Andrea's Feed
Jul 25, 2013

U.S. Navy defends new warship, warns against slowing production

WASHINGTON (Reuters) – U.S. Navy officials on Thursday staunchly defended the newest class of U.S. warships despite a spate of technical glitches, and they warned lawmakers that halting funding for the ships or their equipment could drive up costs.

They rejected a report by the Government Accountability Office (GAO) released Thursday that blasted the acquisition program for the Littoral Combat Ships (LCS) as a risky “buy before fly” approach and urged lawmakers to limit funding for more ships until the Navy completed technical studies.

Jul 25, 2013

Raytheon raises forecast as profit exceeds estimates

By Andrea Shalal-Esa

(Reuters) – U.S. weapons maker Raytheon Co (RTN.N: Quote, Profile, Research, Stock Buzz) on Thursday reported higher-than-expected earnings and revenue for the second quarter and joined other major defense companies in raising its forecast for the full year despite Pentagon budget cuts.

The company, which makes Patriot missiles and an array of other military equipment, experienced some delays in U.S. bookings as a result of Pentagon budget cuts imposed in March, but is “staying ahead of the curve” with continued cost-cutting and strong foreign sales, Chief Financial Officer David Wajsgras said.

Jul 25, 2013

Raytheon raises forecast as profit beats Street

By Andrea Shalal-Esa

(Reuters) – U.S. weapons maker Raytheon Co (RTN.N: Quote, Profile, Research, Stock Buzz) on Thursday reported higher-than-expected earnings and revenue for the second quarter and joined other major defense companies in raising its forecast for the full year despite Pentagon budget cuts.

The company saw some delays in U.S. bookings as a result of new budget cuts imposed on the Pentagon in March, but it is “staying ahead of the curve” with continued cost-cutting and strong international sales, Chief Financial Officer David Wajsgras told Reuters.

Jul 24, 2013

U.S. warship returns to sea after generator issues

WASHINGTON (Reuters) – The USS Freedom, one of the U.S. Navy’s new coastal warships, has returned to sea to participate in a naval exercise with Singapore, after generator problems forced it to return to port over the weekend, a Navy spokeswoman said on Wednesday.

Technicians replaced parts in two of the three diesel generators that power the ship, which was built by Lockheed Martin Corp, Navy Lieutenant Caroline Hutcheson said.

Jul 24, 2013

Northrop boosts profit, raises full-year forecast

WASHINGTON, July 24 (Reuters) – U.S. arms maker Northrop
Grumman Corp shrugged off Pentagon budget cuts to report
higher-than-expected quarterly earnings on Wednesday and raised
its forecast for the full year, driving its shares up nearly 5
percent to a new 52-week high.

The maker of Global Hawk unmanned spy planes and defense
electronics also raised its outlook for full-year profitability,
although its order backlog was lower.

Jul 24, 2013

General Dynamics raises outlook as profit beats Street

WASHINGTON (Reuters) – General Dynamics Corp (GD.N: Quote, Profile, Research, Stock Buzz) reported higher-than-expected second-quarter earnings on Wednesday, with strength in its Gulfstream jet division offsetting declines in a defense business feeling the heat of Pentagon budget cuts.

The company also raised its guidance for full-year earnings, sending its shares up sharply in morning trading to a new 52-week high of $86.39.

Jul 24, 2013

Arms makers boost profits despite Pentagon budget headwinds

WASHINGTON (Reuters) – U.S. arms makers reported higher quarterly earnings on Wednesday despite Pentagon budget cuts, with many raising their full-year forecasts, but the companies’ order books showed an increasingly tough market.

The Pentagon began implementing $37 billion in mandated budget cuts for fiscal 2013 in March, and it faces additional cuts of $50 billion annually over the next nine years unless Congress acts to avert a process known as “sequestration.”

Jul 24, 2013

U.S. arms makers boost profits despite Pentagon budget headwinds

WASHINGTON, July 24 (Reuters) – U.S. arms makers reported
higher quarterly earnings on Wednesday despite Pentagon budget
cuts, with many raising their full-year forecasts, but the
companies’ order books showed an increasingly tough market.

The Pentagon began implementing $37 billion in mandated
budget cuts for fiscal 2013 in March, and it faces additional
cuts of $50 billion annually over the next nine years unless
Congress acts to avert a process known as “sequestration.”

Jul 23, 2013

What budget cuts? Lockheed boosts profit, raises forecast

WASHINGTON (Reuters) – The Pentagon’s top supplier, Lockheed Martin Corp (LMT.N: Quote, Profile, Research, Stock Buzz), on Tuesday boosted second-quarter earnings by 10 percent and raised its full-year profit forecast, saying that long-dreaded U.S. budget cuts failed to hurt its sales as much as expected.

The news sent the shares of Lockheed, maker of F-35 fighter jets and Aegis missiles, up 3.4 percent to a new year high of $119.59, although the share price later fell to around $117.70.

Jul 23, 2013

Lockheed hopes for next Pentagon deal on F-35 jets soon

WASHINGTON (Reuters) – Lockheed Martin Co (LMT.N: Quote, Profile, Research) is making “good progress” in negotiations with the Pentagon about the next two batches of F-35 fighter jets and hopes to reach agreement soon, Chief Executive Marillyn Hewson said on Tuesday.

Lockheed is building three models of the F-35 for the U.S. military and eight international partner countries: Britain, Australia, Canada, Norway, Turkey, Italy, Denmark and the Netherlands. Israel and Japan have also ordered the jet.