FY2021 10-K Document - FINAL 11 15 21 - Flipbook - Page 31
Table of Contents
Space and Defense Controls
(dollars in millions)
Net sales
Operating profit
Operating margin
2021
$ 799
$
88
11.1 %
2020
$ 770
$ 102
13.2 %
2019
$ 683
$
89
13.0 %
2021 vs. 2020
$
%
Variance
Variance
$
29
4%
$
(13)
(13%)
2020 vs. 2019
$
%
Variance
Variance
13%
$
87
$
13
14%
Net sales within Space and Defense Controls in 2021 increased compared to 2020, driven by growth in our space
markets.
Across our space programs, we continue benefiting from increased government spending on military applications and
civil missions. Sales in our space market increased $39 million in 2021 when compared to 2020 due to increases in
integrated space vehicles programs and satellite avionics programs. Partially offsetting the increase was a $10 million
sales decline within our defense market. Within the defense market, sales declined $15 million in missile systems due
to the timing of orders for development and production missiles. Additionally, defense sales declined $13 million in our
security programs due to lower bookings. Increased orders for defense component programs and naval programs
partially offset the sales declines.
Operating margin decreased in 2021 as compared to 2020 primarily due to higher costs on firm fixed price
development contracts across our space and defense markets. As a result of the COVID-19 pandemic, we
experienced supply chain challenges and direct labor inefficiencies. Additionally, in 2021 we recorded $2 million of
impairment charges and $1 million in other charges as we exited certain product and contract arrangements.
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