Aerojet Rocketdyne wants to take you higher—if you're a rocket, that is. The company is one of the largest manufacturers and suppliers of propulsion systems for defense and space applications in the US. These systems are used in missile defense propulsion, tactical missile propulsion, and hypersonic propulsion systems. Virtually all its revenue comes from aerospace and defense operations. Principal customers include the US Department of Defense, NASA, Lockheed Martin, and Raytheon Company. The company also has a much smaller business segment that deals in real estate.
Aerojet Rocketdyne operates through two segments: Aerospace and Defense and Real Estate.
The Aerospace and Defense segment includes the operations of its wholly owned subsidiary, Aerojet Rocketdyne Inc., a technology-based designer, developer, and manufacturer of aerospace and defense products and systems. The Real Estate segment is managed by its wholly owned subsidiary, Easton Development Company. Easton is involved in rezoning, entitlement, sale, and leasing of its excess real estate—about 11,500 acres adjacent to US Highway 50 between Rancho Cordova and Folsom, CA. The holdings are located in a rapidly developing area east of Sacramento.
Headquartered in El Segundo, CA, Aerojet Rocketdyne operates manufacturing facilities around the US. It has multiple facilities in California and plants in Alabama, Arkansas, Florida, New Jersey, New Mexico, Tennessee, Virginia, and Washington.
It maintains a marketing and sales office in Arlington, VA near its customer base.
Sales and Marketing
US government departments and agencies (NASA, US military branches, the Missile Defense Agency) are the end customers for more than 90% of Aerojet Rocketdyne's sales, making the company vulnerable to fluctuations in government spending. In direct sales, the company's major customers are Lockheed Martin Corporation (about 25% of sales), United Launch Alliance (more than 20%), and?Raytheon Company?and NASA (each more than 15%).
Aerojet Rocketdyne has seen steady growth in net sales for the past five years although profits have been shaky. Net sales for fiscal 2017 totaled $1.9 million compared with $1.8 million for fiscal 2016. The increase was primarily due to an increase in the RS-25 and Commercial Crew Development space programs, and increased deliveries of the Atlas V program.
Net income saw a loss of $9.2 million in 2017 compared with net income of $18 million the previous year. The loss in 2017 was mainly the result of increased interest expense and the negative effects of income tax provisions.
Cash at the end of 2017 was $535.0 million, an increase of $124.7 million from the prior year. Cash from operations contributed $212.8 million to the coffers, while investing activities used $66.4 million (including $17 million for the acquisition of Coleman Aerospace and $20 million invested in marketable securities). Financing activities used another $21.7 million mainly for debt payments.
Aerojet Rocketdyne is focused internally on its cost structure and outwardly on its end markets and customers.
The company is in the second phase of its Competitive Improvement Program (CIP) launched in 2015, which is targeting $230 million in costs savings by 2021. The plan includes reducing its workforce and consolidating facilities. Phase I included transitioning the production of its THAAD solid rocket boosters and its Standard Missile-3 (SM-3) Throttling Divert and Attitude Control Systems (TDACS) from its Sacramento, CA facility to its Camden, AR and Orange, VA sites. The move has already resulted in significant costs savings through lower labor and material costs. Phase II will see further consolidation of personnel to its Huntsville, AL site, where the company is building a new Advanced Manufacturing Facility that will start production in 2019.
Aerojet Rocketdyne is capitalizing on the US' renewed interest in cislunar and deep space exploration (the president's fiscal 2019 budget includes a request of almost $20 billion for NASA), demand for satellite launches both in the military and commercially, and new commercial low-Earth orbit capabilities. It's focusing on developing affordable launch systems to fit new commercial, civil and military applications, even while those architectures and projects are not yet well defined. Aerojet Rocketdyne continues to invest in technology such as hypersonics, advanced electric propulsion, and throttleable solid propellants, and aims to strengthen its expertise in complex metallurgy.
Mergers and Acquisitions
In 2017, Aerojet Rocketdyne acquired Coleman Aerospace from L3 Technologies for $15 million. Coleman Aerospace builds ballistic missile targets for the US Missile Defense Agency as well as suborbital research rockets. The purchase supports the company's strategy to expand its range of products and services to the defense and space markets.
In 2015, GenCorp Inc. changed its name to Aerojet Rocketdyne Holdings Inc. After reporting a loss of $53 million in 2014, the company launched a massive cost savings initiative that included reducing its workforce by 10% and a reduction of 1 million square feet of office space at its headquarters office in El Segundo, CA. Part of the loss in 2014 was attributed to the acquisiton of Pratt & Whitney Rocketdyne for $550 million, to form Aerojet Rocketdyne.
2001 AEROJET RD
Rancho Cordova, CA 95742-6418
Phone: 1 (916) 355-4000
Employer Type: Privately Owned
Chief Engineer HAWK Rocket Motor Program: Thad Frazier
Chief of Information Technology Operations: Craig Halterman
Vice President Of Space And Launch Business Unit: Julie Van Kleeck
Employees (This Location): 1,400
Employees (All Locations): 2,700
Rancho Cordova, CA
Stennis Space Center, MS