Defense firms eye benefits from Pentagon budget

[Joanne98]

Source: Reuters


ATLANTA, May 14 (Reuters) - Defense contractors including Northrop Grumman Corp (NOC.N) and General Dynamics Corp (GD.N) backed their full-year forecasts on Thursday, saying they expected to benefit from the Pentagon's 2010 budget even though it could halt some big weapons programs.

The Obama administration's $663.8 billion defense budget request, detailed last week, must be approved by Congress.

The Pentagon, looking to shift more focus to irregular warfare and emerging security threats, has proposed to halt weapons programs such as Lockheed Martin's (LMT.N) F-22 warplane. Also targeted for cutting is Northrop's kinetic energy interceptor, a missile program.

Northrop, which backed its full-year earnings forecast of $4.65 to $4.90 a share, said the cancellation of the KEI would not have a dramatic effect on 2009 sales or operating income. Still, it added that halting the multibillion-dollar program would have a more pronounced impact on its backlog.



Read more: http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSN1451348720090514

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At the end of the article they say it's all GOOD!

[ThomCat]

1. Despite any cancelled contracts, Obama is INCREASING

the pentagon budget from it's already obscene level. :(

The only way we're ever going to get our budget and debt under control is to cut the military budget significantly. Instead, it's always services for the poor that get cut. Nickels and dimes compared to what could come out of the military budget.

The military budget is over half of the total US budget! Over half of every dollar spent by the US government goes through the pentagon. That's totally fucking sick. That shows that we're a military empire like nothing else.

:(

[bemildred]

2. Pope reported to be Catholic.

Is that headline some sort of joke? Defense firms are hopelessly dependent on the Pentagon Budget, and the Pentagon is hopelessly dependent on the Defense Firms, and they are both screwing the rest of us.