S&P Cautions On Defense Companies' Performance

Jan. 13, 2005
By John S. McClenahen Stock prices for some U.S. defense contractors have risen in recent days, a reaction to expectations they'll get significantly more business in the wake of the Sept. 11 terrorist attacks on the U.S. But, pointing out that any ...
ByJohn S. McClenahen Stock prices for some U.S. defense contractors have risen in recent days, a reaction to expectations they'll get significantly more business in the wake of the Sept. 11 terrorist attacks on the U.S. But, pointing out that any near-term U.S. response will rely on existing equipment and ordnance, Standard & Poor's (S&P), New York, is cautioning against expecting a sudden and dramatic increase in companies' performance. "Any positive financial impact on U.S. defense firms from higher budget outlays would necessarily be realized over an extended period of time and could be diffused over many companies," stresses S&P. What's more, "defense contractors could need to invest in infrastructure and inventories, requiring cash outlays, before receiving government payments tied to production rates."

Popular Sponsored Recommendations

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

Beware Extreme Software

Sept. 24, 2023
As a manufacturer, you understand the importance of staying ahead of the curve and being proactive in your approach to technology. With the rapid pace of change in the industry...

Digitally Transforming Data and Processes With Product Lifecycle Management

Oct. 29, 2023
Manufacturers face increasing challenges in product development as they strive to consistently deliver improved results. Discover how industry leaders are improving time-to-market...

The Ultimate Ecommerce Excellence Checklist

Oct. 2, 2023
Scaling ecommerce operations is no easy task when your business is moving fast. Assess your current ecommerce maturity level and set optimization priorities with this practical...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!