ADM Top 40: Thales on top in buoyant defence sector | ADM Dec 06/Jan 07

By Katherine Ziesing

For the first time, ADI Limited does not appear in ADM's Top 40.

The former mainstay of the ADM Top 40 Defence Contractors has been absorbed into Thales Australia, along with subsidiaries Thales Training & Simulation and Thales Underwater Systems.

The new and improved Thales Australia only came to be late in 2006, thanks to the go ahead from Treasurer Peter Costello on the recommendation of the Foreign Investment Review Board.

Boasting over 3000 employees in its six business groups, Thales Australia clinches the no.1 spot with $705.1 million, only $25 million ahead of Tenix Defence's $680 million in second place.

Completing the trifecta is perennial third place getter, BAE Systems Australia.

Five of the top 10 SMEs also make the top 40 with Rockwell Collins, CAE Australia, Ball Solutions Group, Rosebank Engineering and Sonartech Atlas playing with the big boys.

As always, the race has been a close run event, with minimal changes to the top 10 but some surprises nonetheless.

Raytheon Australia moves up a spot to no.4, Boeing Australia moves to no.5 and Australian Aerospace, last year's no.4, drops to no.6. A $47 million increase in turnover sees Spotless hold on to the no.7 spot.

Last year's no. 13, KAZ has retired from the race but networked centric warfare specialist General Dynamics Australia has appeared for the first time at no. 15 with $106 million to its name.

The total turnover for the top 40 this year is $6.148 billion, up 12.7% from last year or $698 million.

All of the top 10 have made gains compared with last year but the rate of growth has varied considerably between companies.

Again, Austal was the one to watch, jumping from $65 million to an impressive $262.7 million, a gain of over 300% from its 2005 showing.

Raytheon jumped from $390 million to $512 million, a very respectable 31.3% gain.

BAE Systems Australia only managed to move from $525 million to $535 million, a 1.9% change from 2005.

There has been more movement in the SME list, with quite a few players coming and going.

Rockwell Collins has snagged the no. 1 spot from CAE Australia, now in second place.

Ball Solutions Group has made the SME list at no. 3 as their employee numbers have made them eligible.

Rosebank Engineering has moved up one place to no. 4, bumping out Nautronix who now sits at no. 12.

Sonartech Atlas enters the race at no.5 and Xtek has also moved up one place to no. 6 from last year.

Last year's no. 8 Codarra Advanced Systems has lost ground comparatively with replacement Pacific Marine Batteries making its first show in the SME list.

Asia Pacific Aerospace holds steady at no. 9 while National Aerospace Training Centre of Excellence debuts at no. 10, pushing out G H Varley who has dropped to no. 15.

Copyright - Australian Defence Magazine, December 2006/January 2007