purchase compendium
business homework helper
executive brief writing service michigan
dissertation literature review services
freelance sports writers wanted
purchase cover letter
custom writers essay service
inexpensive brief writing services
college essay on community service
where can you buy research papers
cover letter for customer service in a airline
ghost writers for hire
help with managerial accounting homework
tips for getting essays done
eating disorders essay
resume cv writing services
do you need a ghostwriter
math homework help free tutor
buy essays now
custom printed note paper
essay transition help
powerpoint broadcast service sharepoint 2010
case study interview help
help with dissertation questions
help with writing skills children
professional resume writing services ratings
research proposal writers uk
buying a dissertation uk
cheap college term papers
help in dissertation
i don39t want to write my college essays
which cv writing service review
homework help geometry free
assignment service
dissertation help co uk review
becoming a professional ghostwriter
resume services indianapolis
how much is a ghostwriter
medical school personal statement editing service
best curriculum vitae writing services in new york city
homework helpers books
science homework help high school
help with dissertation methodology
buy research papers writing service
resume writers las vegas
resume writing services austin tx
yorku essay help
community service definition essay
write my research paper for me for free
buy college football tickets
have someone write my paper
synopsis writing services prices
resume writing services dubai
letter of recommendation help me
get paid to write articles
free online will writing service
get someone to do my homework
cv services in dubai
homework help howard county library
java assignment help free
professional resume writers perth wa
cost for resume service
is it safe to buy essay online
essays help online
write my essay uk
website content writers uk
free online help with physics homework
buy book reviews on amazon
homework help india
buy custom business plan
case study borderline personality disorder
college essay to buy
assignment writing services india
need help with statistics homework
english essay help services
reviews for resume writing services
hiring a writer for website
do essays get italicized
buy cheap tissue paper
buy online essays uk
freelance writers wanted india
homework help sites in india
best outline writers
write my assignment dublin
custom essay station creative solutions
help with homework maths
professional cv services reviews
outline editing service
resume examples customer service manager
essay questions about community service
essay writer uk review
jet essay help
write my paperrs.org
assignment service marketing
best college application essay service
resume writer des moines ia
accounting resume writing services sydney
has anyone tried essay writing service
uk custom essays review
homework helpline philadelphia
homework helpster grade 3
buy paper
professional synopsis and synopsis writing services
is buying an essay safe
research proposal writing service uk
case customer gartner show study
help with writing a nonfiction book
film studies essay help
help me i need to write an essay
live online essay help
help write a digest
top letter of recommendation writing services uk
custom paper pads
i have no motivation to write my essay
cv key skillsexamples for customer service
help with homework online chat
why is community service important essay
book harry order phoenix potter review
custom paper plate printing
adsiedit write serviceprincipalname
get motivation to write an essay
letter of recommendation help denver
literature review on self help group
best letter of recommendation writing services for teachers
write my letter of recommendation
online help with writing an essay
social psychology homework help
nursing synopsis help
college report writing service
resume writing services nassau county ny
cv writing services in durban
proposal writing services
average cost of resume writing services
buy paper bags melbourne
get paid for your essays
resume writing services 2013
customs and courtesies essay
any good essay writing services
cv help san diego
professional resume writing service dubai
music homework help ks3
resume writers for fashion industry
primary homework help co uk war blitz
top professional digest writing services
help for dissertation writing
best synopsis writing service in dubai
help me make a thesis statement
literature review help
case study nervous system disorder
professional cv services belfast
write my essay wikipedia
i need help writing a compare and contrast essay
free websites for homework help
english coursework help a level
need homework help
buy papers please
best online homework help
i need help on my homework maplestory
resume professional writers canada
custom papers
help with conspectuss
case study on oppositional defiant disorder
business plan writers
help writing papers for college
cv writers in kent
help writing a research paper outline
freelance writer rates south africa
how critical thinking help in everyday life
writers services agreement
personal statement to get a job
financial accounting homework help free
custom research papers writing
how to write my paper in apa style
college essay editing service
creative writing online help
buy essay papers on line
custom term papers and essays
personal statement help sheet
professional ghostwriting services
freelance writers denver
help with math homework for free
ghost writers for hire california
business plan writers in chicago
what is the best essay service
quickbooks statement writer 2012 manual
professional resume writers in dubai
buy graduation speeches
resume writing services newcastle
free online help with essays
ways to help with homework
cheap college research papers
uk cheap essay
write my report
custom papers online
help with paperwork palm desert
get paid to write articles uk
research proposal on quality customer service
a manual for writers of research papers theses and dissertations free download
big y homework helpline online
free help with math homework problems

Lockheed Martin Earnings — Seeking Alpha

This is an exclusive article I wrote for Seeking Alpha about Lockheed Martin’s latest quarterly earnings and the rest of 2012.

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

Mid-tier Defense Contractors Report Poorer Results for Most Recent Quarter

The 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 they would meet or exceed their full year estimates indicating that despite all of the talks and plans of cuts there has not yet been a significant slowdown in U.S. defense spending.

This week two of the mid-tier defense contractors, Kratos (KTOS) and Alliant Techsystems (ATK), also reported for the third quarter and somewhat surprisingly they both saw worst performance with Kratos even suffering a loss.

Kratos Defense & Security Systems is a supplier of IT, safety and security, engineering and technical support for a variety of defense, FMS and civil customers. They saw a loss of about $7 million on sales of $211 million. This was a significant increase in sales from the previous year which saw only $120 million. The primary reason given for the swing to the negative was the completion of the acquisition of Integral Systems. Kratos has over the last few years been fairly aggressive in M&A to expand its business base and customers.

ATK which makes rocket motors, ammunition and explosives primarily saw a decline in revenue of of about $100 million and income fall $17 million. The company is exposed not only to cut backs at the Defense Department but also NASA. ATK is also suffering due to a decline in demand for civil ammunition.

ATK is also waiting on a new competition for one of its major contracts with the U.S. Army. The company had run the Radford, VA plant for the Army but lost a re-compete to BAE Systems (BAE:LSE) which they then protested. The Army decided to have a new contest due to ATK’s protest. That is a $200 million a year contract.

What these results illustrate is that the defense contracting industry is already adjusting to a different market. Results may be uneven for several quarters as this adjustment takes place. The companies that have not diversified or have a wide customer base will be the first to see changes in their revenues and earnings as decisions on individual programs or demand for some supplies begin to dry up. Both Kratos and ATK remain confident for the year but there is starting to be pressure on the sector.

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

Are Raytheon’s Earnings a Trend or a Aberration?

Raytheon (RTN) released its most recent quarterly earnings statement last week and they showed a decline in year-to-year results. While sales were up slightly at $6.06 billion from $6.05 earnings were down fourteen percent. The company also adjusted its yearly projection down to $4.67 to $4.82 from $4.83 to $4.98. Perhaps a little more ominously backlog went down slightly as well.

The question of course is whether this report is a one time aberration or will it signal a trend that due to decreases in U.S. and Western defense spending the big defense contractors are finally going to see contraction in the market. In this quarter Raytheon is able to point to a charge related to a cancelled British homeland defense IT contract but a major contribution was Integrated Defense Systems decline of nine percent in net sales primarily related to an unidentified U.S. Navy program.

In 2010 adjusted earnings per share for the company were up fifteen percent at $5.58 a share. This was after the company made a discretionary payment to their pension plan of $750 million as. For the last quarter of that year net sales were almost $7 billion. The contrast to the first quarter of 2011 is quite stark.

The U.S. will have to begin reducing defense spending soon. The goal of deficit reduction and control of total spending means that the largest discretionary item will have to take some hits. The end of fighting in Iraq and probably return of some troops from Afghanistan will also reduce operating costs. The Defense Department will also begin turning away from systems used in this fighting to investing in new, advanced weapons to face a more conventional threat.

Raytheon because of its focus on missiles, radars and C4I systems should be able to exploit that market. It has stakes in missile defense through the PATRIOT and Navy programs as well as ship and tactical missile systems. It should maintain its share of the pie although how big a pie remains to be split up among contractors remains to be seen.

Photo from Nevada Tumbleweed’s flickr photostream.

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

iRobot Reports First-Quarter Financial Results

BEDFORD, Mass.--(BUSINESS WIRE)--iRobot Corp. (NASDAQ: IRBT), a leader in delivering robotic technology-based solutions, today announced its financial results for the first quarter ended April 2, 2011. Revenue for the first quarter of 2011 increased 12 percent to $106.3 million, compared with $94.9 million for the same quarter one year ago. Net income in the first quarter of 2011 was $7.5 million, compared with $6.2 million in the first quarter of 2010. Quarterly earnings per share were $0.27, c

Add to digg Add to del.icio.us Add to Newsvine Add to Reddit Add to Google Add to Yahoo My Web Email this Article

Does Lockheed’s Results Portend the Defense Market?

Lockheed Martin (LMT) announced their most recent quarterly earnings and they didn’t paint a pretty picture. The concern is whether this was a one off bad report or does it portend the future for the large defense contractors now that Iraq and Afghanistan may wind down and budgetary pressures will reduce U.S. defense spending.

Compared to the same quarter in 2009 profits fell twenty-eight percent. Profits totaled $517 million compared to last year’s $797 million. Lockheed also reduced its estimates for the year by 40 cents and its projected sales by $600 million.

One of the effects dragging down the company’s results was a charge of almost thirty-two cents a share to cover the costs of buying out executives and other over head employees. This was done by the company in September as part of cost cutting moves to meet the Defense Department’s desires for lower overall costs by their contractors. 600 executives accepted the buy out. This is a one time charge but reflects the changing market Lockheed is facing.

Lockheed also is expecting short term reductions in revenue due to the decision to sell its consulting engineering division, Enterprise Integration Group (EIG). This was done in response to Pentagon concerns about Organizational Conflicts of Interest (OCI) between companies that support weapon testing and buying and also provide hardware to the military. Last year Northrop Grumman (NOC) did the same thing with its TASC group.

With Britain announcing major defense spending restructuring including retiring and delaying major programs the United State’s is expected to follow in the near term. These considerations led Lockheed to predict that their 2011 is looking fairly flat as well.

While cuts are expected the issue will be how fast they come. If there is a downturn hopefully it will be spread across several quarters allowing the defense industry to reduce steadily. If there are major cuts done rapidly the industry will be driven to reduce capabilities and jobs without allowing consolidation or M&A to happen.

There are already reports of contractors laying off workers due to decline in demands due to the withdrawal of U.S. troops from Iraq. In the Seventies and Nineties the U.S. military saw major reductions in money for not only new weapons but also that used to maintain and operate their existing equipment and train their personnel. The coming draw down must avoid similar situations.

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

Tale of Two Companies: Lockheed and Boeing Face Similar Struggles

April 27, 2010 by · Comment
Filed under: BNET 

Boeing (BA) and Lockheed Martin (LMT) reported quarterly earnings last week. They companies felt the bite of the tax changes from the new health…

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

Israel Buying Armored Trucks In The U.S.

Arotech Corporation of Michigan reported their recent quarterly earnings. The company still performed at a loss but compared to the same quarter last year saw strong improvement. The company almost halved its loss from $1.9 million to $1 million on revenues that were up almost $3.5 million.

One of the prime reasons for this growth in revenues was the sale of armored trucks, the David, to Israel. The company also makes simulators and armored plate for the military market as well as some commercial products. It’s subsidiary, MDT Armor Corp, makes the David in Alabama.

Israel like the U.S. and its allies in Afghanistan and Iraq faces a significant mine and Improvised Explosive Device (IED) threat. The provision of a armored truck makes sense as they must move supplies and troops by road along dangerous borders with the Gaza Strip or West Bank. The David is considered an “ultra light armored personnel carrier” that can defeat small arms and grenades as well as lighter IED attacks. The market for these kinds of vehicles is fairly significant as they can be used for internal security missions as well as light combat duty.

Unfortunately there are many parts of the world where military and police face these kind of threats from terrorist and insurgent groups. The David is one of several kinds of vehicles that would be useful in these kind of situations to move small groups of troops or supplies.

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

>