Britain’s QinetiQ recently posted double-digit sales and operating profits for its 2009 fiscal year driven by strong growth in performance at its United States-based division, which accounts for nearly half of the company’s overall business.
Sales grew 18 percent to $2.6 billion from $2.2 billion, with 7 percent of the gain organic. Underlying operating profit rose 22 percent to $245.5 million from $201.1 million.
QinetiQ North America (QNA) now makes up 47 percent of QinetiQ’s business, up from 39 percent a year ago. For the year, QNA’s sales grew 42 percent to $1.2 billion, with 15 percent of the growth organic. Underlying operating profit jumped 34 percent to $131.4 million.
QinetiQ said that organic growth at QNA was driven by sales of LAST Armor, the EARS sniper detection system, and the Dragon Runner unmanned ground vehicle.
QinetiQ said that the company’s U.S. business has reached a critical mass, allowing it to “develop synergies between our U.S. and U.K. operations.” The company said there is already technology and know-how being transferred across the Atlantic Ocean, citing the use by QNA of the SPO millimeter wave standoff imaging system to meet U.S. security requirements and the use by the U.K.-based business of the QNA-developed Dragon Runner to meet British military requirements.
QinetiQ cited four areas where it will exploit the capabilities of its U.S. and U.K. operations globally: Autonomy and robotics, sensors and spectrum, cyber security and resilience, and training and simulation.
QinetiQ said it expects a slowdown in U.S. business while the Obama administration fills key positions in the government but that the business remains positioned for sustainable double-digit sales growth and operating margin.