Deloitte predicts flat growth in 2010

For the companies that have issued quarterly financial statements in 2010, sales-revenue growth was -1.01 per cent, operating profit growth was -1.92 per cent and operating margin growth was -0.92 per cent.

Tom Captain, global leader of aerospace and defence at Deloitte, said: ‘Despite these growth challenges, the industry remains resilient and is performing better than many other sectors hit hard by the recession.

‘The imperative now will be to cut costs and grow top-line revenue in new areas to demonstrate to global markets the ability to grow profits again.’

The commercial aircraft industry is rebounding from its 15-year sales low of 2009. If the recovery continues into the second half of 2010, total orders for commercial aircraft are expected to be in the 800-unit range for the year.

These sentiments were echoed last week by Ian Godden, chairman of ADS, the UK’s aviation, defence and security trade organisation, when he said that Q2 2010 marks ‘the worst of the trough’ in overall orders for British companies.