Profits Squeezed in Aerospace & Defense Industry
October 20 2010 - 11:35AM
Marketwired
It is expected that in future years that the US government will be
looking for ways to cut budget costs in order to address the
ballooning federal budget deficit. The Defense budget will
certainly come into question as a US withdrawal from Iraq and an
eventual withdrawal from Afghanistan appear likely to reduce
military spending. On the other side of the Atlantic, British Prime
Minister David Cameron recently announced that the U.K.'s defense
budget would be cut by 8% in inflation-adjusted terms over the next
four years. The Bedford Report examines the outlook for companies
in the Aerospace & Defense Industry and provides research
reports on Lockheed Martin Corporation (NYSE: LMT) and
DigitalGlobe, inc. (NYSE: DGI). Access to the full company reports
can be found at:
www.bedfordreport.com/2010-10-LMT
www.bedfordreport.com/2010-10-DGI
The Pentagon expects that defense spending in the next year will
increase by 1 percent after accounting for inflation, in spite of
record deficits and calls from Congress to cut the budget. Defense
Secretary Robert Gibbs has outlined a plan to increase spending
directly on US forces by 2 to 3 percent by cutting $100 billion
from the overhead accounts over the next four years. Companies in
the Aerospace & Defense Industry stand to directly benefit from
these plans.
The Bedford Report releases regular market updates on the
Aerospace & Defense Industry so investors can stay ahead of the
crowd and make the best investment decisions to maximize their
returns. Take a few minutes to register with us for free at
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When Lockheed Martin reported earnings yesterday, the defense
giant's CFO, Bruce tanner, conceded that "From a budget and
austerity perspective, the customer decided to make do with what
they have." Lockheed Martin cut its continuing-operations profit
forecast to a range of $6.75 to $6.95 a share, from the previous
range of $7.15 to $7.35 a share on Tuesday.
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