Michael K. Lowry

Michael K. Lowry
Articles
How TPC Works

Rankings of publicly traded aerospace and defense contractors are the result of a composite scoring of four equally weighted performance categories that place significant emphasis on operating excellence. Category weightings are based on results of two surveys conducted by Aviation Week with senior management of companies generating annual revenues greater than $1 billion.

The four categories are:

Defense Budget Woes Waylay Midyear Top Performing Companies Scores 

It appears that defense budget pressures in the U.S. and Europe are starting to bite into profits — a reality reflected in midyear declines in the Aviation Week Top-Performing Companies (TPC) scores of several major defense contractors.

Halfway through 2011, defense contractor Lockheed Martin maintained the top spot in the TPC study rankings for companies with annual revenues of more than $20 billion, but its TPC score dropped to 85 from 88 at the end of 2010. Raytheon and Northrop Grumman saw even bigger declines.

Defense Budget Woes Waylay Midyear TPC Scores 

Defense budget pressures in the U.S. and Europe are starting to bite into the profits of several aerospace companies—a reality reflected in midyear declines in Aviation Week's 16th annual Top-Performing Companies (TPC) scores of major industry contractors.

Halfway through 2011, defense contractor Lockheed Martin maintained the top spot in the TPC study rankings for companies with annual revenues of more than $20 billion, but its TPC score dropped to 85 from 88 at the end of 2010. Raytheon and Northrop Grumman turned in even bigger declines.

Defense Budget Woes Waylay Mid-Year TPC Scores 

It appears that defense-budget pressures in the U.S. and Europe are starting to bite into profits — a reality reflected in midyear declines in the Top-Performing Companies scores of several major defense contractors.

Halfway through 2011, defense contractor Lockheed Martin maintained the top spot in the TPC study rankings for companies with annual revenues of more than $20 billion, but its TPC score dropped to 85 from 88 at the end of 2010. Raytheon and Northrop Grumman turned in even bigger declines.

Methodology For The 2010 TPC Scoring 

This year’s rankings of publicly traded aerospace and defense contractors are the result of a composite scoring of four equally weighted performance categories that place significant emphasis on operating excellence. Category weightings are based on results of two surveys conducted by Aviation Week with senior management of companies generating annual revenues greater than $1 billion.

AWIN Exclusive: Top-Performing Companies Quarterly Rankings Update 

An improved performance in the Financial Health category propelled Lockheed Martin back to the top of the largest A&D companies for the quarter ended Sept. 30, 2009 after an uncharacteristic third-place ranking in the second quarter. Key areas of improvement identified by the TPC tool included the “debt service cover” and “fixed charge” metrics that are nested in the Financial Health Category. General Dynamics experienced weaker results across all four TPC scoring categories, but remained strong enough for a second-place ranking.

How It Works: A Primer on TPC Scoring 

This year’s rankings of publicly traded aerospace and defense contractors are the result of a composite scoring of four equally weighted performance categories that place significant emphasis on operating excellence. The four performance categories are:

How the TPC Scores Are Calculated 

This year’s rankings of publicly traded aerospace and defense contractors are the result of a composite scoring of four equally weighted performance categories that place significant emphasis on operating excellence. The four categories are:

How Top-Performing Companies Are Selected 

This year’s rankings of publicly traded aerospace and defense contractors and airlines are the result of a composite scoring of four performance categories that place significant emphasis on operating excellence. The four categories are:

Besting the Best 

This year's top performers from the publicly traded airline study were identified, in large part, by results derived from CSFB HOLT's cash flow return on investment computation, a metric that gauges how efficiently a company is employing its assets. Predictably, all five of the winners carried rates that were listed in the top 10 of the 60 airlines surveyed.

But were these managers really as good as their cash flow return on investments (CFROIs)?

Inaugural Ranking of Non-Publicly Traded U.S.-Based Airlines 

The Top-Performing Companies study for 2005 was expanded to include 29 non-publicly traded U.S.-based airlines. The ranking included privately owned or wholly owned affiliates of larger publicly traded U.S. carriers doing business under separate operating certificates.

Overall results clearly separated the U.S. airline industry's strong business segment from its weak counterpart. Seven of the 10 freight airlines surveyed this year were ranked in the top 10. Only six passenger airlines (out of 19) ranked higher than the median score for the entire group.

Asian Airlines Dominate Top-Performing Companies Rankings 

Record-high fuel prices and brutal fare competition in 2004 eclipsed the effects of the 2003 Asian health crises, and drove some airlines to fail, others to file for bankruptcy protection or pursue out-of-court restructuring.

National Airlines Step 

This past year has been among the most turbulent in recent aviation history--churned by a tripling of fuel prices, higher interest rates, volatile currency fluctuations, merger overtures among major U.S. and European-based carriers, and further competitive pressure in North America, Europe and Asia. It has proven to be a dynamic but challenging period for most airlines.

Top-Ranked Airlines Share Entrepreneurial Drive 

Unbridled change is continuing to sweep across the commercial air transport industry, as reflected in the results of the 1999 Index of Competitiveness.

Two of this year's top-ranked airlines were runners-up in 1998. Another carrier vaulted from an obscure ranking last year to achieve the highest score within its peer group.

 
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