Military aid to Ukraine has led to an increase in the revenues of US defense companies
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Russia’s full-scale invasion of Ukraine has boosted revenues for defense companies as the US and European governments replenish their stockpiles of weapons after handing them over to Kiev.
About this informs Reuters.
It is noted that US defense contractors, Lockheed Martin, General Dynamics and others, expect orders for hundreds of thousands of artillery shells, hundreds of Patriot interceptors and orders for armored vehicles to boost their results in the coming quarters.
“We went very quickly from 14,000 artillery shells per month to 20,000. We are working ahead of schedule to increase production capacity to 85,000 and even 100,000 shells per month,” said General Dynamics CFO Jason Aiken.
Thus, the division of General Dynamics Combat Systems, which produces armored vehicles, tanks and artillery used in Ukraine, increased its revenues by almost 25% compared to the same period last year.
RTX, which makes the AMRAAM (air-to-air missile) missiles used in Ukraine, said it had received $3 billion in military stockpile orders since Russia invaded in February 2022. of Ukraine and the USA, and expects more.
In addition, Northrop Grumman’s defense systems segment sales rose 6% in the third quarter, driven by strong demand for munitions and rocket motors used in guided missile launch systems (LMS).
The publication emphasizes that such messages are part of a global trend. Sweden’s Saab raised its full-year sales forecast, while Germany’s Rheinmetall said third-quarter profit jumped on strong demand for weapons and ammunition.
It added that executives at several defense companies also warned that a lack of skilled labor and supply chain issues continued to limit their ability to fill orders.
Economic truth.
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