Debt Limits, General Dynamics, & Beyond: Defense Industry Braces For Sequester

WASHINGTON: While the House has voted to extend the debt limit to May, the automatic federal spending cuts called sequestration still loom $90 billion large, half that bill for the Pentagon alone. Yet, as fourth quarter earnings calls begin, the defense industry and its stock values remain remarkably resilient. What gives? Or rather, what isn’t…

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BAE, Boeing, Raytheon Lose Congressional Champions; EMP Loses A Friend

WASHINGTON: The overall balance of the House and Senate Armed Services Committees will shift little in the 113th Congress, but individual causes and companies have lost important advocates as individual legislators went down to defeat. This may have been a banner year for incumbents– as most years are — but the House Armed Services Committee…

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Tanks For The Memories: What Was Hot At Massive Army Meet-Up

AUSA: The Association of the US Army’s annual meeting was smaller this year, but when it comes to AUSA — like most things Army-related– small is a relative term. The conference, held this week, engulfed the entire Walter E. Washington Convention Center. Defense industry displays ranging from rifles to huge armored vehicles sprawled over 198,000…

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Raytheon, Foreign Sales Already Strong, Looks to India, Turkey For More

WASHINGTON: As US defense spending drops, lots of arms makers are seeking sales abroad, including mighty Lockheed Martin. But Raytheon executive Thomas Kennedy insists his company’s different. While other US contractors began emphasizing foreign sales in the last year, “54 percent of the revenue for the IDS business is from international [already],” said Kennedy, president…

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US Defense Biz Outlook Grim, Foreign Sales Won’t Save It: Deloitte

Even if Congress somehow averts sequestration, the defense industry is headed for layoffs and, at best, anemic growth, and the much-vaunted surge in foreign military sales won’t turn that around. If the automatic cuts known as sequestration do take effect as currently scheduled in January, the impact would be “a devastating blow.” That’s the bleak…

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BAE-EADS Merger Lives Or Dies On French, Germans Learning To Let Go

Paris and Berlin are in a bind as British-based BAE and Franco-German giant EADs, the parent company of Airbus, seek approval to merge into the world’s largest aerospace company. If the French and German governments accept the companies’ current merger terms, their ability to influence the new tri-national behemoth will be sharply diminished and they…

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