Defense Firms Up Lobbying in Face of Pentagon Cuts (LMT, GD, RTN, NOC)
Government contractors Lockheed Martin Corp. (NYSE: LMT), General Dynamics Corp. (NYSE: GD), and Raytheon Co. (NYSE: RTN) increased their lobbying costs by 10% in 2011, to $33.4 million, as the US defense budget faces cuts proposed by the Obama administration…
Government contractors Lockheed Martin Corp. (NYSE: LMT), General Dynamics Corp. (NYSE: GD), and Raytheon Co. (NYSE: RTN) increased their lobbying costs by 10% in 2011, to $33.4 million, as the US defense budget faces cuts proposed by the Obama administration and now being considered by Congress.
The Washington Post reports that Lockheed spent $15 million on lobbying in 2011, up 19% from 2010. General Dynamics spent $11.3 million, an increase of 4.6% and Raytheon boosted lobbying spending by 2.3% to $7.1 million. Northrup Grumman Corp. (NYSE: NOC) cut spending by -19% last year, to $12.8 million as a result of the spin-off of its shipbuilding unit.
The contractors are trying to save current programs that could be looking at severe reductions if the proposed cuts of $500 billion over 10 years are approved by Congress.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
