research paper thesis maker
writing research papers lester 14th edition
creative writing phd cardiff
how to research paper note cards
critical thinking psychology
mla parenthetical citation powerpoint
writing accommodations for students with autism
write technical recommendation report
essay on lady finger vegetable
summary julius caesar by shakespeare
creative writing schools texas
motivational essay exchange
essay with section headings
qualitative case study unit of analysis
application letter in cashier
essay words list
cover letter high school application
buy an essay cheap
how to write an academic journal article review
commentary for academic writing for graduate students pdf
personal statement for columbia college
personal statements for graduate school physics
cover letter professor computer science
buy persuasive essay
case study material requirement planning
3 paragraph essay about respect
1950s essay introduction
gridworld case study part 4 answers
pay someone to statistics homework
fsu creative writing undergraduate
persuasive essay introduction techniques
help with writing a poem
executive resume writing reviews
application letter in the philippines
biola university requirements
resume writers in london on
personal statement law quotes
argumentative essay on reducing juvenile delinquency
reflective essay on life of pi
college paper writing service
write my own story
best websites to help with homework
term paper about kpop
essay high school experience
term paper research software
write any book in 28 days review
ultrasound case study pregnancy
case study 8 the bike rider with a broken hip answers
application letter for work experience
exemple cv infirmiere quebec
critical thinking newspaper
request letter for volunteer work
cover letter new york university
how to write my personal statement for college
university of florida personal essays
essay about trust friends
i need help writing a curriculum vitae
using direct quotes essay
write a lab report conclusion
critical thinking in nursing case studies across the curriculum
essay for patriotism
news paper writings
someone do my essay
what is a personal statement wiki
persuasive writing and argumentative essay
writing about yourself in a personal statement
precis help sydney
famous essays writing
application letter bahasa indonesia
how to do my algebra homework
nursing case study vehicular accident
100 reasons why i didn39t do my homework
literature review the hunger games
how to write an admissions essay for medical school
essay if i have 1 million
homework help papers
help i don39t want to do homework
custom paper writing college
mla research paper citation website
how to write better law essays pdf
resume writing services india
abridgment help atlanta
does bestbuy sell resume paper
book review on 5 point someone
introduction essay on racism
creative writing princeton nj
graduate application letter of interest
cover letter email unknown recipient
cover letter for a video game company
essay on true leadership
hot to write an essay plan
literature review of videocon
case study notes geography
essay custom writing
how to write a teacher resume ontario
video essay for isb
educational psychology report writing
customer service improvement
essay for college scholarships
essay on 6701
uc personal statement religion
case study 22 floorplan
essay on books exhibition
how to write a good book report for university
paper for writing musical notes
synopsis help united states
buy writing notebooks online
cover letter it service manager
cover letter for cv for accountant
research paper interior design
resume writing for sales manager
argumentative essay youth
resume and cover letter difference
cover letter for government management position
cheap custom essays
essay my best friend my mother
help with algebra homework problems
ocr critical thinking jan 2009 mark scheme
little albert case study evaluation
phd thesis proposal engineering
case study presentation nephrotic syndrome
cover letter binghamton university
essay about upbringing
critical thinking nursing quiz
letter of intent zoning
100200 words essay
cover letter nursing hospital
annotated bibliography apa spacing
cv cover letter academic
music to help me do homework
essay the meaning of life
cover letter resume hospitality
research papers internet advertising
verbs to use on teacher resume
resume writers in uae
help with my statistics homework
research paper citation record keeping it is not for wimps
writing a college digest for a student
quote for scholarship essay
analyzing case study evidence yin
pre written essays for sale
legal secretary cover letter salary requirements
britain 191851 essay plans
how to write book reviews uk
setting up a cv business
creative writing hsc length
annotated bibliography apa or mla
english paper piecing hexagon quilts
1000 words essay how many paragraphs
need essay
case study mexico to usa
case study report south coast telecommunication project 96073
uc personal statement fall 2013
how to write a personal statement for college entrance
finding a thesis statement in an essay
homework help high school
how to write a reflection paper for english
precis distribution services
how to write a resume for a highschool student with no experience
where can you buy resume paper
essay on leadership versus management
application letter icu nurse
common app essay college discussion
cover letter w9
writing good bug reports
annotated bibliography mla websites
research paper on utilitarianism
purchase term papers online
yale personal statement length
hult case study challenge
research paper
power of critical thinking quotes
cover letter for part time receptionist position
what are critical thinking standards
cv professional references
best term papers com reviews
cover letter entry level student
easybib apa 6
expert resume writers
cover letter for a video editor
best american essays 2011 review
love essay 1984
english creative writing stanford
yearbook advertising letter
cover letter graduate teacher
top letter of recommendation writing services 2013
homework help financial accounting
resume action words project management
medical school personal statement 5300 characters with or without spaces
case study 21 copd
persuasive speech writing
case studies in applied epidemiology no. 731703
college application essay on leadership
writing a cover letter professor
essay 200 words
case study science education
10 cover letter don ts
cover letter consulting entry level
writing a federal resume
yellow wallpaper essay thesis

Defense Contractor Earnings Continue to Be Steady

Several of the larger U.S. defense contractors released their quarterly statements this week and so far the trend has been to remain steady or show growth. As of now the planned reduction in U.S. defense spending has not yet seriously affected their performance but many expressed concerns with future plans and trends in the industry.

Lockheed Martin (LMT) saw an increase in profit compared to last year’s quarter of almost 25%. Profit was $700 million on revenues of $12.1 billion compared to the previous $560 million. The company though had a charge of almost $40 million related to cuts in its workforce.

Lockheed also expressed concerns with statements by the Pentagon that in the next batch of production F-35 Joint Strike Fighter that it should share in some of the costs caused by design changes related to testing results. This would be a major change in how defense procurements are normally done and could open up Lockheed for a large amount of liability and cost. The company and some in Congress have been meeting with Defense Department officials to push back on the idea of shared liability.

General Dynamics (GD) reported a slight increase in profits to $1.80 a share up ten cents from last year. This was on lower revenues of $7.85 billion compared to $8. GD expects for the year to deliver $7.15-$7.20 a share in earnings. The company like all of the other large contractors will continue plans to lower costs and shed employees over the next year to position itself for cuts in spending.

Northrop Grumman (NOC) also had an increase in profits. They were up 4.6% to $1.86 a share on slightly lower revenue of $6.61 billion. The growth was due to sales at their electronic systems segment as aerospace systems and information systems were lower. The company does expect overall earnings for the year to be higher then previously stated at $6.95-$7.05 a share. Northrop also saw pension impacts affect their earnings related to eliminating some jobs. Northrop had earlier this year spun off their naval systems business into Huntington Ingalls Industries (HII) which reduced revenue substantially.

Boeing (BA) also did well beating analyst estimates by 36 cents at $1.46 a share. Boeing’s net income was over a billion dollars an increase of almost $260 million compared to last quarter on sales of $17.7 billion. Boeing is different from other defense contractors in that 50% or more of their business is commercial aviation. This earnings report was dominated by discussion of the 787 airliner which has just started deliveries and service with airlines. Boeing delivered more jets this quarter then last and has sold out almost 8 years of 787 production. Boeing too will look at reducing overhead and cost structure on their defense side in order to compete in what is expected to be a tight market.

So far earnings by defense contractors have yet to see the effects of the end of fighting in Iraq, plans to draw down Afghanistan and expected cuts in defense spending. Although the 2012 budget has yet to be finished it is expected to be flat. The Government is already making decisions on ending programs such as radios, missiles and potentially vehicle systems. Next year may not be so good and 2013 might be much worse. All of the companies are looking at their costs and how to deal with a Defense Department that is pushing initiatives to reduce prices and risk in acquisition programs. As illustrated by the F-35 the contractors will only do so much to absorb this risk and the related costs.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter


3 Responses to “Defense Contractor Earnings Continue to Be Steady”

  1. Raytheon Sees Slowing With Latest Earnings Report | Defense Procurement News on October 28th, 2011 2:28 am

    [...] pessimistic about the whole of 2011. While several other defense contractors also saw reduced sales they all were able to increase profit due to cost cutting efforts and how their money was [...]

  2. Mid-tier Defense Contractors Report Poorer Results for Most Recent Quarter | Defense Procurement News on November 4th, 2011 2:33 am

    [...] larger defense contractors all reported their most recent quarterly earnings a few weeks ago. Most maintained their profits or saw an increase although revenue did decline in some cases. They remained mainly positive for the year stating that [...]

  3. Defense Contractors Pay Little To No Corporate Income Tax While Earning Billions | Greediocracy on November 7th, 2011 1:35 pm

    [...] contractors have made billions in profits this year, and “so far earnings by defense contractors have yet to see the effects of the end of fighting in Iraq, plans to draw down Afghanistan and expected cuts in defense [...]

Feel free to leave a comment...
and oh, if you want a pic to show with your comment, go get a gravatar!

You must be logged in to post a comment.