Contractor Earnings Rise Amid U.S. Budget Cuts, Shutdown
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The biggest U.S. defense contractors, led by Lockheed Martin Corp. and Northrop Grumman Corp., have endured federal budget cuts and a partial government shutdown with little harm so far to their profits.
Lockheed and Northrop were among the leading federal suppliers reporting third-quarter earnings that beat analysts’ estimates even as sales declined. The top five U.S. contractors’ shares have soared this year, with Northrop climbing 56 percent. Its shares rose 4 percent to $105.56 -- the biggest advance since September 2010 -- after the company raised its full-year profit forecast today.