American Derco Prospers

Derco Holding posted a record $215 million in total sales in 2001, the company said here. Based in Milwaukee, Wisconsin, Derco specializes in aftermarket support, upgrades and products for military aircraft around the world, and has more than doubled its sales since 1998. With an increasing U.S. defense budget and more militaries turning to outsourcing and upgrades, Derco expects sales growth to continue in 2002, according to chief operating officer Mark Hoehnen.

Recent milestones for Derco include a ten-year licensing agreement with Honeywell covering repair services for military aircraft cooling turbines. Derco Repair Services has expanded and modernized its Milwaukee facility, and says that it can now service pneumatic systems for any size aircraft, up to the 747. Derco plans to expand its pneumatics business to four or five times its present size.

Under another 2001 agreement, Derco Aerospace has become Honeywell's worldwide distributor of military fixed-wing aircraft products.
Derco has also concluded agreements with five companies to support F-16 systems in the past year, reinforcing its position in the fighter market. On the transport side, Derco Aerospace has performed upgrades on 32 C-130s and L-100s since offering the service in 1997.