|Market Research A to Z | Company Profiles A to Z | Register | Contact Us | Shopping Basket|
|+44 (0) 203 086 8600 Call us on|
The US defence industry took a battering in the stock market last week as investors decided to cash in after President Barack Obama's re-election.
Had republican candidate Mitt Romney gained victory in the Presidential vote, it was anticipated the US defence industry would see a rise in share prices as Romney has promised to enhance military spending.
However, Obama's victory will continue the sliding trend in defence spending, as the government struggles to cut budget deficits and draws down the military presence in Afghanistan.
Shares of Lockheed Martin Corp, Northrop Grumman Corp, General Dynamics Corp, L-3 Communications and Raytheon Co were down between 5.8% and 4.5% in early trading. Boeing Co shares were down 2.6%, while the Dow Jones industrial average was down 2.3%.
Lockheed Martin and other US defence contractors have been warning for more than a year that uncertainty about future budget levels is depressing investment in facilities, hiring and mergers and acquisitions.
Lockheed, Northrop Grumman, Boeing, and Raytheon told investors last month that they were focused on cutting costs and drumming up foreign sales to maintain profits, amid a long cycle of budget challenges after more than a decade of growth.
Obama's pledge in his victory speech to reach across the aisle and work with Republicans on deficit reduction fuelled hope among industry executives and defence experts that the indiscriminate $500 billion in cuts due to take effect on January 2 would be put off until the end of March when a temporary 2013 budget measure and Bush-era tax cuts expire.
However, the final compromise may still result in some additional cuts being made to the US defence industry.
For more information on the US defence industry, see the latest research: US Defence Industry
Follow us on Twitter @CandMResearch
Free Research Support: Let us do the work for you and find information from public and private sources of information. Contact us now and we can save you time and money.......Free Research Support
For the last month in 2014 we are offering discounted prices on a selection of new reports. Please contact us on 00 44 (0) 203 0868600 or via email (click here to email) to ask about prices and special discounts.
Available during December and the run-up to Christmas; Discounted prices on a selection of our reports.
We are offering our clients substantial savings on the best research available during December. Please contact us either via emailor by calling our team to discuss your specific research needs on Tel: 00 44 (0) 203 0868600. We look forward to being able to find you the research you require at good prices.