The Russian invasion of Ukraine in 2022 is starting to boost defense contractors' revenues, as customers such as the U.S. government restock supplies shipped to Ukraine and countries around Europe arm themselves with an eye on Moscow's aggressions.
U.S. defense contractors such as Lockheed Martin (LMT.N), General Dynamics (GD.N) and others expect that existing orders for hundreds of thousands of artillery rounds, hundreds of Patriot missile interceptors and a surge in orders for armored vehicles expected in the months ahead will underpin their results in coming quarters.
We’re working ahead of schedule to accelerate that production capacity up to 85,000, even as high as 100,000 rounds per month," Jason Aiken, General Dynamics’ chief financial officer, said on a call with Wall Street analysts on Wednesday.
The General Dynamics’ Combat Systems unit, which makes armored vehicles, tanks and the artillery Ukraine uses, saw its revenue rise almost 25% versus the same period a year ago.
Biden mentioned Patriot missiles made in Arizona, and “artillery shells manufactured in 12 states across the country,” naming Pennsylvania, Ohio and Texas.
To be sure, executives from several defense firms at a recent trade show cautioned that a lack of skilled labor and supply chain issues continue to hamper companies’ capacity to fill orders.
Lockheed on Oct. 17 said supply and labor disruptions are affecting divisions like aeronautics, which makes the advanced F-35 fighter jet, due to the need for processor assemblies, solid-rocket motors, castings and forgings.
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U.S. defense contractors such as Lockheed Martin (LMT.N), General Dynamics (GD.N) and others expect that existing orders for hundreds of thousands of artillery rounds, hundreds of Patriot missile interceptors and a surge in orders for armored vehicles expected in the months ahead will underpin their results in coming quarters.
We’re working ahead of schedule to accelerate that production capacity up to 85,000, even as high as 100,000 rounds per month," Jason Aiken, General Dynamics’ chief financial officer, said on a call with Wall Street analysts on Wednesday.
The General Dynamics’ Combat Systems unit, which makes armored vehicles, tanks and the artillery Ukraine uses, saw its revenue rise almost 25% versus the same period a year ago.
Biden mentioned Patriot missiles made in Arizona, and “artillery shells manufactured in 12 states across the country,” naming Pennsylvania, Ohio and Texas.
To be sure, executives from several defense firms at a recent trade show cautioned that a lack of skilled labor and supply chain issues continue to hamper companies’ capacity to fill orders.
Lockheed on Oct. 17 said supply and labor disruptions are affecting divisions like aeronautics, which makes the advanced F-35 fighter jet, due to the need for processor assemblies, solid-rocket motors, castings and forgings.
The original article contains 568 words, the summary contains 203 words. Saved 64%. I’m a bot and I’m open source!