US arms contractors to win big from defense budget

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WASHINGTON, Jan 30 (Reuters) - The proposed 2005 U.S. defense budget spells good news for U.S. contractors, especially Boeing Co. (BA.N: Quote,Profile, Research) , given the huge boosts for missile defense and a high-tech program to modernize the U.S. Army.

The Pentagon's budget request for fiscal 2005, mistakenly posted on the Internet ahead of Monday's scheduled release, showed a $1.2 billion increase in missile defense spending and a $1.5 billion jump on the Future Combat System. Boeing has a large stake in both programs.

The budget also calls for spending almost $4.6 billion for Lockheed Martin Corp.'s (LMT.N: Quote, Profile, Research) Joint Strike Fighter, or F-35, up from $4.25 billion requested in 2004, and $4.7 billion for the company's F/A-22 next-generation fighter jet.

Spending was to remain nearly steady at just over $3 billion for Boeing's F/A-18E/F Super Hornet attack jets.

The U.S. Defense Department 2005 budget seeks $1.2 billion in spending for the RAH-66 Comanche, a new armed scout helicopter being developed by Boeing and United Technologies Corp.'s (UTX.N: Quote, Profile, Research) Sikorsky Aircraft, up from just over $1 billion in the current year, which ends Sept. 30.

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