TransDigm Group (TDG)

TransDigm Group (NYSE:TDG) | Products & Business Units

Top Menu Background

TransDigm Inc. was formed in July 1993 in connection with the acquisition of certain businesses from IMO Industries Inc. TransDigm Group Incorporated was formed in July 2003 to facilitate the acquisition of TransDigm, Inc. The company was owned by private equity funds until its Initial Public Offering (IPO) in 2006.

TransDigm Group is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. TransDigm Group's business is well diversified due to its broad range of products. The company estimates that about 90% of total net sales for fiscal year 2014 were generated by proprietary products. In addition, it is estimated that TransDigm generated about 75% of its net sales from products for which the company is the sole source provider. Most of the company's products generate significant aftermarket revenue. Once TransDigm's parts are designed into and sold on a new aircraft, the company generates net sales from aftermarket consumption over the life of that aircraft, which is generally estimated to be approx. 30 years. A typical platform can be produced for 25 to 30 years, which gives TransDigm an estimated product life cycle of 50-60 years to work with. TransDigm estimates that approximately 55%, 55% and 53% of total net sales in fiscal year 2014, 2013 and 2012, respectively, were generated from aftermarket sales, the vast majority of which come from the commercial and military aftermarkets. These aftermarket revenues have historically produced a higher gross margin and been more stable than sales to original equipment manufacturers (OEMs).

TransDigm Group is headquartered in Cleveland, Ohio and incorporated in the state of Delaware.

During the company's third quarter ended June 29, 2013, TransDigm changed its internal management structure and its reporting structure.

TransDigm Group's businesses are now organized and managed in three reporting segments:

 

Power & Control
Airframe
Non-aviation



The following table highlights TransDigm Group's sales from 2012 to 2014 by segment:
TransDigm Group's Segment Sales




TransDigm operates through the following business groups:
Acme Aerospace, Inc.; Adams Rite Aerospace; Adel Wiggins Group; ADS/Transicoil; AeroControlex Group; Aero Fluid Products; AmSafe; Avionic Instruments, Inc.; Avtech Corporation; Bruce Aerospace; CDA InterCorp; CEF Industries; Champion Aerospace; Dukes Aerospace, Inc.; Electromech Technologies; HARCO; Hartwell Corporation; Marathon Norco; Schneller; Semco Instruments, Inc.; Skurka Aerospace, Inc.; Technical Airborne Components; and Tyee Aircraft.

Products



TransDigm primarily designs, produces and supplies highly-engineered proprietary aerospace components (and certain systems/subsystems) with significant aftermarket content. The company seeks to develop highly customized products to solve specific needs for aircraft operators and manufacturers. TransDigm attempts to differentiate itself based on engineering, service and manufacturing capabilities. The company typically chooses not to compete for non-proprietary build-to-print (BTP) business because it frequently offers lower margins than proprietary products. TransDigm believes that its products have strong brand names within the industry and that the company has a reputation for high quality, reliability and customer support.

TransDigm's business is well diversified due to the broad range of products that it offers to customers. Some of the company's more significant product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, NiCad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, specialized cockpit displays, aircraft audio systems, specialized lavatory components, seatbelts and safety restraints, engineered interior surfaces, lighting and control technology and military personnel parachutes and cargo delivery systems.



Active commercial production programs include the Boeing 737, 747, 767, 777 and 787, the Airbus A319/A320/A321, A330 and A380, the Bombardier CRJs and Challenger, the Embraer ERJs, the Cessna Citation family, the Raytheon Premier and Hawker and most Gulfstream airframes. Military platforms include aircraft such as the Boeing C-17 Globemaster III, F-15 Eagle/F-15E Strike Eagle and F/A-18 Hornet/Super Hornet, CH-47 Chinook, and AH-64 Apache helicopters; the Lockheed Martin C-130J, the Airbus A400M, F-16 Fighting Falcon, and F-35 Lightning II (Joint Strike Fighter); the Northrop Grumman E-2C/D Advanced Hawkeye; the Sikorsky UH-60 Blackhawk, the General Atomics MQ-1 Predator UAV and the Raytheon Patriot Missile. TransDigm has been awarded numerous contracts for the development of engineered products for production on the Airbus A320neo, the Boeing 737 MAX, and the Sikorsky S-97 helicopter.


Power & Control

Top



The Power & Control segment includes operations that primarily develop, produce and market systems and components that predominately provide power to or control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies. Major product offerings include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices and specialized AC/DC electric motors and generators. Primary customers of this segment are engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies and repair depots. Products are sold in the original equipment and aftermarket market channels.

     Financial results for TransDigm Group's Power & Control segment were as follows:


Performance of TransDigm Group's principal lines of business

Airframe

Top



The Airframe segment includes operations that primarily develop, produce and market systems and components that are used in non-power airframe applications utilizing airframe and cabin structure technologies. Major product offerings include engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, aircraft audio systems, specialized lavatory components, seatbelts and safety restraints, engineered interior surfaces, lighting and control technology, military personnel parachutes and cargo aerial delivery systems. Primary customers of this segment are airframe manufacturers and cabin system suppliers and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies and repair depots. Products are sold in the original equipment and aftermarket market channels.

     Financial results for TransDigm Group's Airframe segment were as follows:


Performance of TransDigm Group's principal lines of business

Non-Aviation

Top



The Non-aviation segment includes operations that primarily develop, produce and market products for non-aviation markets. Major product offerings include seatbelts and safety restraints for ground transportation applications, mechanical/electro-mechanical actuators and controls for space applications, and refueling systems for heavy equipment used in mining, construction and other industries. Primary customers of this segment are off road vehicle suppliers and subsystem suppliers, child restraint system suppliers, satellite and space system suppliers and manufacturers of heavy equipment used in mining, construction and other industries.

     Financial results for TransDigm Group's Non-Aviation segment were as follows:


Performance of TransDigm Group's principal lines of business
Company Information

Revenues ('14): $2,373M +23.3%

R&D ('14): $42M +31.8%

Net Profit ('14): $307M +1.4%

CAPEX ('14): $34M -3.9%

TransDigm Group - Tier I/II

Products News Subsidiaries Acquisitions Competitors Customers R&D Spending 5-Year Financials

Aerospace Sector:

   

Electronic Components; Motion & Flow Control

Products:


Mechanical/electro-mechanical actuators and controls; Ignition systems; Engine sensors; Harnesses and related components; Specialized pumps and valves; Power conditioning devices; Specialized AC/DC electric motors and generators; NiCad batteries and chargers; Engineered latching and locking devices; Rods and locking devices; Engineered connectors and elastomers; Aircraft audio systems; Engineered latching and locking devices; Cockpit security components and systems; Specialized cockpit displays; Aaircraft audio systems; Specialized lavatory components; Seatbelts and safety restraints; Engineered interior surfaces; Lighting and control technology; Military personnel parachutes; Cargo delivery systems.

Major DoD Defense Programs:


| AH-64 | C-17 | C-130J | CH-47 | F-15 | F-16 | F/A-18E/F | F-35 Lightning II |
| MQ-1 Predator | P-8A Poseidon | Patriot/PAC-3 | Sikorsky S-97 | UH-60 Black Hawk |
| V-22 Osprey |

Commercial Programs:


| Airbus: A320 Series, A330, A350 XWB, A380 |
| Boeing: 737NG, 737 MAX, 747-8, 767, 777, 787 |
| Bombardier: CRJ, Challenger, Learjet | Embraer: ERJ | Cessna: Citation |
| Gulfstream: G-series |

Sales 2010-2014 Net Income 2010-2014 R&D Spending 2010-2014 # Employees 2010-2014

Company Performance Company News SEC Filings Press Releases
Products and Business Segments
Customers
Competitors and Competition
Research Spending and R&D Activities
Key Raw Materials and Components
Subsidiaries
Acquisitions and Divestures
Aerospace Company Data
Aerospace Company Data
Social Networking