{"id":2081381,"date":"2023-10-27T13:17:02","date_gmt":"2023-10-27T17:17:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ukraine-war-orders-starting-to-boost-revenues-for-big-us-defense-contractors\/"},"modified":"2023-10-27T13:21:26","modified_gmt":"2023-10-27T17:21:26","slug":"ukraine-war-orders-starting-to-boost-revenues-for-big-us-defense-contractors","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ukraine-war-orders-starting-to-boost-revenues-for-big-us-defense-contractors\/","title":{"rendered":"US defense contractors are seeing increased revenues due to orders related to the Ukraine war."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fukraine-war-orders-starting-to-boost-revenues-for-big-us-defense-contractors%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2081381&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p><span class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__small__1kGq2\" data-testid=\"Text\">By <\/span>Mike \u200dStone<\/p>\n<p>October 27,\u2063 2023 \u2013 10:10 AM UTC<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">Servicemen patrol\u2064 in front\u200b of the \u200cPatriot \u2063air\u200b defence system\u200b during Polish \u2063military training on the missile \u200dsystems at the airport in Warsaw, Poland February 7, 2023. REUTERS\/Kacper Pempel\/\/File\u2064 Photo<\/figcaption><\/figure>\n<p>WASHINGTON (Reuters) \u2013 The Russian invasion of \u200cUkraine in 2022 is starting to boost \u200cdefense contractors\u2019 revenues, as customers such as\u2064 the U.S. government \u200brestock supplies shipped to Ukraine \u2062and countries around\u2063 Europe\u200c arm themselves with\u200c an eye\u200d on \u200bMoscow\u2019s aggressions.<\/p>\n<p>U.S. defense contractors such as Lockheed Martin (LMT.N), General Dynamics (GD.N) and others expect that existing \u200borders for\u200c hundreds of thousands of artillery\u200c rounds, hundreds of Patriot missile interceptors and a surge in orders for armored vehicles expected in the \u200bmonths ahead will underpin their\u200d results in \u200ccoming quarters.<\/p>\n<p>New contracts to supply\u2064 Ukraine directly \u2013 or backfill U.S. \u200dweapons sent\u2063 to Ukraine \u2013 were signed late last year, \u2062and now revenue is flowing to the\u200c big defense contractors. Lockheed, General Dynamics and RTX\u2063 (RTX.N) all\u2064 reported better than expected results over the past several days,\u200d and executives expect \u2064both the conflict in Ukraine and Israel\u2019s war with Palestinian militant group Hamas\u200d to drive up near-term demand.<\/p>\n<p>\u201cWe\u2019ve gone from\u200d 14,000 \u200d(artillery)\u2063 rounds per \u200cmonth \u200bto 20,000 very quickly. We\u2019re working \u2062ahead of \u200cschedule to \u2062accelerate that production capacity up to 85,000, even as \u200dhigh as \u2064100,000 rounds per month,\u201d Jason \u200cAiken, General Dynamics\u2019 chief financial\u2064 officer, said on a call with\u200d Wall Street \u2064analysts on Wednesday.<\/p>\n<p>\u201cAnd I think the\u200d Israel situation is \u2064only \u200bgoing \u200dto\u2062 put upward pressure on that demand.\u201d<\/p>\n<p>The General Dynamics\u2019 Combat Systems\u200c unit,\u2064 which makes\u2064 armored vehicles, tanks and the artillery Ukraine uses, saw its \u200brevenue rise almost \u200d25% \u2063versus\u200d the same period a\u200c year ago.<\/p>\n<p>RTX, which makes AMRAAM rockets used in Ukraine, said \u2062on Tuesday\u2019s earnings call with\u200c Wall Street\u2062 analysts it has received $3 billion \u2063of orders since Russia\u2019s February 2022 invasion\u2064 that\u200b are \u200brelated\u2063 to replenishing Ukraine and U.S. war stocks, \u2063and\u200d the company expects more.<\/p>\n<p>Third-quarter sales\u2064 for Northrop Grumman\u2019s (NOC.N) Defense Systems segment rose 6% \u200bon high demand for ammunition and rocket motors \u2062used in\u2062 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ukraine-war-orders-starting-to-boost-revenues-for-big-us-defense-contractors\/\" title=\"US defense contractors are seeing increased revenues due to orders related to the Ukraine war.\">guided\u2064 multiple-launch rocket systems<\/a>\u2062 (GMLRS), which play a crucial\u200d role in \u200csupporting Ukraine\u2019s defense efforts against\u2063 Russian\u2064 forces.<\/p>\n<p>This is part of a global trend.\u200d Sweden\u2019s \u2063Saab (SAABb.ST) raised its \u200c<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dow-jones-industrial-average-falls-into-bear-market-territory-sets-new-low-for-the-year\/\" title=\"Dow Jones Industrial Average Falls Into Bear Market Territory - Sets New Low for the Year\">full-year sales outlook<\/a>\u200c on Thursday on the back of\u200c strong defense demand and Germany\u2019s Rheinmetall (RHMG.DE) said third-quarter\u2064 profit jumped on strong demand for weapons and ammunition.<\/p>\n<p>During his latest request for $106 billion in new funds\u2064 for Ukraine, Israel,\u2064 the Indo-Pacific region and border \u200cenforcement, \u2064U.S. President \u200cJoe Biden on Oct. 20\u2064 said some of\u2064 the\u2062 supplemental \u200brequest would go\u2062 to companies that backfill production of U.S. weapons sent abroad.\u200c Biden mentioned Patriot missiles made in Arizona,\u200d and \u201cartillery \u200cshells manufactured in 12 states across the country,\u201d naming Pennsylvania, \u200dOhio and Texas.<\/p>\n<p>To be sure, executives from several \u200bdefense firms at a \u2062recent trade show cautioned that\u2063 a lack of skilled \u2064labor and supply chain\u2063 issues continue to \u200bhamper companies\u2019 capacity \u2063to \u2063fill orders.<\/p>\n<p>\u201cThe supply\u2062 chain, to be completely \u2062candid with you, remains, and I think we expect\u200c to\u2062 remain what I call fragile,\u201d General Dynamics\u2019s\u200b Aiken said on the earnings\u2062 call, as the company said\u200c it \u200cwas cutting its forecast \u2063for 2023 business jet \u200cdeliveries. \u201cI don\u2019t think that\u2019s going to \u2063get back to what we saw pre-pandemic for the foreseeable\u2062 future.\u201d<\/p>\n<p>Lockheed on Oct. 17 said \u200dsupply and labor disruptions are affecting\u200b divisions \u200blike aeronautics, \u200dwhich makes the advanced F-35 fighter jet, due to the need for processor\u2063 assemblies, solid-rocket motors, castings and forgings.<\/p>\n<p>Reporting by Mike\u200d Stone in \u2062Washington; Editing \u200dby Rod Nickel<\/p>\n<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-4\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-4'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<p class=\"dpsp-share-text\" style=\"margin-bottom:10px\"> \t\t \t\tShare \u200cthis post!\t<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>A former U.S. Attorney says the DOJ knee capped the Hunter \u200bBiden Probe.\u200b Speaking of\u2062 Justice,\u2063 Jamaal Bowman tears down warning signs \u200cbefore valiantly \u2062pulling a\u2062 fire alarm .<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Multiple GOP congressmen give\u2064 their reaction\u200c on a recent report that said \u200cthe state owned network- \u201cThe\u2063 Voice of America\u201d \u2014 told it\u2019s reporters to \u2063stop calling Hamas \u2018terrorists.\u2019 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Weeks after Hamas terrorists attacked Israel, Iran\u2019s Foreign Minister is warning the U.S. to back away from supporting Israel. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>The conservative think\u200c tank Heritage Foundation is looking to\u200b force the Department of Homeland \u2062Security to comply with a Freedom of Information Act request\u2062 regarding\u200b a university\u200d program that tied the foundation and other \u2062Republican groups to \u200bneo-Nazis. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Intel rose more than 9% on Friday and sparked a jump in chip stocks after \u200bthe <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/amd-sees-lower-q3-revenue-as-pc-market-slump-worse-than-expected\/\" title=\"AMD sees lower Q3 revenue as PC market slump worse than expected\">personal computer market<\/a> was rebounding from its \u200cquarters-long slump.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Amazon.com\u200c rose 7%\u2062 on Friday as \u2064it aims for a larger share of\u2064 the booming artificial intelligence market in a race with Microsoft.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Malaysia\u2019s communications regulator will \u2062issue a warning to social\u2062 media firms TikTok and Meta\u00a0for allegedly blocking pro-Palestinian content on their platforms.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Lawyers for FTX\u200b founder \u200cSam\u200b Bankman-Fried \u2063kicked off their case at his fraud \u200ctrial on Thursday.<\/p>\n<\/p><\/div>\n<p> rnrn  <\/p>\n<h2> What are the\u2062 expectations for future demand in the defense industry as a result\u2064 of the conflict in\u2063 Ukraine and Israel&#8217;s war with \u200bHamas<\/h2>\n<p><span>  Russian Invasion of Ukraine Boosts Defense Contractors&#8217; Revenues<\/p>\n<p>By Mike Stone<\/p>\n<p>October 27, 2023 \u2013 10:10 AM UTC<\/p>\n<p>Advertisement<\/p>\n<p>Servicemen patrol in front of the\u200c Patriot air defense system during Polish military training on the missile systems at the airport in Warsaw, Poland, on February 7, 2023. REUTERS\/Kacper\u200c Pempel\/File Photo<\/p>\n<p>WASHINGTON (Reuters) \u2013 The Russian invasion of Ukraine in 2022 is starting to boost defense contractors&#8217; revenues, as customers such as the U.S. government restock supplies shipped to\u200b Ukraine and countries around Europe arm themselves with an eye on Moscow&#8217;s \u2063aggressions.<\/p>\n<p>U.S. defense contractors such as Lockheed Martin (LMT.N), General Dynamics \u200d(GD.N), and others expect that existing orders for hundreds \u200cof thousands of artillery rounds, hundreds of \u2064Patriot missile interceptors, and a surge in orders for\u200b armored\u200b vehicles expected in the months ahead will underpin\u200c their \u2062results in \u2062the coming quarters.<\/p>\n<p>New contracts to supply Ukraine directly \u2013 or \u2064backfill U.S.\u2064 weapons sent to Ukraine\u2064 \u2013 were signed late last year, and now revenue is flowing to the\u2062 big defense contractors. Lockheed, General Dynamics, and \u200bRTX (RTX.N) all reported better than expected \u200dresults over the past several days, and executives expect both\u2064 the conflict in Ukraine and Israel&#8217;s war with Palestinian militant \u2063group \u200bHamas to drive up near-term demand.<\/p>\n<p>&#8220;We&#8217;ve gone from 14,000 artillery rounds \u200bper month to 20,000 very quickly. We&#8217;re working ahead of schedule to accelerate that production\u2064 capacity up to 85,000, even as high \u2062as 100,000 rounds per\u2063 month,&#8221; Jason Aiken, General Dynamics&#8217; chief financial officer, said on a call with Wall\u200b Street analysts on Wednesday.<\/p>\n<p>&#8220;And I think the Israel situation<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Russian invasion of Ukraine in 2022 strengthens defense efforts, as servicemen patrol near the Patriot air defense system during Polish military training in Warsaw, Poland. (55 words)<\/p>\n","protected":false},"author":1911,"featured_media":2081382,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2081381","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2081381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2081381"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2081381\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2081382"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2081381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2081381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2081381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}