Rapid Fire Oct. 24, 2012: Primes Continue to Lose Ground in Q3

Oct 24, 2012 11:00 UTC by Defense Industry Daily staff
  • When President Obama said sequestration “will not happen” during the last pre-election debate, it seems he meant “should not happen.”
  • The US Navy continues to play a significant role [PDF] in the economy of the Hampton Roads area in Virginia.
  • Northrop Grumman’s Q3 2012 sales are down 5.2% (Y/Y) to $6.27B, but their total backlog is up by $1.5B to $41B. Continuing a trend seen in previous quarters, information and electronic systems are driving revenue down, while aerospace has grown 5% to $2.59B thanks to UAVs and the F-35.

  • Boeing’s sales meanwhile rose by 13% to $20B in the third quarter. This is led by commercial aircraft deliveries, as the Defense, Space & Security (BDS) topline shrunk by 4% to $7.84B. The total backlog grew by $4B to $378B, $71B of which come from BDS.

  • Higher size standards to define how large a small business can be to be considered as such by the US federal government are effective as of today. Small Business Administration. In some industries you can generate as much as $35M in sales per year and still qualify for set asides.

  • Estimates for the logistical costs for NATO forces to exit Afghanistan are rising. AviationWeek.

  • China is making some changes among its top military brass. WSJ | Global Times.

  • The GAO estimates that the Pentagon has spent almost $7B on lighter-than-air platforms such as JLENS or LEMV, with a peak in 2010 followed by a steep decline planned for the years ahead, as the following chart shows:
    Categories: Blimps & LTA Craft, Boeing, Budgets, China, Corporate Financials, Issues - Political, Legal, Logistics, Northrop-Grumman, Official Reports, USA

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