WASHINGTON, April 25 (Reuters) – The Government
Accountability Office on Friday told lawmakers the U.S. Army
made a “sound” decision when it decided to skip prototypes in a
$6 billion competition for a new combat vehicle that was
unsuccessfully challenged by General Dynamics Corp.
The GAO, the investigative arm of Congress, said the Army
had taken other actions to reduce cost and risk on the new
vehicle program, including reducing requirements and opting to
modify an existing vehicle.
April 24 (Reuters) – U.S. weapons maker Raytheon Co
reported higher first-quarter profit on Thursday after a tax
credit and favorable pension adjustments and forecast strong
bookings and a slight gain in margins for the rest of the year.
Net income attributable to shareholders rose to $596
million, or $1.89 per share, from $488 million, or $1.49 a
share, a year earlier. The company, which makes missiles and
other military equipment, left its full-year forecast unchanged.
WASHINGTON (Reuters) – U.S. weapons maker Northrop Grumman Corp (NOC.N: Quote, Profile, Research, Stock Buzz) on Wednesday reported a higher-than-expected quarterly profit and raised its earnings forecast, despite a drop in sales and continued concerns about cuts in U.S. military spending.
Northrop, which makes unmanned planes, the B-2 bomber and a host of electronic equipment, said net income rose to $579 million, or $2.63 per share, in the first quarter from $489 million, or $2.03 a share, a year earlier.
WASHINGTON, April 23 (Reuters) – Australia’s decision to
order 58 more F-35 fighter jets built by Lockheed Martin Corp
by 2023 will help drive down the cost of the stealthy
warplane and strengthen the jet’s presence in Asia, a senior
Lockheed official said on Wednesday.
Steve O’Bryan, Lockheed’s vice president for F-35 business
development, said 10 countries had now committed to buying the
F-35, and Lockheed expected others to follow suit this year.
WASHINGTON, April 23 (Reuters) – U.S. arms makers complain
regularly that lower Pentagon spending on ships, jets and other
hardware will hit their earnings, but a string of
better-than-expected results this week show that layoffs and
cost-cutting have kept profits flowing, and growing.
Defense majors Lockheed Martin Corp, General
Dynamics Corp, and Northrop Grumman Corp have all
reported higher profits this week and raised their full-year
forecasts. In response, the Dow Jones index that tracks the 10
biggest aerospace and defense companies rose 2.2
percent on Wednesday.
WASHINGTON, April 23 (Reuters) – The biggest U.S. weapons
makers posted higher profits this week and raised their
forecasts for 2014 earnings, sending shares higher despite cuts
in military spending that have weakened revenues.
The Dow Jones index that tracks the 10 biggest aerospace and
defense companies rose 1.75 percent, driven by gains
in shares of Lockheed Martin Corp, General Dynamics Corp
, and Northrop Grumman Corp, which all reported
higher profit and earnings per share this week.
SYDNEY/WASHINGTON (Reuters) – Australia will order 58 more F-35 fighter jets built by Lockheed Martin Corp (LMT.N: Quote, Profile, Research, Stock Buzz) for A$12.4 billion ($11.61 billion), Prime Minister Tony Abbott said on Wednesday, a purchase that will raise its air combat power to among the world’s most advanced.
Australia approved the purchase of 14 of the stealth fighters in 2009, and the additional jets will provide the Royal Australian Air Force with enough aircraft to form three operational squadrons and one training squadron.
WASHINGTON (Reuters) – Lockheed Martin Corp (LMT.N: Quote, Profile, Research, Stock Buzz) warned on Tuesday that the U.S. Navy’s plan to cancel an order for 29 MH-60 helicopters built by Lockheed and Sikorsky Aircraft would result in large termination fees because they are part of five-year agreements signed in 2012.
Lockheed Chief Financial Officer Bruce Tanner told reporters that work had already begun on cockpits and other equipment for the helicopters, which were to be ordered in fiscal year 2016, and a better option might be to finish building the aircraft and then sell them to allies.
SYDNEY/WASHINGTON, April 23 (Reuters) – Australia will
announce plans on Wednesday to order 58 more F-35 fighter jets
built by Lockheed Martin Corp for A$12 billion ($11
billion), sources in Washington and Canberra told Reuters.
Prime Minister Tony Abbott will make the announcement of the
purchase around midday local time in the Australian capital,
Canberra, the sources said.
WASHINGTON, April 22 (Reuters) – Lockheed Martin Corp
, the Pentagon’s largest supplier, on Tuesday reported a
23 percent jump in net profit in the first quarter and raised
its earnings per share outlook for the full year by 25 cents.
But Lockheed, maker of the F-35 fighter jet, satellites and
coastal warships, said U.S. government budget cuts continued to
depress revenue this year, with sales to the U.S. military
likely to drop by 6.0 percent in 2014 after a 4.0 percent drop