The Big Four US Defense Contractors have now all released their 4Q 2012 earnings.
How did they do?
Well, frankly not well.
The Total Adjusted After-tax Net Income of these Big Four US Defense Contractors for the 4Q 2012 was $2,246 mil, which was a 16% earnings decline from the $2,661 mil earned in the 4Q 2011.
This Adjusted After-tax Net Income above was used when this amount was
disclosed in the company's earnings release, and it excludes Special,
Unusual Items which are significant in amount relative to Reported Net
Income.
This 16% earnings decline by the Big Four US Defense Contractors was an earnings reversal from the first nine months of 2012, where the like Total Earnings increase was 3%.
It's pretty clear that a non-action US Congress was the main driver of this major earnings reversal of these Big Four US Defense Contractors.
The Republicans in the US Congress stubbornly only want to reduce costs to resolve the remaining portion of the US Debt Grand Bargain. The President and the Democrats in the US Congress want a fair balance between US Government Cost Cuts and additional US Tax Revenues, including the closing of some Corporate Tax Loopholes.
A substantial majority of US Citizens agree with the President on a fair balance of Cost Cuts and Additional Tax Revenues approach.
The Republicans in the US Congress, being protectorates of US Big Corporations, do not want them to have to pay a dime of Additional Tax Revenues, despite the fact that their effective tax rate paid now is extremely low, the result of both a massive number and a massive amount of Tax Loopholes the US Congress has bestowed on them.
Instead of moving the country's economy forward with wisely-designed fiscal stimulus, which is desperately needed in this continuing very weak US economy, these Republicans in the US Congress are instead only focusing all of their efforts on reducing the US Debt, and by doing so only with Cost Cuts period, including massive cuts to both Medicare Benefits and Social Security Benefits.
In addition to the Big Four US Defense Contractors, I found another 8 Corporations,which have already released their 4Q 2012 earnings, and which also derive a very significant amount of their Revenues from the US Government, and which also had Adjusted Net Income of at least $100 mil in either the 4Q 2012 or in the 4Q 2011.
How did these Big 8 Corps do in the 4Q 2012?
Well, their Total Earnings increased by only a meager 1%.
Below here are the Adjusted After-tax Net Income of each of these 12 US Defense Contractor Corps in the 4Q 2012 and in the 4Q 2011:
| 4Q 2012 | 4Q 2011 | |||
| Non-GAAP | Non-GAAP | |||
| Adjusted | Adjusted | Increase | Increase | |
| Big | Net | Net | (Decrease) | (Decrease) |
| Corp | Income | Income | Amount | % |
| mils of $s | mils of $s | mils of $s | ||
| Defense Contractors | ||||
| Big Four | ||||
| Lockheed Martin | 713 | 868 | (155) | -18% |
| Raytheon | 529 | 593 | (64) | -11% |
| Northrop Grumman | 513 | 486 | 27 | 6% |
| General Dynamics | 491 | 714 | (223) | -31% |
| Total Big Four | 2,246 | 2,661 | (415) | -16% |
| Remaining Eight | ||||
| United Technology | 1,176 | 1,269 | (93) | -7% |
| Boeing | 1,116 | 1,050 | 66 | 6% |
| Honeywell | 873 | 827 | 46 | 6% |
| L-3 Comms | 212 | 223 | (11) | -5% |
| Textron | 163 | 137 | 26 | 19% |
| Harris Corp | 139 | 141 | (2) | -1% |
| RockwellCollins | 132 | 130 | 2 | 2% |
| SAIC | 112 | 117 | (5) | -4% |
| Total Remaining Eight | 3,923 | 3,894 | 29 | 1% |
| Total all 12 | 6,169 | 6,555 | (386) | -6% |
