Editor’s Note: Related tickers: General Dynamics Corporation (NYSE:GD), Northrop Grumman Corporation (NYSE:NOC), The Boeing Company (NYSE:BA), Lockheed Martin Corporation (NYSE:LMT), Rockwell Collins, Inc. (NYSE:COL), Deutsche Bank AG (NYSE:DB)
General Dynamics Quarterly Profit Rises as Sales Decline (BusinessWeek)
General Dynamics Corporation (NYSE:GD), the maker of Abrams tanks and Gulfstream business jets, rose the most in four years after beating analysts’ estimates for first-quarter profit. Net income from continuing operations increased 1.2 percent to $571 million, or $1.62 a share, compared with $564 million, or $1.57 a share, a year earlier, the Falls Church, Virginia- based company said today in a statement. Analysts forecast (GD) $1.50 a share, the average of 19 estimates compiled by Bloomberg. Sales fell 2.3 percent to $7.4 billion.
General Dynamics posts about 1 pct increase in 1st-qtr net income on lower costs (WashingtonPost)
General Dynamics Corporation (NYSE:GD) said Wednesday its first-quarter net income edged up about 1 percent, as lower operating costs offset a slight decrease in revenue. The aerospace and defense company earned $571 million, or $1.62 per share, up $564 million, or $1.57 per share, from the same quarter the year before. A reduction in the number of outstanding shares from last year provided a 3-cent boost to the recent quarter’s per-share results. Revenue fell 2 percent to $7.4 billion from $7.58 billion. The profit easily beat Wall Street predictions, while the revenue fell short. Analysts, on average, expected a profit of $1.50 per share on $7.54 billion in revenue, according to FactSet.
Northrop to Lockheed Profits Unscathed by Budget Cuts (Bloomberg)
Three top weapons makers said across-the-board U.S. budget cuts that began March 1 won’t hurt their profits for the year. General Dynamics Corporation (NYSE:GD) and Northrop Grumman Corporation (NYSE:NOC) left their full-year outlooks unchanged today as they reported first- quarter net income that exceeded analysts’ estimates. Lockheed Martin Corporation (NYSE:LMT), the No. 1 defense contractor, reported much of the same yesterday. The companies’ quarterly results and 2013 outlooks clash with dire predictions from industry officials, who last year used words such as “devastating” and “Armageddon” to describe the effects of the $1.2 trillion in automatic cuts known as sequestration.
General Dynamics Stock Rating Reaffirmed by Deutsche Bank (GD) (DailyPolitical)
General Dynamics Corporation (NYSE:GD)‘s stock had its “buy” rating restated by analysts at Deutsche Bank AG (NYSE:DB) in a research report issued to clients and investors on Thursday, Analyst Ratings Network reports. They currently have a $78.00 price target on the stock. Several other analysts have also recently commented on the stock. Analysts at TheStreet reiterated a “buy” rating on shares of General Dynamics in a research note to investors on Tuesday. Separately, analysts at Barclays Capital reiterated an “overweight” rating on shares of General Dynamics Corporation (NYSE:GD) in a research note to investors on Monday, April 15th. They now have a $87.00 price target on the stock.
Northrop Grumman Receives Work Worth $35.7M (SDBJ)
Northrop Grumman Corporation (NYSE:NOC) received a $35.7 million contract modification for Global Hawk engineering and manufacturing development, the U.S. Defense Department announced recently. The Global Hawk is the company’s high-altitude, robotic spy aircraft. The U.S. Air Force, which operates the fleet, says the aircraft can stay aloft for more than 28 hours. The cumulative value of the multiyear contract is slightly less than $2.3 billion. Work will be performed in San Diego and is expected to be completed by January 2017. The Air Force Life Cycle Management Center at Wright-Patterson Air Force Base in Ohio awarded the contract.
Northrop Grumman posts 3 pct drop in 1st-qtr demand, but beats Wall Street predictions (WashingtonPost)
Defense contractor Northrop Grumman Corporation (NYSE:NOC)’s first-quarter net income fell 3 percent as government defense spending cuts reduced sales at some of its businesses. The company, based in Falls Church, Va., said Wednesday that it earned $489 million, or $2.03 per share, down from $506 million, or $1.96 per share, in the same quarter the year before. The recent quarter’s results are based on 241 million outstanding shares, while last year’s are based on 258 million. Excluding one-time items, the company posted an adjusted profit of $1.94 per share for the recent quarter. Revenue edged down 1.5 percent to $6.1 billion from $6.2 billion.
Major contractors report little damage from sequestration (WashingtonPost)
Defense contractors warned the automatic spending cuts known as sequestration would cause layoffs and facility closures, but nearly two months in, the biggest companies are reporting only a slight drop in sales. Falls Church-based contracting giant General Dynamics Corporation (NYSE:GD) saw its profit hit $571 million in the first quarter of the year, up 1.2 percent from the same period last year. Revenue dropped 2.3 percent to $7.4 billion. …At neighboring contractor Northrop Grumman Corporation (NYSE:NOC), profit and sales were essentially flat. The company reported profit of $489 million, down just over 3 percent from the same period a year ago. Sales hit $6.1 billion, down slightly from the first three months of 2012.
Northrop Receives Hawkeye Software Sustainment Funds (Afcea)
Northrop Grumman Corporation (NYSE:NOC), Bethpage, N.Y., is being awarded a $23,000,000 firm-fixed-price delivery order against a previously issued basic order agreement for Full Rate Production Lot 1 software sustainment support of the E-2D Advanced Hawkeye aircraft. This delivery order provides all aspects of software management support, including the update and maintenance through the life cycle support and to all the software elements of the weapon system, subsystem and support element levels of the aircraft software. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
FAA formally approves Boeing 787 battery fix (ET)
The US Federal Aviation Administration on Thursday filed formal approval of The Boeing Company (NYSE:BA)‘s 787 battery fix that will clear the way for the troubled aircraft to fly again. The FAA’s new airworthiness directive for the 787 requires the installation of new and auxiliary power unit batteries and their respective chargers, as well as battery enclosures and ducts. “Once the aircraft are in compliance with the AD, they can return to service,” an FAA spokesman said in an email. The FAA filing in the Federal Register is set to take effect Friday. In January the FAA grounded all 787s in service after two incidents on aircraft already in commercial service involving the batteries.
LOT Polish Airlines to Resume Dreamliner Flights in June (WSJ)
LOT Polish Airlines on Thursday resumed ticket sales for flights operated using The Boeing Company (NYSE:BA) +1.45% 787 Dreamliner jet after more than three months of a global grounding. The only European airline to have taken delivery of Boeing’s innovative jet, LOT had two Dreamliners in service, with one midair, when in January the U.S. Federal Aviation Administration ordered a grounding after incidents involving the airplane’s batteries. European regulators this week approved Boeing’s proposal to modify the lithium-ion batteries on the jet.
Will Boeing Move Some of its Aircraft Design out of Washington? (WSJ)
On an earnings call today, The Boeing Company (NYSE:BA) discussed results that beat Wall Street expectations despite the grounding of the 787 Dreamliner. It also revealed a small but interesting piece of news about the future of its aircraft designers — but you needed to have a keen sense of grammar to pick up the significance of it. Boeing chief executive Jim McNerney said the company was moving forward with a likely end-of-year launch of its planned new version of its hugely-popular 777, dubbed the 777X. In his opening remarks, Mr. McNerney said the following (emphasis ours): “The business case for the 777X also continues to mature as we further evaluate options including design and production locations.”
Air Canada confirms $714M financing for new planes (CTVNews)
Air Canada confirmed Wednesday that it plans to tap into a novel way — at least in Canada — of financing the purchase of five new The Boeing Company (NYSE:BA) 777 aircraft. The Montreal-based airline announced the private offering of three tranches of enhanced equipment trust certificates (EETC) worth US$714.5 million. The aircraft are scheduled for delivery between June 2013 and February 2014. Loxley Aviation Ltd. has been created to facilitate Air Canada’s inaugural offering, Moody’s Investors Service said in assigning ratings of Baa3 to tranche A, B1 to tranche B and B3 to tranche C.
Pentagon sees risks, progress on Lockheed’s F-35 jet (ET)
Top Pentagon officials on Wednesday cited both progress and continuing risks on the $396 billion Lockheed Martin Corporation (NYSE:LMT) F-35 fighter program, and said Singapore had shown “tremendous interest” in the next-generation stealth fighter. Air Force Lieutenant General Christopher Bogdan, the Pentagon’s F-35 program chief, told a subcommittee that he expects to reach agreement with Lockheed about a sixth and seventh batch of F-35s by the end of May, followed by a contract award in June. Sources familiar with the matter said the deal would cover 71 planes and would be worth about $9 billion. Bogdan told a subcommittee of the Senate Armed Services Committee that Singapore would likely decide by this summer whether to buy the new warplane.
Israeli Aerospace reaches deal with Lockheed to make wings for F-35 next generation warplane (WashingtonPost)
Israel Aerospace Industries says it has signed a long-term contract with U.S. defense giant Lockheed Martin Corporation (NYSE:LMT) to produce wings for the F-35 next-generation fighter jet. The state-owned company said Tuesday the contract is for 10 to 15 years and could generate up to $2.5 billion in sales. It says the wings will be made at an Israeli facility that already produces wings for Lockheed’s F-16 warplane. The F-35 is the Pentagon’s most expensive weapons program, with an estimated cost of nearly $400 billion. The program aims to replace a wide range of existing aircraft for the U.S. and several partner countries.
Lockheed Martin encourages STEM education at youth event (PhillyBurbs)
On a normal day, engineers at Lockheed Martin Corporation (NYSE:LMT) in Newtown Township are busy working on satellites, rockets and other space vehicles. On Thursday, however, they were launching model rockets, serving snow cones, building marshmallow satellites and performing other tasks with about 300 children as part of its Young Minds at Work program. The annual event, held in conjunction with Take Your Children to Work Day, is a hands-on opportunity for kids ages 6 to 18 to learn more about science and engineering careers. Held at sites throughout the country, the program is open to any child sponsored by a Lockheed Martin employee.
How Congress funnels money to single defense contractors (Philly)
The Army wants $551 million to buy surface-to-air missiles from Lockheed Martin Corporation (NYSE:LMT). The Navy wants to spend $157 million the aerospace giant’s KC-130J tanker plane. The Air Force has $291 million worth of JASSM missiles on its wish list. Altogether, defense procurement programs worth $6.9 billion name Lockheed Martin as their sole contractor. And they’re not the only one: 14 companies, including The Boeing Company (NYSE:BA), Raytheon and Northrop Grumman, were the only contractors listed on programs totaling $100 million or more. Congress is now in the midst of its secretive spending process, with members of the Appropriations Committees of the House and Senate considering programmatic and language requests submitted by their colleagues — increases or decreases in the amount spent, or changes in emphasis in each program in the federal budget.
Rockwell Collins PT Raised to $65.00 at Imperial Capital (COL) (MideastTime)
Research analysts at Imperial Capital upped their target price on shares of Rockwell Collins, Inc. (NYSE:COL) from $64.00 to $65.00 in a report released on Wednesday, AnalystRatingsNetwork.com reports. The firm currently has an “in-line” rating on the stock. Rockwell Collins, Inc. (NYSE:COL) traded up 0.52% on Wednesday, hitting $61.67. Rockwell Collins has a 52-week low of $46.37 and a 52-week high of $64.16. The stock’s 50-day moving average is currently $62.11. The company has a market cap of $8.498 billion and a price-to-earnings ratio of 14.25.
Stocks to Watch – Lockheed Martin Corporation (NYSE:LMT), Rockwell Collins, Inc. (NYSE:COL). (TechSonian)
King Penny Stocks is an elite financial community for investors and traders alike who are looking to potentially gain financial freedom through the markets on undervalued companies and “in-play” momentum penny stocks. …Rockwell Collins, Inc. (NYSE:COL) was showing an upward trend during the previous trading session. Rockwell Collins, Inc. (NYSE:COL) reported the increase of 0.52% to close at $61.67 with the overall traded volume of 1.08 million shares. Rockwell Collins, Inc. (NYSE:COL) has the total of 135.67 million outstanding shares. During last trade, the company’s minimum price was $61.63, while it touched its highest price of $62.50. Its market capitalization was $8.37 billion. Its beta value stands at 1.15 times and earnings per share was $4.31. Company’s year to date performance remained optimistic with the climb of 6.02%. If we look at the last 6 months of trade, that is in the bullish zone with the rise of 16.91%.
