I found 14 Big US Defense Contractor Corps with Pretax Earnings above $100 mil each in either the 4Q 2011 or in the 4Q 2010, and which have released their 4Q 2011 earnings so far. Not all of the sales of these 14 Big US Defense Contractors are made to the US Government, but a substantial portion of them are.
These 14 Big US Defense Contractors registered a Total Pretax Earnings increase of modest 3% in the 4Q 2011, a significant deceleration from earlier periods.
This earnings growth downturn by these Big US Defense Contractors is really good news for US taxpayers. Let's hope it continues. It is critical for the long-term US deficit to remove as much of these excess profits as possible.
These windfall profits have been generated by these Big US Defense Contractors for the entire 2000s decade, wreaking absolute havoc on the US economy.
When you focus on the last 7 years (2001 through 2008) of the Bush/Cheney Presidency, the Total Core Pretax Income of these above 14 Big US Defense Contractors more than tripled.
Many in the US Congress, primarily Republicans but also many Democrats, have been major facilitators of these excess profits of the Big US Defense Contractors. This is one of the many reasons the favorable approval rating of the US Congress is now so low, and is headed much lower. The Occupy Movement is spot on in calling out these Congress members.
Below here are these 4Q 2011 Pretax Earnings (PTI), along with a comparison with the prior year’s quarter amounts, of these 14 Big US Defense Contractor Corps.
..............................................................................Increase
.................................................PTI.........PTI.......(Decrease)
.................................................4Q...........4Q..................
...............................................2011.......2010....Amount....%
.................................................(millions of dollars)
General Dynamics(1)..............1,022......1,043........(21).....-2%
Lockheed Martin.......................966......1,056........(90).....-9%
Raytheon(2)..............................821........788..........33.......4%
Northrop Grumman(3).............782........639.........143......22%
Precision Castparts...................457........385..........72......19%
L-3 Communications(4)............355........398..........(43)....-11%
Goodrich(5)..............................340........198.........142......72%
Harris Corp...............................201........222..........(21).....-9%
Textron(6)................................197..........45.........152.....338%
Rockwell Collins.......................194.........191.............3........2%
SAIC(7)....................................186.........240.........(54)....-23%
KBR..........................................130.........142.........(12).....-8%
CSC(8)......................................107.........230.......(123)....-53%
Alliant Techsystems...................86.........101.........(15)....-15%
Total all 14............................5,844......5,678.........166.......3%
(1) General Dynamics 2011 PTI excludes Intangible Asset Impairment Charge.
(2) Raytheon 2010 PTI excludes Loss on Debt Retirement.
(3) Northrop Grumman 2010 PTI excludes Debt Redemption Charge.
(4) L-3 Communications 2011 PTI excludes Goodwill Impairment Charge.
(5) Goodrich 2010 PTI excludes Loss on Debt Extinguishment.
(6) Textron 2011 PTI excludes Intangible Asset Impairment Charge and Mark-to-Market Finance Receivable Adjustment Charge.
(7) SAIC 2011 PTI excludes City Time Loss Provision.
(8) CSC 2011 PTI excludes both National Health Service Contract Charges and Goodwill Impairment Charge.
