Firms to Boost Forecasts with Budget Deal

Firms to Boost Forecasts with Budget Deal

Lockheed Martin Corp., the world’s largest defense contractor, and others will probably boost sales forecasts if Congress passes a budget deal that undoes some federal spending cuts.

The Bethesda, Md.-based company, which expects $45 billion in revenue this year, had projected a slight decline in sales next year because of the government’s automatic, across-the-board reductions known as sequestration.

Chief Executive Officer Marillyn Hewson, who yesterday was elected chairman of the board effective Jan. 1, said the company will probably revise the sales forecast if the Senate this week joins the House in passing the two-year budget agreement.


“We had factored sequestration in, so now that we have more input … assuming that the budget gets approved, we’ll have an opportunity to revisit what our outlook is,” she said, according to an article by Andrea Shalal-Esa of Reuters.

The Senate as early as Wednesday is expected to pass the budget accord, which would let federal agencies such as the Defense Department avoid about $62 billion over two years. It would be paid for in part by scaling back pensions for working-age military retirees.

The legislation, known as the Bipartisan Budget Act, was crafted by Rep. Paul Ryan, R-Wis., chairman of the House Budget Committee, and his Senate counterpart, Sen. Patty Murray, D-Wash. It easily passed the House of Representatives last week by a vote of 332–94.

The Pentagon faces about $1 trillion in spending cuts over the next decade as part of 2011 deficit-reduction legislation known as the Budget Control Act. That includes almost $500 billion in reductions already planned and another $500 billion in automatic cuts.

The Ryan-Murray bill would undo some of those reductions.

Of the $62 billion in sequestration relief in the pact, $44 billion would be applied in 2014 and another $18 billion in 2015, according to a cost estimate from the Congressional Budget Office. That means the Pentagon would receive an additional $22 billion in 2014 and another $9 billion the following year, according to the office.

The added federal spending would be offset by raising revenue and cutting costs in other areas of the budget, from increasing security fees for commercial airline passengers to reducing contributions to civilian and military pensions.

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Lockheed: Your share of the pie grows with acquisitions and increased cost-overruns.

The greed of those idiots many of them projects we don’t need lick there lips for more money, yeah and it cuts help for our vets shows how greed wins in Washington. Hope the deal fails.

If you look at Lockheed history since 1970 they have never, ever brought a program in on time and budget

What are you talking about. LM employs many (30%) former military members. Look it up the stats maybe higher. Never on time? MH-60R 170+, the 1st 2 MH-60R to Australia ahead of schedule and under cost, S3, P3, SH-60Bs(170+) all on schedule and under cost. Oh. I get it you hate company that profit and employ over 110,000 former military and your neighbors working, paying taxes. OMG get a clue. I sick and tired of hearing the big
Old company’s are crushing out economy. What do you say to all the public unions crushing all of our local economies? What about the federal govt employees unions not taking a pay challenge? Are you kidding me, attack the very
Companies that provide the security and war fighting machines that give us the right to bit<&. God bless America and those that keep us free. Nough said.

Amen! Heloguy

Lockheed shares might be a good place to invest any spare cash if anybody’s got any lying around.

Ryan and the rest of the republicans are Communist!!!! That have done NOTHING for this Country but line the pockets of Lockheed Martin’s 20 Year Old F-35 at 168 Million each times 2300, the Rich and the Poor Banks on Wall Street…

One again the Military… the less than .01 percent of 347 Million individuals in the US that fight and die for this country are abused.… There is no trust left between the Military and Congress… Our Retirement is taxed at 30% yet we continue to be abused.

The COLA reduction would be phased in three years. The December 2014 COLA would be reduced by 0.25 percent, the December 2015 COLA would be reduced by 0.5 percent and the full reduction would take effect with the December 2016 COLA.…

God Bless our Vets and Troops.…

The Republicans will never “See that the Gates of Heaven”, as the Old hymn goes. are Guarded by U.S. Marines.

Do you think the Lockheed Martin JSF/F-35 that will not IOC to the Air Force and Navy until 26 Years after development start makes since? Does paying 168 Million a copy for a platform that now has obsolescence issues because the major IC Chips will be obsolete and the EW System along with numerous other Chips will need to be replaced and most if not all the LRU’s in the platform will need to be redesigned is not an issue? Should we continue to pay trillions of dollars for a platform that is obsolete? When Stealth is Dead.… there is no Air-Air Weapon on-board and pylons will be hanging off the platform including the weapons because the Weapons Bay overheats? Yes, I would say let LMCO continue… Our Veterans, Homeless and the VA does not need additional funding.… Our Vets are doing just fine.

Unfortunately, Lockheed (regardless of who they employ) has run two very high profile and very problematic programs that remain in the news JSF (the largest acquisition in history), and LCS.

Both of them suffer from massive cost overruns, scathing reviews from both internal and external agencies, huge scheduling problems, both are incapable of meeting even the reduced mission and performance requirements, and are therefore viewed a little more than corporate welfare programs.

In the case with LCS — other nations are able to build ships in the same class with stealthy designs, full military grade hulls, heavier base armaments, far superior protection, and mission packages for 1/3 less (and all other nations initially interested in LCS have long since walked away). The navy’s own review is attached to this site.

With the F-35, the recently released inspector general’s report, coupled with the more recent test results published, indicate that unless something truly spectacular happens, the performance of this aircraft will never meet even its reduced requirements.

In both cases — the US taxpayers are paying gold-plated prices, but are getting tin-plated and inferior product in return. According to virtually every report for either platform published publically.

That’s what he’s talking about.

CEO Hewson should revise her F-35 sales DOWN, because the moment the Pentagon confesses that they will substitute at least 1/3rd of their manned aircraft requirements with cheaper combat UAVs, she can chop 800 of those 2,300 F-35s off her bonus list.

F117?

And with Boeing and Saab teaming up for the TX Program, don’t be surprised if the submission looks like an Up-Graded Gripen E (NG) that can be a dual use Aircraft. A dumbed down model for Training and a Gripen NG ( like ) Advanced Fighter with Advanced Avionics that can go to replace Air National Guard units. Remember the Gripen can Super-Cruise, has Advanced AESA & IRST, can land and take off on a 800 meter stretch of highway. And 5 guys in a truck can refuel and rearm it in 10 minutes. And it’s maintenance cost 1/3 of the current F-16.

Oh by the Way Brazil just choose the Gripen E over the F-18 Super Hornet, so Boeing will be looking to produce a new aircraft it can sell World Wide very soon.

Y’know; I worked on most “century-series A/C, and at the end of my career, the A-10 was one of the greatest aircraft for supporting the troops! The love of my life was the “thud” (F-105}.
Chew tobacco — chew tobacco spit — if you ain’t weapons you ain’t sh***!!!!!! Thank You!

Lockheed has already been bailed out by the government once for massive corruption. Lockheed survived but the corruption got worse. It needs to split it up and left to die.

The F-35 is very much the new F-105 Thud — a failed design. The only aircraft in American aviation history withdrawn due to excessive losses.

Always funny when the military socialists accuse the Republicans of being socialist because they support big banks and companies. Our military is now the worlds largest socialist system. Not even the Chinese an compete with the largess our military bestows on itself.

If you look at the economics of the F-35 only 250 will ever be built. There simply isn’t the money for any more.

Knowing they’re greedy bastards, maybe we should stop paying them more to come in with a crappy product over budget and years behind schedule. I mean, that’s just me thinking.

I think it is important to define the flavor of socialism our military prefers these days. It is a huge fas cist socialist system. That is to say, they (as the government) love to pick the winners and losers among the elite few. Back when we had a more communist socialist system where the service branches themselves did basic R&D for their own weapons and often designed their own weapons (military rifles were designed and built at the Springfield Armory, ships were designed by the Naval War College) we had a truly great military. Hell, when the Air Force was doing their own basic research and buying aircraft built on the contractor’s nickle (not the taxpayers) that combination of socialism and capitalism worked great. Today we pay more for failure and wonder why everything costs so damn much. Pathetic.

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