Boeing, General Dynamics Profits Exceed Estimates

[NNN0LHI]

http://www.bloomberg.com/apps/news?pid=20601087&sid=apw8a0KFM6BI&refer=home

By Edmond Lococo and Jon Steinman

April 25 (Bloomberg) -- Boeing Co., General Dynamics Corp. and Raytheon Co. reported higher first-quarter profits than analysts estimated as sales rose on record U.S. defense spending and surging demand for commercial and business jets.

Boeing, the world's second-largest maker of commercial airplanes, said net income climbed 27 percent to $877 million as it delivered on record aircraft orders. General Dynamics' profit rose 14 percent to $440 million, and Raytheon's rose 15 percent to $314 million on higher missile sales.

Boeing, General Dynamics and Raytheon, the second-, fourth- and fifth-largest Defense Department suppliers, all reported higher military sales. Monthly expenditures for the war in Iraq increased to $7.4 billion in fiscal 2006 from $4.4 billion in fiscal 2003, the non-partisan Congressional Research Service said in a March 16 report. That rose to $8.6 billion for the first two months of fiscal 2007, CRS said.

``With Boeing, the growth story is more on the commercial aircraft side, but they are also the second-largest U.S. defense contractor,'' said Richard Tortoriello, a New York-based analyst with Standard & Poor's. ``I expect the defense budget to keep growing, at least at a moderate pace, until either we begin pulling out of Iraq, or we have a new president.''

[rpannier]

1. With those profits will come their announcement of

massive lay-offs.

The two seem to go hand-in-hand

[Jcrowley]

2. Kick and Rec n/t

[NNN0LHI]

3. Defense contractors did great during the Vietnam War as well n/t