Smiths also won a number of high profile military contracts. Illustrating the competitiveness of Smiths' digital systems, Aerospace will supply both the Flight Management and Stores Management systems for the US Navy's Multi-mission Maritime Aircraft (MMA), as part of the Boeing-led industry consortium that won the contract to build the aircraft. A number of contracts were secured for systems on the Northrop Grumman Joint Unmanned Combat Air System (J-UCAS), including the crucial vehicle management computers, establishing Smiths as a leading first-tier supplier of systems for the fast-growing market in unmanned air vehicles.

STRATEGIC INITIATIVES
The division continues to seek acquisitions that will enhance profitable growth. In May, the business of specialist US aero-engine component manufacturer, Dynamic Gunver Technologies (DGT) was acquired. DGT complements Smiths Aerospace capabilities in complex fabrications and provides a low cost manufacturing plant in Poland.

As the prime aircraft manufacturers drive their suppliers to reduce their costs, so Aerospace is taking action in response. Across the division, we continue to embrace lean manufacturing and are consolidating manufacturing facilities. Also included are two major projects to move administrative tasks into shared service centres. Exceptional restructuring costs of £15m have been charged in the year. As part of this efficiency drive, we are evaluating our supply chain, with the aim of forming strategic partnerships with a smaller number of key suppliers.

In April, the division opened a purpose-built 130,000 sq ft aerospace components manufacturing facility in Suzhou, Jiang Su province, China. The facility will initially manufacture precision-machined aircraft engine components for the civil marketplace, followed by sheet metal and composite airframe components later this year.

From a marketing perspective, Aerospace is striving to achieve its full potential, continuously refining the alignment of the product portfolio with all its global customer requirements.