Military aid to Ukraine results in higher revenues for US defence companies
Pravda Ukraine
Russia’s full-scale invasion of Ukraine has led to a rise in defence company revenues as the US and European governments replenish their stockpiles of weapons after handing them over to Kyiv.
Source: Reuters
Details: The report notes that US defence contractors Lockheed Martin, General Dynamics and others expect orders for hundreds of thousands of artillery projectiles, hundreds of Patriot missile interceptors, and armoured vehicles to improve their results in the coming quarters.
“We’ve gone from 14,000 (artillery) rounds per month to 20,000 very quickly. We’re working ahead of schedule to accelerate that production capacity up to 85,000, even as high as 100,000 rounds per month,” said Jason Aiken, Chief Financial Officer of General Dynamics.
The General Dynamics Combat Systems unit, a producer of armoured vehicles, tanks and artillery used in Ukraine, saw its revenues increase by almost 25% year-on-year.
RTX, the company that manufactures AMRAAM (air-to-air missiles – Ekonomichna Pravda) missiles used in Ukraine, says it has received US$3 billion in orders to replenish Ukraine’s and the US military stockpiles since Russia’s invasion in February 2022 and expects more.
Furthermore, Northrop Grumman’s Defence Systems segment sales increased by 6% in the third quarter due to rising demand for ammunition and rocket engines used in guided multiple launch rocket systems (MLRS).
The news agency emphasises that such reports are part of a global trend. Notably, Sweden’s Saab raised its sales forecast for the whole year, whereas Germany’s Rheinmetall reported that its third-quarter profit jumped due to solid demand for weapons and ammunition.
The report adds that executives at several defence companies also expressed concern that a lack of skilled workforce and supply chain issues remain a constraint on their ability to fulfil orders.
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