SOURCE: The Bedford Report

The Bedford Report

February 10, 2011 11:25 ET

Defense Contractors Come Under Fire

The Bedford Report Provides Analyst Research on Boeing & Northrop Grumman

NEW YORK, NY--(Marketwire - February 10, 2011) - The Aerospace & Defense Industry is in transition as the US Defense Department slows down the growth seen during the Bush years. The Defense Department accounts for close to 20 percent of US federal spending and roughly half of discretionary, non-mandated spending -- making it a target for lawmakers looking for ways to cut the ballooning budget deficit. The chief executives of 14 US defense companies urged Congress to pass a defense spending bill for fiscal 2011 instead of extending the current stopgap measure that keeps funding at 2010 levels. Defense contractors warned that the defense industry could face schedule delays, higher costs and other dangers unless lawmakers pass a fiscal 2011 defense appropriations bill. The Bedford Report examines the outlook for companies in the Aerospace & Defense Industry and provides research reports on Boeing Co. (NYSE: BA) and Northrop Grumman (NYSE: NOC). Access to the full company reports can be found at:

www.bedfordreport.com/2011-02-BA

www.bedfordreport.com/2011-02-NOC

The US government threw yet another curveball at Major defense contractors earlier this week when the Pentagon said it would not support consolidation between major military contractors. Defense Undersecretary Ashton Carter explains that while the Pentagon welcomes mergers, spinoffs and divesture that lead to lower production costs, mergers between big contractors would raise concerns over the industry's stability.

The Bedford Report releases regular market updates on the Aerospace & Defense Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

In recent earnings news, Boeing posted fourth-quarter earnings that slipped 8 percent year-on-year, to $1.16 billion, or $1.56 per share. Revenues at Boeing's commercial airplane division in the fourth quarter 2010 fell 11 percent to $8.2 billion, compared to the same quarter of the previous year.

Yesterday Northrop Grumman said it earned $376 million, or $1.27 per share in its fiscal fourth quarter, compared with $413 million, or $1.31 per share, in the same quarter of 2009.

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