The sequester is creating confusion for aerospace and defense investors this year. However, confusion tied to the impact of defense budgets on aerospace suppliers may present opportunity given military spending is historically lumpy and strong commercial aerospace demand provides long-term tailwinds.
If so, one aerospace supplier worth consideration is Esterline Technologies (NYSE:ESL), a company with reach into key military programs such as the upcoming Airbus A400M, and commercial programs, such as the top selling Airbus 320.
The company operates three segments
1. Advanced Materials - defense technologies and engineered materials.
2. Sensors and Systems - advanced sensors, connectors and power systems.
3. Avionics and Controls - avionics systems, communication systems, control systems and interface technologies.
Esterline's sales are...
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