WASHINGTON: While the House has voted to extend the debt limit to May, the automatic federal spending cuts called sequestration still loom $90 billion large, half that bill for the Pentagon alone. Yet, as fourth quarter earnings calls begin, the defense industry and its stock values remain remarkably resilient. What gives? Or rather, what isn’t…
By Sydney J. Freedberg Jr.ROC-X – The solution to organic precision strike capabilities
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[UPDATED 3:30 pm on 1/8/2013 with revised CSBA estimates] WASHINGTON: The battle of the fiscal cliff is over, but the war to stop sequestration rages on – and President Obama’s decision that his new Secretary of Defense should be former Sen. Chuck Hagel, the Republican other Republicans love to hate, makes it even harder to…
By Sydney J. Freedberg Jr.WASHINGTON: While anxiety over sequestration dominated yesterday’s annual meeting dominated of the Aerospace Industries Association, its member companies actually did pretty well in 2012. Civil aircraft sales, up 14 percent since 2011, and arms exports, up 12 percent, grew faster than Pentagon spending declined, which was just 3.4 percent. Overall, aerospace and defense profits are…
By Sydney J. Freedberg Jr.Paris and Berlin are in a bind as British-based BAE and Franco-German giant EADs, the parent company of Airbus, seek approval to merge into the world’s largest aerospace company. If the French and German governments accept the companies’ current merger terms, their ability to influence the new tri-national behemoth will be sharply diminished and they…
By Sydney J. Freedberg Jr.Today’s surprise announcement that UK-based arms-maker BAE and Airbus parent EADS are exploring a merger — sort of, maybe, if their respective boards approve an extremely complex deal that creates a so-called “dual-listed” entity in which each partner still issues its own separate stock — sent shockwaves throughout Europe and through the commercial aviation industry…
By Sydney J. Freedberg Jr.
Allied Spending Probed For U.S. Budget Clues; Strategy Questioned
WASHINGTON: There are two anchors of conventional views on the U.S. DoD budget outlook. The first is that it is cyclical and headed down and will follow the same trajectory as defense budgets in the last four cycles since the late 1940s. The second anchor is that the U.S. can and should “pivot” its strategy…
By Byron Callan