Esterline Corporation is an engineering company specializing in the manufacture of highly technical systems and components principally for aerospace and defense markets. Approximately 80% of total revenues are generated from aerospace/defense markets --- the remaining 20% is the application of these technologies into industrial markets. Esterline management views the company's businesses in three segments related to its set of core competencies: Avionics & Controls, Sensors & Systems, and Advanced Materials.
Operations within the Avionics & Controls segment focus on technology interface systems for commercial and military aircraft, and similar devices for land- and sea-based military vehicles, secure communications systems, specialized medical equipment and other high-end industrial applications. The Sensors & Systems segment includes operations that produce high-precision temperature and pressure sensors, electrical power switching and control devices, fluid and motion control components and other related systems principally for aerospace and defense customers. And Advanced Materials focuses on process related technologies including high-performance elastomer products used for a wide range of military and commercial aerospace purposes, and combustible ordnance and electronic warfare countermeasure products.
Key to the company's strategy is a program of selective acquisitions and divestitures. Since 1996, Esterline has completed nearly 30 acquisitions --- all manufacturers of highly engineered products, serving industrial customers, and operating within a market niche enabling Esterline to be a significant player. Esterline also looks for synergy with existing operations or markets served, as well as opportunities to apply its technologies in other suitable industrial markets. This process, combined with ongoing investment in new product development and additional manufacturing capability, has reinforced Esterline's market-leading positions and enhanced its geographic reach.
Market balance also is a key to Esterline's success. In the aerospace/defense arena, a wide range of defense applications account for half of the business, with the other half coming from foreign and domestic manufacturers of commercial aircraft --- ranging from jumbo jets to business jets --- and the airlines and businesses that fly them. Commercial aerospace markets also include the world's jet engine manufacturers and space programs. Esterline also benefits from continual retrofit programs and the spare parts and repair business for existing fleets.
