Ten Companies Profiting Most From War

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5. Raytheon (NYSE: RTN)
> Arm sales 2011: $22.5 billion
> Total sales 2011: $24.9 billion
> Total profit: $1.9 billion
> Total employment: 71,000
> Sector: Electronics, missiles

Raytheon, based in Waltham, Mass., is one of the largest defense contractors in the U.S. The company makes a wide range of defense products, including missiles such as the Tomahawk Cruise Missile. Arms sales totaled about $22.5 billion in 2011, comprising about 90% of the company’s total sales that year. However, these sales were down slightly from the $23 billion in arms sales in 2010.The slide hasn’t let up. Total sales in 2012 fell 1.5%, and Raytheon is expecting sales to fall 3% in 2013, a projection which doesn’t take into account the effects of sequestration on the company. Fortunately, the company can rely on overseas customers to somewhat offset weak sales at home. As of January, approximately 40% of the company’s backlog was booked overseas. The company expects approximately a 5% increase in international sales in 2013.

4. General Dynamics (NYSE: GD)
> Arm sales 2011: $23.8 billion
> Total sales 2011: $32.7 billion
> Total profit: $2.5 billion
> Total employment: 95,100
> Sector: Artillery, electronics, military vehicles, small arms/ammunition, ships

With 18,000 transactions worth $19.5 billion in 2011, General Dynamics was the third-largest contractor to the U.S. government. Of those contracts, approximately $12.9 billion worth went to the Navy, while an additional $4.6 billion went to the Army. The company reported just under $23.8 billion in arms sales in 2011, comprising 73% of the company’s total sales. Arms sales in 2011 were slightly below 2010 levels. The company employs approximately 95,000 workers worldwide and makes a host of products, including electric boats, tracked and wheeled military vehicles, and battle tanks. The company has expressed concern about the potential effects on U.S. military budgets due to sequestration, issuing layoff notices this week.

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3. BAE Systems
> Arm sales 2011: $29.2 billion
> Total sales 2011: $30.7 billion
> Total profit: $2.3 billion
> Total employment: 93,500
> Sector: Aircraft, artillery, electronics, military vehicles, missiles, small arms/ammunition, ships

BAE Systems was the largest non-U.S. company based on arms sales, bringing in $29.2 billion worth in 2011. This represented 95% of the company’s total sales that year. Yet 2011’s arms sales were lower than 2010’s, when the company sold $32.9 billion worth of arms. The products that BAE sells include the L-ROD Bar Armor System that shields defense vehicles, and the Hawk Advanced Jet Trainer that provides sophisticated simulation training for military pilots. In 2013, the company said its growth would likely come from outside the United States and Great Britain — its home market. BAE noted that its outlook for those two countries was “constrained,” likely due to the diminished presence in international conflicts and government budget cuts.

2. Boeing (NYSE: BA)
> Arm sales 2011: $31.8 billion
> Total sales 2011: $68.7 billion
> Total profit: $4.0 billion
> Total employment: 171,700
> Sector: Aircraft, electronics, missiles, space

Boeing was the second-largest U.S. government contractor in 2011, with about $21.5 billion worth of goods contracted that year. The Chicago-based company makes a wide range of arms, including strategic missile systems, laser and electro-optical systems and global positioning systems. Despite all these technologies, just 46% of the company’s total sales of $68.7 billion in 2011 came from arms. Boeing is the largest commercial airplane manufacturer in the world, making planes such as the 747, 757 and recently, the 787 Dreamliner. The company is also known for its space technology — Boeing had $1 billion worth of contracts with NASA in 2011.

1. Lockheed Martin (NYSE: LMT)
> Arm sales 2011: $36.3 billion
> Total sales 2011: $46.5 billion
> Total profit: $2.7 billion
> Total employment: 123,000
> Sector: Aircraft, electronics, missiles, space

Lockheed Martin notched $36.3 billion in sales in 2011, slightly higher than the $35.7 billion the company sold in 2010. The 2011 arms sales comprised 78% of the company’s total 2011 sales of $46.5 billion. As of 2011, the company employed 123,000 people worldwide. In the company’s aerospace and defense unit, Lockheed makes a wide range of products, including aircrafts, missiles, unmanned systems and radar systems. The company and its employees have been concerned about the effects of both the fiscal cliff and sequestration, the latter of which includes significant cuts to the U.S. Department of Defense. In the fall of 2012, the company planned on issuing layoff notices to all employees before backing down at the request of the White House.

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