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AEROSPACE INDUSTRY SALES AND EMPLOYMENT DECLINE IN 1992

 WASHINGTON, Dec. 16 /PRNewswire/ -- United States aerospace industry sales in 1992 will decline 4 percent to $134 billion from last year's record of $139 billion. Sales are projected to drop again in 1993 to $126 billion. This information was released today by Don Fugua, president of the Aerospace Industries Association, at AIA's 28th annual Year-end Review and Forecast Luncheon in Washington.
 The decline is largely attributable to the $4 billion decline to $52 billion of purchases of aerospace products and services by the Department of Defense. This includes a 9 percent ($3.6 billion) decline to $35 billion in sales of military aircraft. Industry sales to NASA and other federal agencies increased slightly. Sales of civil aircraft and space-related products are projected to increase in current dollar terms only. After a considerable period of growth, the upward trend for both of these sectors for the near-term has slowed. The association is projecting a 10 percent decline in DoD purchases in 1993, while NASA and other civil government expenditures will increase slightly.
 "The long-term outlook for the aerospace industry is for a continued decline in overall sales volume for the rest of the decade," said Fugua. "Prospects for the next century will depend on developing a closer working relationship with government and new areas of growth."
 With every sector experiencing job losses, aerospace industry employment fell by 117,000 in 1992 to 1,063,000 after falling 90,000 in 1991. Employment is projected to decline again in 1993 by 4 percent (47,000 jobs) to 1,016,000. According to Fuqua, this represents a 24 percent decrease in jobs since the industry's peak employment of 1,331,000 in 1989.
 The industry's balance of trade increased slightly by $69 million to $31 billion. Both exports and the balance of trade declined in constant dollars, and there is a tapering off of the tremendous growth in exports that began in 1985.
 Aerospace industry net profits are expected to rise $69 million to $2.6 billion in 1992. However, profits in the last two years have been lower than at any time since 1982. The industry's profits measured as a percentage of sales, assets, and equity continue to under perform the overall manufacturing averages.
 New orders for aerospace products and services declined by 23 percent (or $29.5 billion). Shipments and backlog are also expected to decline in 1992.
 Civil aircraft sales rose to $29.7 billion in 1992 driven by record sales of commercial jet transports. In 1993 production of commercial jet transports is projected to decline by 103 aircraft with sales declining 10 percent to $25 billion.
 AIA is the trade association representing the nation's manufacturers of commercial, military and business aircraft, helicopters, aircraft engines, missiles, spacecraft, and related components and equipment.
 -0- 12/16/92
 /CONTACT: Alexis Allen of Aerospace Industries Association, 202-371-8544/


CO: Aerospace Industries Association ST: District of Columbia IN: ARO SU: ECO

IH -- DC003 -- 7747 12/16/92 13:16 EST
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Publication:PR Newswire
Date:Dec 16, 1992
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