Monday, August 12, 2013

US Big Defense Contractor Corps 2Q 2013 Earnings Up 8%

I found 16 US Big Defense Contractor Corps which generated After-tax Net Income from continuing operations of more than $100 mil in either the 2Q 2013 or the 2Q 2012.

These 16 US Big Defense Contractor generated Total Earnings growth of 8% in the 2Q 2013 over the 2Q 2012.

Many of these Defense Contractor Corps have robust common stock buyback programs.  Thus the total EPS growth will exceed this 8% total earnings growth.  For instance, Northrop Grumman's 1.7% earnings growth turns into a 9.0% EPS growth.

US Dept of Defense Secretary Chuck Hagel has done an exceptional job in wisely and creatively finding ways to reduce the US Dept of Defense Budget to significantly reduce the number of furloughed days of Dept of Defense civilian employees.

But is it really fair for so many of the US Big Defense Contractors to continue to generate excellent earnings increases during the US Congress-mandated sequester spending cuts?

Below here are the earnings of these 16 US Big Defense Contractor Corps for the 2Q 2013 and for the comparable 2Q 2012:
 

2Q 2013 2Q 2012

Net Net

Income Income

From e

Continuing Continuing Increase Increase

Operations Operations (Decrease) (Decrease)

mil $s mil $s Amount %
Big US Defense Contractors








Big 4



Lockheed Martin                     859                     781                       78 10%
General Dynamics                     640                     634                         6 1%
Raytheon                     493                     471                       22 5%
Northrop Grumman                     488                     480                         8 2%

           
Total Big 4                 2,480                 2,366                     114 5%





Remaining 12



United Technologies                 1,552                 1,466                       86 6%
Boeing                 1,289                 1,128                     161 14%
Honeywell                 1,021                     902                     119 13%
L-3 Communications                     436                     342                       94 27%
Textron                     185                     191                       (6) -3%
Harris Corp                     164                     166                       (2) -1%
Rockwell Collins                     161                     161                        -   0%
SAIC                     154                     162                       (8) -5%
Precision Castparts                     141                       17                     124 729%
Fluor                     114                     172                     (58) -34%
KBR                       90                     104                     (14) -13%
CSC                       81                     117                     (36) -31%





Total Remaining 12                 5,388                 4,928                     460 9%





Grand Total all 16                 7,868                 7,294                     574 8%