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War is hell, but it’s also business.
Lockheed Martin has seen a deal with the Pentagon accelerate as Washington sends a ton of arms to Ukraine, but supply chain bottlenecks and labor shortages are putting pressure on military contractors. The trader’s annual forecast is slightly below Wall Street’s forecast.
still on top
Lockheed is the world’s largest defense company by revenue, so 2023 looks like a plateau for the F-35 fighter maker, but it remains at the top and is expected to grow again in 2024. In the fourth quarter of 2022, he had $19 billion in sales, about 3% above the company’s forecast, but for the full year, he hit about $66 billion in sales, and in 2021 he’s up to $67 billion. Slightly depreciated from the dollar.
Despite increasing reservations in several quarters, the US has shown no sign of reducing military equipment to Ukraine. Nor is there any indication that the conflagration will end.
- Since the conflict flared up last February, the United States has provided over $24 billion in security assistance to Ukraine, including anti-tank missiles, armored vehicles, night vision goggles, rifles and a number of howitzers.
- Lockheed could face more problems than just its supply chain in 2023. By the time you buy a house, have a family, and grow old with a lover, Kevin McCarthy, who was elected to the Speaker of the US House of Representatives, could push the cuts. Military spending is especially so now that the US has reached her $31.4 trillion debt ceiling. That’s not good news for a company that derives 71% of his revenue from dealings with the U.S. government.
“We have been saying for quite some time that 2023 will be a stable year from a revenue perspective,” CEO Jim Tyklett told Reuters.
Outta Ammo: With tanks and artillery not as needed in recent conflicts in the Middle East as in previous hot and cold wars, many nations maintained stockpiles of heavy equipment for decades. Late Tuesday, the White House announced its intention to send 30 to 50 Abrams tanks to Ukraine, while Germany and other countries would send their own artillery vehicles to provide political cover to keep Ukrainians armed. Reports have surfaced.As for the shells fired, defense expert Camille Grand said new york times, “One day in Ukraine is more than one month in Afghanistan.”
