10. United Technologies (NYSE: UTX)
> Arms sales 2010: $11.41 billion
> Total sales 2010: $54.33 billion
> Arms sales as pct. of total sales: 21%
> Total profit: $4.71 billion
> Total employment: 208,220
> Sector: Aircraft, Electronics, Engines
Hartford, Conn.-based United Technologies is a multicompany industrial conglomerate with subsidiaries that include elevator company Otis and refrigeration giant Carrier. The company also manufactures components for use in military aircraft and vehicles. One of its subsidiaries, Pratt & Whitney, builds aircraft engines for dozens of different fighter jets. Among the jets equipped with Pratt & Whitney engines are the F-22 Raptor and the F-35 Joint Strike Fighter, the latter of which is being produced by the hundreds for nine different countries. United Technologies is also heavily involved in aircraft manufacturing. It owns Sikorsky, one of the largest helicopter manufacturers in the world. Sikorsky builds the popular UH-60 Black Hawk. Roughly one-fifth of United Technologies’ total revenue came from arms sales in 2010.
9. L-3 Communications (NYSE: LLL)
> Arms sales 2010: $13.07 billion
> Total sales 2010: $15.68 billion
> Arms sales as pct. of total sales: 83%
> Total profit: $0.96 billion
> Total employment: 63,000
> Sector: Electronics, Services
L-3 Communications is a top contractor in fields such as communications, intelligence and surveillance. According to the company, its customers include nearly every defense, intelligence and security agency in the U.S., as well as allied foreign governments and commercial customers. Among its many products, the company produces the L-3 SmartDeck, a fully integrated cockpit system, and the AVCATT mobile aviation training simulator, designed for the U.S. Army. Although the company’s arms sales have increased steadily for a number of years, their rate of increase slowed significantly between 2009 and 2010. The company’s rank among largest arms producers fell from 2007’s eighth to ninth in 2010.
> Arms sales 2010: $14.41 billion
> Total sales 2010: $24.76 billion
> Arms sales as pct. of total sales: 58%
> Total profit: $0.74 billion
> Total employment: 75,200
> Sector: Aircraft, Artillery, Electronics, Missiles, Military vehicles, Small arms/ammunition
Italian defense contractor Finmeccanica is the largest high-tech industrial group in Italy. Partially owned by the Italian government, the conglomerate has a large array of products in six areas: aeronautics, helicopters, defense systems and electronics, space, transportation and energy. The company has formed dozens of joint ventures in Europe and the rest of the world. Notable Finmeccanica enterprises include helicopter manufacturer Augusta Enterprises, missile manufacturer MBDA and EuroTorp, the world’s leading antisubmarine torpedo manufacturer. In 2007, Finmeccanica was the number nine weapons manufacturer in the world. In 2010, it moved to eighth, with a 46% increase in sales over that time.
> Arms sales 2010: $16.36 billion
> Total sales 2010: $60.60 billion
> Arms sales as pct. of total sales: 27%
> Total profit: $0.73 billion
> Total employment: 121,690
> Sector: Aircraft, Electronics, Missiles, Space
European company EADS, short for European Aeronautic Defence and Space Company N.V., is the second of three non-U.S. companies on this list. The corporation, which includes major subsidiaries such as Airbus, is a leader in aerospace and defense products. EADS has a 37% share in missile manufacturer MBDA, and is one of the companies responsible for the development of the Eurofighter Typhoon fighter jet. Only 27% of EADS’s sales are arms sales, which is the second-smallest share among the largest arms-producing companies. The company has a major presence in markets in the Middle East, North America, Europe and more.
6. Raytheon (NYSE: RTN)
> Arms sales 2010: $22.98 billion
> Total sales 2010: $25.18 billion
> Arms sales as pct. of total sales: 91%
> Total profit: $1.88 billion
> Total employment: 72,400
> Sector: Electronics, Missiles
Raytheon is a Cambridge, Mass.-based American defense contractor. It is the world’s largest manufacturer of guided missiles and produces such widely used weapons as the AIM-7 Sparrow missile, the AIM-9 Sidewinder missile and the BGM-109 Tomahawk. The company is also responsible for the Air Warfare Simulation program used by the U.S. Air Force. In 2010, the company had nearly $23 billion in arms sales, more than 90% of its total revenue for the year. These sales were up 17% from 2007.