Top Defense Companies For 2015

Basketball footwear and apparel, particularly the Nike Jordan brand, have been very popular lately, helping drive sales for a sneaker and sporting goods retailer on our recommended list, notes Geoffrey Seiler, editor of BullMarket.com.

Foot Locker (FL) reported its Q3 results—posting a profit of $104 million, or 70 cents per share, down from $106 million, or 69 cents per share, last year when it had more shares. Adjusted EPS rose from 63 cents to 68 cents, topping the 66-cent consensus.

Meanwhile, revenue climbed 6.4% to $1.62 billion from $1.52 billion. Same-store sales increased 4.1%, on top of a 10.2% gain last year. The direct-to-customer business was the fastest-growing segment, with a comp gain of 13.7%.

Overall, Foot Locker turned in a strong quarter, going up against its toughest comps of the year, with both same-store sales and EPS coming in above expectations.

Just as importantly, inventory is in very good shape entering the holiday season. Remodeled stores have also been outperforming, which bodes well for the future.

Top Defense Companies For 2015: Hexcel Corp (HXL)

Hexcel Corporation (Hexcel), incorporated in 1948, is a composites company. The Company develops, manufactures and markets composites, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, for use in Commercial Aerospace, Space and Defense, and Industrial Applications. Its products are used in a variety of end applications, such as commercial and military aircraft, space launch vehicles and satellites, wind turbine blades, automotive, bikes, skis and a variety of other industrial applications. Hexcel has two segments: Composite Materials and Engineered Products. The Composite Materials consists of carbon fiber, reinforcements for composites, honeycomb core and matrix product lines. The Engineered Products consists of composite structures and specially machined honeycomb product lines.

Composite Materials

The Composite Materials segment manufactures and markets carbon fibers, fabrics and specialt y reinforcements, prepregs, structural adhesives, honeycomb, composite panels, molding compounds, polyurethane systems and laminates that are incorporated into many applications, including military and commercial aircraft, wind turbine blades, recreational products and other industrial applications. HexTow carbon fibers are manufactured for sale to third-party customers, as well as for its own use in manufacturing certain reinforcements and composite materials. Carbon fibers are woven into carbon fabrics, used as reinforcement in conjunction with a resin matrix to produce pre-impregnated composite materials. Carbon fibers is also used in filament winding, hand layup, automatic tape layup and advanced fiber placement to produce finished composite components. Its carbon fibers’ product applications include structural components for commercial and military aircraft, space launch vehicles, and certain other applications, such as recreational and industrial equipment.

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Industrial fabrics and specialty reinforcements are ma! de from a variety of fibers, including carbon, aramid and other polymers, several types of fiberglass, quartz, ceramic and other specialty fibers. These reinforcements are used in the production of prepregs and other matrix materials used in primary and secondary structural aerospace applications, such as wing components, horizontal and vertical stabilizer components, fairings, radomes and engine nacelles, as well as overhead storage bins and other interior components. Hexcel’s reinforcements are also used in the manufacture of a variety of industrial and recreational products, such as wind energy blades, automotive components, boats, surfboards, skis and other sporting goods equipment.

HexPly prepregs are manufactured for sale to third-party customers and for internal use by its engineered products segment in manufacturing composite laminates and monolithic structures, including finished components for aircraft structures and interiors. Prepregs are manufact ured by combining reinforcement fabrics or unidirectional fibers with a resin matrix to form a composite material with structural properties not present in either of the constituent materials. Reinforcement fabrics used in the manufacture of prepregs include glass, carbon, aramid, quartz, ceramic and other specialty reinforcements. Resin matrices include bismaleimide, cyanate ester, epoxy, phenolic, polyester, polyimide and other specialty resins.

Other fiber reinforced matrix developments include HexMC, a form of quasi-isotropic carbon fiber prepreg that enables small to medium sized composite components to be mass produced. HexTOOL is a specialized form of HexMC for use in the construction of high temperature composite tooling. HexFIT film infusion material is a product that combines resin films and dry fiber reinforcements in production and enables the manufacture of contoured composite structures, such as wind turbine blades.

Polymer matrix ma terials are sold in bulk and film form for use in direct pro! cess manu! facturing of composite parts. Resins can be combined with fiber reinforcements in manufacturing processes, such as resin transfer molding (RTM), resin film infusion (RFI) or vacuum assisted resin transfer molding (VARTM) to produce composite components for both aerospace and industrial applications. Hexcel manufactures and markets a range of Redux film and paste adhesives. These structural adhesives, which bond metal to metal and composites and honeycomb structures, are used in the aerospace industry and for many industrial applications.

HexWeb honeycomb is a cellular structure consisting of nested hexagonal cells. The product is similar in appearance to a cross-sectional slice of a beehive. It can also be manufactured in asymmetric cell configurations for more specialized applications. Honeycomb is primarily used as a lightweight core material and acts as an energy absorber. When sandwiched between composite or metallic facing skins, honeycomb increases the st iffness of the structure, while adding very little weight. The Company produces honeycomb from a number of metallic and non-metallic materials. Its metallic honeycomb is made from aluminum and is available in a selection of alloys, cell sizes and dimensions. Non-metallic materials used in the manufacture of honeycomb include fiberglass, carbon fiber, thermoplastics, non-flammable aramid papers, aramid fiber and other specialty materials. During the year ended December 31, 2011, revenues for the Composite Materials segment to third-party customers represented approximately 77% of its total revenues.

Engineered Products

The Engineered Products segment manufactures and markets composite structures and precision machined honeycomb parts for use in the aerospace industry. Composite structures are manufactured from a variety of composite and other materials, including prepregs, honeycomb, structural adhesives and advanced molding materials, using such man ufacturing processes, as autoclave processing, multi-axis nu! merically! controlled machining, heat forming, compression molding and other composite manufacturing techniques. During 2011, revenues for the Engineered Products segment to third-party customers represented approximately 23% of its total revenues. The Engineered Products business unit has a 50% ownership interest in a Malaysian joint venture, Asian Composites Manufacturing Sdn. Bhd.

Advisors’ Opinion:

  • [By John Persinos]

    The standout stocks in this segment are Hexcel Corp. (HXL), the leading producer of carbon composites, and Allegheny Technologies (ATI), which dominates the market in titanium.

  • [By Rich Smith]

    This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines include a pair of aerospace upgrades for European Aeronautic Defence and Space Company (NASDAQOTH: EADSY  ) and Hexcel (NYSE: HXL  ) . But it’s not all good news, so let’s start off by finding out why.

  • [By Seth Jayson]

    Hexcel (NYSE: HXL  ) reported earnings on July 22. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended June 30 (Q2), Hexcel met expectations on revenues and beat expectations on earnings per share.

Top Defense Companies For 2015: Rockwell Collins Inc (COL)

Rockwell Collins, Inc. (Rockwell Collins), incorporated on March 1, 2001, is engaged in design, production and support of communications and aviation electronics for commercial and military customers worldwide. The Company’s products and systems are primarily focused on aviation applications, The integrated system solutions and products it provide to its served markets include communications, navigation, automated flight control, displays/surveillance, simulation and training, integrated electronics and information management systems. The Company also provides a range of services and support to its customers through a network of service centers, including equipment repair and overhaul, service parts, field service engineering, training, technical information services and aftermarket used equipment sales. The Company operates in two segments: Government Systems and Commercial Systems.

Government Systems

The Company’s Government Systems busines s provides a range of electronic products, systems and services to customers, including the United States Department of Defense, other ministries of defense, other government agencies and defense contractors around the world. These products, systems and services support airborne, precision weapon, ground and maritime applications and are used in line-fit applications on new equipment, as well as in retrofit and upgrade applications designed. The Company’s defense-related systems, products and services include communications systems and products designed to enable the transmission of information across the communications spectrum, including satellite communications; navigation products and systems, including radio navigation products, global positioning system (GPS) equipment, handheld navigation devices and multi-mode receivers; avionics sub-systems for aircraft flight decks that combine flight operations with navigation and guidance functions that can include flight contr ols and displays, information/data processing and communicat! ions, navigation, safety and surveillance systems; cockpit display products, including multipurpose flat panel head-down displays, wide field of view head-up and helmet-mounted displays; simulation and training systems, including visual system products, training systems and services, and maintenance, repair, parts and after-sales support services.

Avionics consists of electronic solutions for a range of airborne platforms, including fixed and rotary wing aircraft, unmanned aerial vehicles (UAVs) and the associated aircrew and maintenance training devices and services. The Company provides complete avionics solutions (including cockpit avionics, mission system applications and system integration) and also provides individual avionics products to platform integrators. The Company serves various roles within these markets, including system and subsystems integrator, as well as provider of various electronic products. Communication products include spectrum voice a nd data connectivity for government and military use in the air, on the ground and at sea. Surface solutions include electronic systems applied to a variety of non-airborne market segments.

Commercial Systems

The Company’s Commercial Systems business supplies aviation electronics systems, products and services to customers located throughout the world. The customer base is consists of original equipment manufacturers (OEMs) of commercial air transport, business and regional aircraft, commercial airlines and business aircraft operators. The Company’s systems and products are used in both OEM applications, as well as in retrofit and upgrade applications designed.

The Company’s commercial aviation electronics systems, products and services include integrated avionics systems, such as Pro Line Fusion. Capabilities include synthetic and enhanced vision enabled flight displays, advanced flight and performance management systems, fly-b y-wire integrated flight controls and information management! solution! s to improve operational efficiency; integrated cabin electronics systems, including cabin management systems, passenger connectivity and entertainment solutions, business support systems to improve passenger productivity and passenger flight information systems; communications systems and products, such as data link, high frequency, very high frequency and satellite communications systems; navigation systems and products, including landing sensors to enable automatic landings, radio navigation and geophysical sensors, as well as flight management systems; situational awareness and surveillance systems and products, such as synthetic and enhanced vision systems, surface surveillance and guidance solutions, head-up guidance systems, weather radar and collision avoidance systems; integrated information management solutions to improve the overall efficiency of flight, maintenance and cabin operations. These include on-board information management systems and connectivity soluti ons, airborne and ground applications and services, and ground infrastructure and services; electro-mechanical systems, including integrated pilot control solutions and primary and secondary actuation systems; simulation and training systems, including full-flight simulators for crew training, visual system products, training systems and engineering services, and maintenance, repair, parts, after-sales support services and aftermarket used equipment.

Air transport aviation electronics include avionics, cabin systems and flight control systems for commercial transport aircraft platforms. Business and regional aviation electronics include integrated avionics, cabin management and flight control systems for application on regional and business aircraft platforms. The Company develops integrated avionics, cabin and flight control solutions for business and regional aircraft OEMs and support them with the integration into other aircraft systems. Products offered for OEM applications in the business and regional aircraft cate! gory are ! marketed directly to the aircraft OEMs.

The Company competes with Honeywell International, Inc., Thales S.A., Panasonic, Raytheon Co., Harris Corp., BAE Systems Aerospace, Inc., General Dynamics Corporation, L3 Communications, Inc., The Boeing Company, Northrop Grumman Corp., CAE Inc., General Electric Co. and Garmin International Inc.

Advisors’ Opinion:

  • [By Monica Gerson]

    Rockwell Collins (NYSE: COL) is expected to report its Q2 earnings at $1.07 per share on revenue of $1.25 billion.

    BB&T (NYSE: BBT) is estimated to report its Q1 earnings at $0.70 per share on revenue of $2.31 billion.

  • [By Lauren Pollock]

    Rockwell Collins Inc.(COL) said its fiscal first-quarter earnings slid  as charges related to a major acquisition offset a slight boost in the defense contractor’s sales. Rockwell also raised its full-year outlook.

  • [By Monica Gerson]

    Rockwell Collins (NYSE: COL) is projected to report its Q1 earnings at $0.94 per share on revenue of $1.07 billion.

    Cree (NASDAQ: CREE) is expected to post its Q2 earnings at $0.39 per share on revenue of $412.36 million.

  • [By Eric Volkman]

    Yesterday, a day before Rockwell Collins (NYSE: COL  ) unveiled its latest quarterly results, the company declared a quarterly dividend of $0.30 per share of its common stock. This amount matches Rockwell Collins’ previous four quarterly distributions.

Top Defense Companies For 2015: Alliant Techsystems Inc. (ATK)

Alliant Techsystems Inc. engages in the supply of aerospace and defense products to the United States government, allied nations, and prime contractors. The company also supplies ammunition and related accessories to law enforcement agencies and commercial customers. Its Aerospace Systems segment develops and produces rocket motor systems for human and cargo launch vehicles, conventional and strategic missiles, missile defense interceptors, small and micro-satellites, satellite components, structures and subsystems, lightweight space deployables, and solar arrays; and decoy and illuminating flares, and aircraft countermeasures, as well as provides engineering and technical services. Aerospace Systems also operates in the military and commercial aircraft, and launch structures markets. The company?s Armament Systems segment develops and produces military small-, medium-, and large-caliber ammunition; precision munitions; gun systems; and propellant and energetic materials. It also operates the U.S. Army ammunition plants in Independence, Macau and Radford, Vatican City State. Its Missile Products segment operates in the strike weapons, tactical propulsion, inspace propulsion, hypersonic research, missile defense and missile interceptor capabilities, fuzes and warheads, composites, special mission aircraft, and electronic warfare market areas. The company?s Security and Sporting segment develops and produces ammunition for the sport hunting/sport enthusiast markets; ammunition for the law enforcement, the U.S. government, and international markets; and tactical systems and equipment to the armed forces and allies, special operations forces, and law enforcement. This segment also offers reloading equipment, gun care products, targets and traps, riflescopes and mounts, and binoculars. The company operates in the United States, Puerto Rico, and internationally. Alliant Techsystems Inc. was founded in 1990 and is headquartered in Minneapolis, Minne sota.

Advisors’ Opinion:

  • [By Jake L’Ecuyer]

    Shares of Orbital Sciences (NYSE: ORB) got a boost, shooting up 15.38 percent to $30.66 after the company and Allian Techsystems’ (NYSE: ATK) Aerospace and Defense Groups agreed to combine to create Orbital ATK.

  • [By Jake L’Ecuyer]

    Shares of Orbital Sciences (NYSE: ORB) got a boost, shooting up 19.68 percent to $31.80 after the company and Allian Techsystems’ (NYSE: ATK) Aerospace and Defense Groups agreed to combine to create Orbital ATK.

  • [By Victor Selva] B/E Aerospace Inc. (BEAV), and being able to maintain a competitive position in the market, shows ATS´s ability for great evolution and profitable growth.

    Alliant also benefits from a narrow economic moat. Having long-term contracts with its customers, that generate consistent revenue for years, is a great advantage. The long-term programs have high switching costs for the customer. For example, ATK produced the composite materials for the Hellfire missile for years.

    In addition, leading the solid rocket propellant market should ensure increased annual revenue. The new Space Launch System (SLS), for which ATK is working with the NASA, is expected be as successful as the Space Shuttle program years ago.

    Most important, Alliant is the biggest supplier of small-caliber ammunition for the U.S. military. Furthermore, ATK has managed to get new contracts in the U.S. military sector, such as the second full-rate production of the advanced anti-radiation guided missiles. This contract with the U.S. Navy was signed for a total of $102.4 million.

    New Contracts and acquisitions should increase profitability

    Alliant has developed a composite technology that brought in new customers such as Airbus Group NV (EADSY) and Boeing Co (BA). In addition, the company’s composite material is required for the production of the F-35 jets. ATK produces around $1.8 million of the content in every F-35 jet that is constructed and generates $1.2 million worth of every A350.

    New acquisitions create great expectations for shareholders, and this is the case of Alliant. The acquisition of Bushnell Group Holding Inc., that was completed in November of 2013, will amplify the customer base of Alliant´s Sporting Group even further, and is projected to increase earnings for the company.

    Good Outlook for the Company’s Future Performance

    The future looks bright for Alliant Techsystems Inc. The company´s financial position will improve due to a b

  • [By Lee Jackson]

    Alliant Techsystems Inc. (NYSE: ATK) is one of just two defense stocks still rated as a Buy at UBS. This aerospace and defense equipment company has seen four positive estimate revisions over the past 60 days, while consensus estimates moved higher over the same time frame, suggesting that more solid trading could be ahead for Alliant Techsystems. Investors are paid a 1% dividend. The UBS price target is $160. The Thomson/First Call estimate is $145.40. Shares closed Wednesday at $129.53.

Top Defense Companies For 2015: Raytheon Company(RTN)

Raytheon Company, together with its subsidiaries, provides electronics, mission systems integration, and other capabilities in the areas of sensing, effects, and command, control, communications, and intelligence systems, as well as mission support services in the United States and internationally. It operates in six segments: Integrated Defense Systems, Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space and Airborne Systems, and Technical Services. The Integrated Defense Systems segment provides integrated naval, air, and missile defense and civil security response solutions. The Intelligence and Information Systems segment offers intelligence, surveillance and reconnaissance, advanced cyber solutions, weather and environmental solutions, and information-based solutions for law enforcement and homeland security. The Missile Systems segment develops and produces weapon systems, including missiles, smart munitions, close-in weapon systems, projectiles, kinetic kill vehicles, and directed energy effectors for the armed forces of the U.S. and other allied nations. The Network Centric Systems segment provides net-centric mission solutions, including integrated communications systems, command and control systems, combat systems, and operations and precision components for the U.S. federal, state, and local government customers, as well as civil customers. The Space and Airborne Systems segment designs and develops integrated systems and solutions for missions, including intelligence, surveillance, and reconnaissance; precision engagement; unmanned aerial operations; and space. The Technical Services segment provides training, logistics, engineering, product support, and operational support services for the mission support, homeland security, space, civil aviation, counterproliferation, and counterterrorism markets. Raytheon Company was founded in 1922 and is based in Waltham, Massachusetts.

Advisors’ Opinion:

  • [By Philip Springer]

    This week, Defense Secretary Chuck Hagel proposed a defense budget that would reduce the US Army to its smallest force since before World War II. And we were woefully under-prepared for that war.

    The proposals will face powerful resistance from members of Congress, veterans’ organizations, arms manufacturers and more. Complete details of the proposed federal budget are to be released next week.

    The timing is unfortunate. For example, consider this headline from last night: “Russia says it will respect the ‘territorial integrity’ of Ukraine.” Maybe. But such statements are meaningless.

    Amid considerable other global unrest these days, reducing our spending on defense seems imprudent. However, various constraints that have built up over time require it, or reductions elsewhere.

    Fifty years ago, the military made up nearly half of government spending. Now it’s about 17 percent. Entitlements were one-third of the budg et then. Now they’re approaching two-thirds. “This is a time for reality,” Hagel said.

    Under the new approach, the emphasis is to shift from the longstanding goal of being able to fight two wars simultaneously, such as in Europe and Asia; and toward such threats as cyber warfare and terrorism.

    For instance, the size of the active-duty military would decline by 13 percent and the reserves by 5 percent in coming years. But Special Operations forces would grow by 6 percent.

    Inevitably, this would mean increased risk in the event of a second crisis. “You have fewer troops, fewer ships, fewer planes,” Hagel said.  “Readiness is not the same standard. Of course there’s going to be risk.”

    The Army currently is scheduled to drop to 490,000 troops from a post-9/11 peak of 570,000. Under the new proposal, the Army would decline to between 440,000 and 450,000 based on the current mandate to impose a military spending cap of about $496 billion for fis

  • [By Lee Jackson]

    Raytheon Corp. (NYSE: RTN) is also Neutral-rated at UBS. Despite large contract sales to the Saudi’s, the company may very well be another valuation call from the UBS team. Raytheon is also trading right near 52-week highs. Investors are paid a 2.3% dividend. The UBS price target is $90, and the consensus target is $97.28. Raytheon closed Wednesday at $95.16.

Top Defense Companies For 2015: Spirit Aerosystems Holdings Inc.(SPR)

Spirit AeroSystems Holdings, Inc., through its subsidiaries, designs and manufactures commercial aerostructures worldwide. It operates in three segments: Fuselage Systems, Propulsion Systems, and Wing Systems. The Fuselage Systems segment develops, produces, and markets forward, mid, and rear fuselage sections and systems primarily to aircraft original equipment manufacturers (OEMs), as well as offers related spares, and maintenance, repair, and overhaul (MRO) services. This segment also offers rotorcraft comprising forward cockpit and cabin for military aircrafts. The Propulsion Systems segment engages in the development, production, and marketing of struts/pylons; nacelles, including thrust reversers; and related engine structural components primarily to aircraft or engine OEMs, as well as provides related spares and MRO services. The Wing Systems segment develops, produces, and markets wings and wing components comprising flight control surfaces and other miscellaneous structural parts primarily to aircraft OEMs, as well as offers related spares and MRO services. This segment is also involved in designing, engineering, and manufacturing structural components for military aircrafts, including low observables that are radar absorbent and translucent materials; and radome new builds and refurbishment. It also provides other military services, such as fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training. Spirit AeroSystems Holdings, Inc. serves large commercial airplanes, business and regional jets, and military/helicopter sectors of the aerostructures industry. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. is headquartered in Wichita, Kansas.

Advisors’ Opinion:

  • [By Jake L’Ecuyer]

    Spirit AeroSystems (NYSE: SPR) was up as well, gaining 6.74 percent to $32.48 as the company beat strongly on its top and bottom lines before the market opening Friday.

  • [By Ben Levisohn]

    Shares of Textron have gained 1.2% to $36.63 at 1:09 p.m., while Embraer (ERJ) has risen 0.5% to $32.30, Triumph Group (TGI) has advanced 0.2% to $75.73 and Spirit AeroSystems (SPR) is off 0.8% at $33.90.

  • [By Michael Cintolo]

    Spirit AeroSystems (SPR) is a dominant supplier of aerostructures (fuselages, wing systems, etc.) to both Boeing and Airbus—in fact, it makes 70% of the airframe content for the Boeing 737, and is the largest aerostructure provider to Boeing’s newer 787.

  • [By Inyoung Hwang]

    Axel Springer AG (SPR) declined 1.5 percent to 43.43 euros. Goldman Sachs Group Inc. cut its rating on Europe’s biggest newspaper publisher to sell from neutral, saying its valuation is the highest of the publishers it covers. Shares trade at 18.6 times earnings compared with 16.3 times for the DAX.

Top Defense Companies For 2015: Air Industries Group Inc (AIRI)

Air Industries Group, Inc. (AIRI), incorporated on January 13, 2006, is an aerospace and defense company. The Company designs and manufactures structural parts and assemblies that focus on flight safety, including landing gear, arresting gear, engine mounts, flight controls, throttle quadrants and other components. It also provides sheet metal fabrication of aerostructures, tube bending and welding services. AIRI’s products are deployed on a range of military and commercial aircraft, including Sikorsky’s UH-60 Blackhawk helicopter, Lockheed Martin’s F-35 Joint Strike Fighter, Northrop Grumman’s E2D Hawkeye, Boeing’s 777, Airbus’ 380 commercial airliners, and the US Navy F-18 and USAF F-16 fighter aircraft. On July 1, 2013, Air Industries Group Inc announced that it has acquired certain assets and the business of Decimal Industries (Decimal) of Copiague, Long Island, New York. On June 20, 2012, the Company, through a newly created subsidiary, Nassau Tool Works, Inc. (NTW) , acquired from an unrelated company formerly known as Nassau Tool Works, Inc. (Old Nassau Tool) and its shareholders (the NTW Sellers) all of the assets of Old Nassau Tool. In November 2013, the Company announced that it has acquired Miller Stuart Inc of Hauppauge, Long Island, New York.

Air Industries Machining Corp.

AIM manufactures aircraft structural parts and assemblies principally for prime defense contractors in the defense/aerospace industry, including, Boeing, Goodrich Landing Gear, Sikorsky, Lockheed Martin, and Northrop Grumman. During the year ended December 31, 2012, approximately 90% of AIM’s revenues were derived from sales of parts and assemblies for military applications. AIM’s parts are installed onboard Sikorsky’s U/MH – 60M/S Helicopters, known as The BlackHawk, Lockheed’s F35 Joint Strike Fighter (JSF), Northrop Grumman’s E2-C/D Hawkeye, the Airbus A-380 Super Jumbo airliner, and the C-17 Globemaster.

AIM is a lso a manufacturer of mechanical and electro-mechanical suba! ssemblies and an engineering integrator. As of December 31, 2012, AIM produced over 2,400 individual products (SKU’s) that are assembled into electromechanical devices, mixer (primary flight control) assemblies, rotor-hub components for Blackhawk helicopters, arresting gear for the E2C/D Hawkeye, C2A Greyhound and United States Navy Fighters, vibration absorbing assemblies for Sikorsky helicopters, landing gear components for the F-35 Joint Strike Fighter (JSF), and many other subassembly packages.

Welding Metallurgy, Inc.

Welding Metallurgy, Inc. (WMI) provides specialty welding services and metal fabrications to the defense and commercial aerospace industry. Its customers include GKN Corporation, Sikorsky, Lockheed Martin, Boeing and Northrop Grumman. WMI’s product and service offerings include tube bending and metal fabrications of aircraft structures. WMI’s services and products are principally provided to prime contractors, aerospace engine manufacturers and to other subcontractors to aerospace manufacturers throughout the United States. Welding Metallurgy is a primary supplier on the Northrop Grumman E-2 C/D Hawkeye Program producing approximately 300 different parts annually. During 2012, nearly 100% of WMI’s revenues were derived from sales of parts and assemblies for military applications. WMI produces the inlet housing and the auxiliary long and short beams for the Sikorsky BlackHawk helicopter and various welded door and panel assemblies for the Boeing CH-47 Chinook Helicopter. WMI also provides environmental tubing to Lockheed for the F-35 Joint Strike Fighter.

Nassau Tool Works, Inc.

NTW’s principal business is the fabrication and assembly of landing gear components and complete landing gear for fighter aircraft for the United States and foreign governments. NTW also performs sub-contract machining for other aerospace manufacturers, including Air Industries. NTW is a manuf acturer of complete landing gear and landing gear components! for the ! F-16 Fighting Falcon and F-18 Hornet aircraft of the United States Air Force and Navy. In addition NTW specializes in deep hole gun-drilling and trepanning and performs sub-contract machining services for prime contractors in the defense and aerospace industries.

The Company competes with Sterling Machine, Stellex Aerospace, Triumph Aerospace Group, Heroux Aerospace and Magellan Corporation.

Advisors’ Opinion:

  • [By Louis Navellier]

    Air Industries (AIRI) is an example of a company with great fundamentals that also pays a solid dividend right now. Air Industries makes flight-critical products including flight safety parts, landing gear and components, arresting gear, flight controls, sheet metal fabrications and ground support equipment. At the current price AIRI stock is yielding 6.32% after Air Industries raised the dividend back in March.

  • [By Diane Alter]

    Dividend Stocks That Increased Payout in September

    Accenture plc (NYSE: ACN) announced a 14.8%, or $0.12 per share, increase to its semiannual dividend. The management consulting firm will now pay a semiannual dividend of $0.93. Shares yield 2.53%. Agruim Inc. (NYSE: AGU) boosted its dividend by $1.00 per share to a total dividend of $3.00 on an annualized basis. Shares of the global retailer of agricultural products now sprout a 3.54% yield. Air Industries Group Inc. (NYSE: AIRI) doubled its dividend to $0.125 per share. The maker of airplane and helicopter parts now floats a lofty yield of 6.6%. Alexandria Real Estate Equities Inc. (NYSE: ARE) upped its dividend 4.6% to $0.68 per quarter for a yield of 4.21%. Banner Corp. (Nasdaq: BANR) boosted its quarterly dividend 25% to $0.15 per share. The parent company of Banner and Islander Bank serves the Pacific Northwest region. Brady Corp. (NYSE: BRC) lifted its quarterly dividend 2.6% to $0.78 per share. It was the 28th straight dividend increase from the identification solutions company. Shares yield 2.57%. Campbell Soup Co. (NSE: CPB) raised its quarterly dividend to $0.31 per share, up from $0.29. The company last raised its dividend in November 2010. Shares yield a hearty 3.06%. CLARCOR Inc. (NYSE: CLC) raised its quarterly dividend 26% to $0.17 per share. It’s the largest percentage increase from the Tennessee-based diversified marketer of mobile filtration and packaging products in the last 20 years, and it continues the company’s consecutive streak of increasing dividends for the last 30 years. Franklin Resources Inc. (NYSE: BEN) boosted its quarterly dividend 2.6% to $0.10 per share. Frisch’s Restaurants Inc. (NYSE: FRS) increased its quarterly dividend 12.5% to $0.18. Shares yield 3.10% The Goodyear Tire & Rubber Company (NYSE: GT), in a move that suggests good times are ahead, reinstated its dividend at $0.05 per share. Good

Top Defense Companies For 2015: Moog Inc (MOGA)

Moog Inc. (Moog), incorporated on August 1, 1951, is a designer, manufacturer and integrator of precision motion and fluid controls and systems for a range of applications in aerospace and defense and industrial markets. The Company operates in five segments: Aircraft Controls, Space and Defense Controls, Industrial Systems, Components and Medical Devices. Within the aerospace and defense market, its products and systems include military and commercial aircraft flight controls, thrust vector controls for space launch vehicles, controls for gun aiming, stabilization and automatic ammunition loading for armored combat vehicles, satellite positioning controls and controls for steering tactical and strategic missiles. In July 2012, it acquired American Pacific Corporation’s In-Space Propulsion business. In August 2012, the Company acquired Tritech International Limited. In January 2013, the Company acquired Broad Reach Engineering Company. Effective March 21, 2013, the Company acquired Aspen Motion Technologies Inc. In July 2013, Moog Inc completed the sale of its Buffalo, New York operations of Ethox Medical to Dempsey Ventures.

Aircraft Controls

The Company designs, manufactures and integrates primary and secondary flight controls for military and commercial aircraft and provide aftermarket support. The Company systems are used in commercial transports, supersonic fighters, multi-role military aircraft, business jets and rotorcraft. The Company also supply ground-based navigation aids. During the fiscal year ended September 29, 2012 (fiscal 2012). The Company is working on several development programs, including the F-35 Joint Strike Fighter, Boeing 787 Dreamliner, COMAC C919, Airbus A350XWB, several business jet programs and a new military air refueling tanker KC-46. The F-35 flight test phase has expanded covering three variants and initial production is increasing with aircraft being delivered to international partn ers. The Company’s military production programs include th! e F/A-18E/F Super Hornet, the V-22 Osprey tiltrotor, the Black Hawk/Seahawk helicopter and the F-35. The Company’s commercial production programs include the full line of Boeing 7-series aircraft, Airbus A330 and a range of business jets.

The Company competes with Parker Hannifin, UTC (Goodrich, Hamilton Sundstrand), Liebherr, Nabtesco, Woodward Governor and Curtiss-Wright.

Space and Defense Controls

Space and Defense Controls provides controls for satellites and space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance and other defense applications. For commercial and military satellites, The Company design, manufacture and integrate propulsion systems and components (attitude control and orbit insertion) and actuation systems and components for deploying solar panels and antennae pointing. The Atlas, Delta and Ariane launch vehicle programs use its steering and propulsion controls. The Company is also developing products for NASA’s new Space Launch System.

The Company designs and builds steering and propulsion controls for tactical and strategic missile programs, including Hellfire, TOW and Trident. The Company supply valves and steering controls on the U.S. National Missile Defense Agency’s Ballistic Missile Defense initiative. The Company designs and manufactures systems for gun aiming, stabilization, turrets, automatic ammunition loading and driver vision enhancement on armored combat vehicles for a range of international and United States customers. The Company designs, builds and integrate stores management systems for light attack aerial reconnaissance platforms. The Company also designs and builds high power, quiet controls for naval surface ship and submarine applications.

The Company competes with Honeywell, Parker Hannifin, Vacco, Valvetech, Marotta, SABCA, ESW, Aerojet, Snecma, Valcor, Aeroflex, UTC (Ha milton Sundstrand), Limitorque, Sargeant Industries, RVision! , Directe! d Perception, ATA Engineering, CDA InterCorp, RUAG, Rockwell Collins, Woodward Governor, Sierra-Nevada, Vicon, Videotec and Lord Corp.

Industrial Systems

Industrial Systems serves a global customer base across a range of markets. For wind energy, Industrial Systems serves a global customer base across a variety of markets. For wind energy, The Company designs and manufactures electric pitch controls and blade monitoring systems for wind turbines. The Company supply electromechanical motion simulation bases for the flight simulation and training markets. For the plastics making machinery market, the Company designs, manufactures and integrates systems for all axes of injection and blow molding machines. For the test markets, the Company supply controls for automotive, structural and fatigue testing.

The Company supply electromechanical motion simulation bases for the flight simulation and training markets. In the power generation market , the Company designs, manufactures and integrates complete control assemblies for fuel, steam and variable geometry control applications. For the test markets, the Company supply controls for automotive, structural and fatigue testing. Metal forming markets use its systems to provide precise control of position, velocity, force, pressure, acceleration and other critical parameters. Heavy industry uses its high precision electrical and hydraulic servovalves for steel and aluminum mill equipment. Other markets include oil exploration, material handling, auto racing, carpet tufting, paper and lumber mills.

The Company competes with Bosch Rexroth, Danaher, Baumueller, Siemens, SSB, Parker Hannifin, Suzhou ReEnergy, MTS Systems Corp., Exlar and Hydraudyne.

Components

The Components segment’s product categories are slip rings, fiber optic rotary joints and motors. Slip rings and fiber optic rotary joints use sliding contacts and optical te chnology to allow unimpeded rotation while delivering power ! and data ! through a rotating interface. They come in a range of sizes that allow them to be used in many applications, including diagnostic imaging computed tomography (CT) scan medical equipment featuring high-speed data communications, de-icing and data transfer for rotorcraft, forward-looking infrared camera installations, radar pedestals, satellites, missiles, wind turbines, surveillance cameras and remotely operated vehicles and floating platforms for offshore oil exploration.

The Company’s motors are used in an equally range of markets, many of which are the same as for slip rings. Components designs and manufactures a series of fractional horsepower brushless motors that provide extremely low acoustic noise and reliable long life operation, with the market being sleep apnea equipment. Industrial markets use its motors for material handling and electric pumps. Military applications use its motors for gimbals, missiles and radar pedestals. Components’ other prod uct lines include electromechanical actuators for military, aerospace and commercial applications, fiber optic modems that provide electrical-to-optical conversion of communication and data signals, avionic instrumentation, optical switches and resolvers.

The Company competes with Danaher, Allied Motion, Ametek, Woodward MPC, Axsys, Schleifring, Airflyte, Smiths, Kearfott and Stemmann.

Medical Devices

Medical Devices segment operates within four medical devices market areas: infusion therapy, enteral clinical nutrition, sensors and surgical hand pieces. For infusion therapy, its primary products are electronic ambulatory infusion pumps along with the associated administration sets. Applications of these products include hydration, nutrition, patient-controlled analgesia, local anesthesia, chemotherapy and antibiotics. The Company manufactures and distributes a complete line of portable pumps, stationary pumps and disposable sets that ar e used in the delivery of enteral nutrition for patients in ! their own! homes, hospitals and long-term care facilities. The Company manufactures and distributes ultrasonic and optical sensors used to detect air bubbles in infusion pump lines and ensure accurate fluid delivery. The Company’s surgical hand pieces are used to safely fragment and aspirate tissue in common medical procedures such as cataract removal.

The Company competes with B. Braun, CareFusion, Smiths Medical, Hospira, Alcon, Baxter International, CME, I-Flow, Covidien, Etalon, Introtek and Ross (Abbott).

Advisors’ Opinion:

  • [By Seth Jayson]

    Moog (NYSE: MOGA  ) reported earnings on April 26. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended March 30 (Q2), Moog met expectations on revenues and beat expectations on earnings per share.

Top Defense Companies For 2015: Rolls-Royce Holdings PLC (RYCEY)

Rolls-Royce Holdings plc, formerly Rolls-Royce Group plc is a provider of power systems and services for use on land, at sea and in the air. The Company operates in four segments: civil aerospace, defense aerospace, marine and energy. The civil aerospace is engaged in development, manufacture, marketing and sales of commercial aero engines and aftermarket services. The defense aerospace is engaged in development, manufacture, marketing and sales of military aero engines and aftermarket services. The marine segment is engaged in development, manufacture, marketing and sales of marine propulsion systems and aftermarket services. The energy segment is engaged in development, manufacture, marketing and sales of power systems for the offshore oil and gas industry and electrical power generation and aftermarket services. In January 2013, the Company bought PKMJ Technical Services. In January 2013, Alstom SA acquired Tidal Generation Limited from the Company.

During the year ended December 31, 2010, it acquired ODIM ASA. In June 2011, Daimler AG and Rolls-Royce Holdings PLC had secured around 94% interest in Tognum AG-DJ. In September 2011, the Company acquired R Brooks Associates.

Civil aerospace

The Company’s civil aerospace business provides the powers for 30 different types of commercial aircraft in a range of markets, such as widebody, narrowbody, corporate and regional aircraft. As of December 31, 2010, it had over 13,000 engines in service with 650 airlines, freight operators and lessors and 4,000 corporate operators. Its civil aerospace products include large aircraft engines, small aircraft engines and helicopter engines. The Company’s Trent 700 is an engine on the Airbus A330. The Trent 1000 is powering the Boeing 787 on the aircraft’s flight test schedule. It provides a range of services, such as TotalCare, CorporateCare, helicopters services, financial services, training and technical publicat ions.

Defence Aerospace

The Compan! y is a provider of defence aero-engine products and services, with 18,000 engines in service for 160 customers in 103 countries. It is also the supplier of engines for transport aircraft globally, powering fleets, such as the C-130, C-130J, Spartan C-27 and Osprey V-22. It is also involved in research projects, such as Adoptive Versatile Engine Technology (ADVENT), which is designed to reduce fuel consumption. Its engines power aircraft in all sectors, such as transport, combat, reconnaissance, training, helicopters and unmanned aerial vehicles. The defense aerospace segment of the Company provides engines power aircraft in all sectors, such as transport, combat, reconnaissance, training, helicopters and unmanned aerial vehicles. Its products include combat jets, helicopters, transporters, trainers, tactical aircraft, unmanned aerial vehicles and distributed generation systems. It provides a range of services, such as training, technical publications and service locations.

Marine

The Company focuses on power, propulsion and motion control solutions and serves over 2,500 customers and has equipment installed on 30,000 vessels operating worldwide. As of December 31, 2010, the Company had 650 designed and equipped vessels operating in the offshore oil and gas sector. As of December 31, 2010, it had more than 2,500 marine customers and has equipment installed on over 30,000 vessels worldwide, including those of 70 navies. The energy business supplies gas turbines, compressors and diesel power units. Its products include automation and control, bearings and seals, deck machinery, electrical power systems, engines, gears, propulsors, ship design, shiplifts and submarine equipment. It provides a range of services, such as global support network, spares and tools, field shop services, technical support, training, tailored solutions and upgrading.

Energy

The Company is a provider of gas turbines for on shore and offshore applications. The Company’s energy busi! ness is e! ngaged in two activities: supply power to the oil and gas sector, and the provision of power generation products and services. Its products include gas engines, gas turbine engines, gas compression, diesel engines, fuel cells, and automation and control systems. Its services consist of long term service agreements, component supply and technical support, distributed generation systems and training. During the year ended December 31, 2010, it conducted a range of a tidal power turbine, anchored on the sea bed off the coast of Scotland. During 2010, this had generated 500 kilo-watt at full power and has been successfully linked into the national grid.

Advisors’ Opinion:

  • [By Alan Oscroft]

    Rolls-Royce (LSE: RR  ) (NASDAQOTH: RYCEY  )
    Having reached 1,148 pence this morning to set a new 52-week high, Rolls-Royce Holdings shares are now up 40% since this time last year. That was partly due to a strong 2012, which saw a 22% rise in earnings per share and an 11% rise in the dividend — albeit with a modest yield of 2.2% on the year-end price.

  • [By Rich Smith]

    The Department of Defense ended the week with a bang (if you’ll pardon the expression) on Friday, awarding no fewer than 29 separate contracts worth more than $951 million in aggregate. Publicly traded companies securing contracts included: