Revenues of US defense companies are growing due to military actions in Ukraine – Kommersant

U.S. defense contractors, including Lockheed Martin and General Dynamics, expect earnings to rise in coming quarters due to orders for artillery shells, Patriot interceptor missiles and an expected surge in orders for armored vehicles due to military action in Ukraine, it says Reuters.

The agency reports that at the end of 2022, American defense contractors signed new contracts to directly supply weapons to Ukraine and replenish US stocks for supplies to Kyiv. As reported by Reuters, Lockheed Martin and General Dynamics presented financial results that were better than expected. The heads of these companies expect that in addition to the military conflict in Ukraine, the war between Israel and Hamas will also lead to an increase in demand in the near future, the agency claims.

“We very quickly moved from 14 thousand (artillery) “Kommersant”) shells per month to 20 thousand. We are working ahead of schedule to bring this production volume to 85 thousand, or even up to 100 thousand shells per month,” said Jason Aiken, chief financial officer of General Dynamics, on October 25 at a meeting with Wall Street analysts. Revenue at General Dynamics’ armored vehicles division Combat Systems grew nearly 25% year-on-year, Reuters reported.

RTX, which makes the AMRAAM missiles used in Ukraine, said in a meeting with analysts that it had received about $3 billion in orders to increase U.S. stockpiles to supply Kiev since hostilities began on Feb. 24, 2022. Sales of defense systems by Northrop Grumman also increased by 6% year-on-year, Reuters reports. The increase is reported to be due to increased demand for ammunition and rocket engines used in guided multiple launch rocket systems.

About what happens after the entry of Russian troops into Ukraine – in online broadcasts “Ъ”.