue is $ 2.243 billion, and its profit is $ 41 million. SIPRI does not specify the number of the company's employees in 2014. In the Top 100 for 2014, Sukhoi could take 44-45th position.
The revenue of the Irkut corporation (part of the UAC) for 2014 from the sale of MPs amounted to $ 1.24 billion (73% of the total revenue). Compared to 2013, a decrease in its volume by $ 130 million was recorded. The total revenue of Irkut is $ 1.706 billion, and the total profit is $ 1.88 billion. SIPRI does not specify the number of the company's employees in 2014. In the Top 100 for 2014, the Irkut corporation could be in 67–68th place.
The Russian Aircraft Corporation (RSK) MiG also improved its financial performance. Its revenue from the sale of MP in 2014 amounted to $ 1.02 billion (100% of total revenue), which is $ 70 million more than in 2013. The total revenue of MiG is 1.02 billion dollars; SIPRI does not provide profit figures and the number of employees. In the SIPRI rating, the company could be in the 75-76th position.
The Ufa Engine-Building Enterprise (UMPO, part of the UEC) showed positive results. In 2014, UMPO's revenue from the sale of MPs amounted to $ 1.17 billion (92% of total revenue), which is $ 70 million more than in 2013. The total revenue of the enterprise is $ 1.272 billion, profit is $ 9 million. SIPRI does not specify the number of the company's employees in 2014. In the Top-100 rating for 2014, UMPO could take 70-71 place.
Enterprises of the Russian shipbuilding industry have also achieved significant success. The revenue of Sevmash (part of the USC) from the sale of MPP in 2014 amounted to $ 1.04 billion (78% of the total revenue) - $ 10 million more than in 2013. The total revenue of the enterprise is $ 1.339 billion, profit is $ 86 million. Sevmash could be on the 75th position in the rating.
The proceeds of the Zvezdochka ship repair center (part of the USC) from the sale of PVN amounted to $ 0.99 billion (100% of the total revenue), the total - $ 0.99 billion. SIPRI does not provide indicators of profit and number of employees. Zvezdochka could be at about 80th position in the ranking.
Experts also note the Admiralty Shipyards (part of the USC). The company's revenue from the sale of MPs amounted to $ 0.9 billion (95% of total revenue) - $ 40 million more than in 2013. The total revenue of the Admiralty Shipyards is $ 0.946 billion, the profit is $ 67 million. SIPRI does not provide any figures for the number of employees. The enterprise could take 86-87th place in the rating.
USA
Profits for US defense companies continued to be the largest in 2014 compared to other countries. The 2014 Top 100 includes 38 US companies - the same number as in 2013. Seven of them were included in the Top 10 of the world's largest defense firms. All 38 American companies account for a total of 54.4 percent of the revenue of the entire rating (in 2013 - 55.5%, there is a slight decrease). If we compare the amount of profits of American defense companies from the Top 100 in 2013 and 2014, then it decreased by 4.1 percent (a similar decrease was recorded in 2012-2013). Despite the loosening of the budgetary limits by the US Congress, the profits of US defense companies have declined. Just as in 2013, the most significant losses were incurred by companies related to the logistics and transportation of military cargo. Exelis falls into this category (Exelis, a decrease in revenue compared to 2013 by 38.4%). Revenue also decreased for some manufacturers of trucks and armored vehicles, for example, for Oshkosh (Oshkosh, 44, 2% compared to 2013).
Since 2009, the Top 100 SIPRI has been led by the American corporation Lockheed Martin, which is considered the largest defense company in the world. In 2014, the volume of its revenue almost reached $ 37.5 billion. This is 27.7 billion more than the revenue of the company "L-3 Communications" (L-3 Communications), trailing the world's top 10 arms manufacturers. In 2015, Lockheed Martin significantly expanded its range of activities by acquiring the largest US helicopter manufacturer, Sikorsky Aircraft, from United Technologies. Therefore, according to SIPRI experts, the corporation's profits in 2015 will increase significantly compared to 2014 and will exceed $ 40 billion. At the same time, Sikorsky is going through hard times. In 2014, in terms of revenue from the sale of defense products, it yielded, albeit insignificantly, to the largest Russian helicopter manufacturer, the Russian Helicopters holding.
France, Germany, UK
As already mentioned, Germany is one of the two European countries whose defense companies received more profits in 2014 compared to 2013 (+9.4%).
This is largely due to an increase in profits from defense supplies (29.5%) of one of the largest German shipbuilders - Thysen Krupp.
Source: The SIPRI Top 100 Arms-Producing and Military Services Companies, 2014. All figures are rounded. N / a - data unknown
By contrast, French arms manufacturers experienced a significant decline in 2014. Their proceeds from arms sales decreased by 11.3 percent. Dassault Aviation, which manufactures Rafale multirole fighters, and Thales, dropped significantly, by 29, 3 and 17, 4 percent, respectively. At the same time, the recently concluded contracts for the supply of Rafale are likely to significantly improve the performance of both Dassault Aviation and Thales in 2015.
In 2014, the total sales of military equipment of nine British companies decreased by 9.3 percent compared to 2013. SIPRI experts attribute this drop to a reduction in a number of items in the defense budgets of the United Kingdom and the United States. Since the United States is one of the most important markets for UK defense companies (and primarily BAE Systems), the dynamics of changes in US defense spending has a certain impact on the revenue of British enterprises.
Poland and Ukraine
According to SIPRI experts, the main factor in the growth of Poland's profits from the sale of arms is the creation of the Polish Armaments Group (PAG), which under the leadership of the country's government combines production and repair facilities. PAG is the only Polish company to enter the Top 100 in 2014. It is also receiving increased profits due to the increase in Poland's defense budget.
The Ukrainian State Concern (GC) Ukroboronprom, which includes almost all enterprises of the national defense industry, suffered significant losses in 2014. GK is the only Ukrainian company included in the Top 100. In the ranking, her position has deteriorated significantly: from 58th position in 2013, she moved to 90th in 2014. During the specified period, the profit of "Ukroboronprom" decreased by 50.2 percent. The largest Ukrainian manufacturer 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
Defense companies from Brazil, India, the Republic of Korea, Turkey have appeared on the international arms market relatively recently. At the same time, SIPRI experts draw attention to the rather fast pace of their development.
The Top 100 for 2014 from the above countries included 12 companies, whose total revenue amounted to 3.7 percent ($ 14.83 billion) of the total sales of defense products. Compared to 2013, the six South Korean companies included in the 2014 ranking increased their total revenues by 10.5 percent. For the first time, Hyundai Rotem entered the ranking at 99th 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 in economic activity of South Korean companies exceeded the indicators of Indian ones, which decreased in 2014 compared to 2013 (then India was the leader among the countries whose companies were relatively recently included in the SIPRI Top 100).
Two Turkish defense companies entered the SIPRI rating for the first time, in particular Aselsan and Turkish Aerospace Industries (TAI). Between 2005 and 2014, Aselsan's revenue increased by 215 percent and TAI by 1,074 percent. According to SIPRI experts, the development of the Turkish defense industry is facilitated by significant state support, the demand for locally produced weapons and the intention of the Turkish government to equip the army with weapons of mainly national production. The increased export volumes also had a positive impact on the revenue of Turkish defense companies.
