Pentagon: "Lot Of Money" Can Still Be Made In The Arms Business

Pentagon Says "Lot Of Money" Still To Be Made In Arms Business -- Reuters

(Reuters) - The Pentagon's chief weapons buyer on Wednesday reassured industry executives and investors that there was still "a lot of money" to be made in the defense business, despite mounting budget pressures that will limit spending on new arms programs.

Frank Kendall, defense undersecretary for acquisition, technology and logistics, said the budget outlook had clearly changed after a decade of continuous increases in U.S. military spending.

But he said the Pentagon's annual budget remained quite large -- and even a worst case scenario that would cut defense spending by an additional $50 billion or around 10 percent in fiscal year 2013 -- was "not the end of the world."

"We're going to work our way through this," Kendall told an investor conference hosted by Credit Suisse. "There's a lot of money still to be made."

Read more ....

My Comment: I admit that the Reuters headline caught my attention .... but it is true .... even with huge cuts forecast to hit the defense budget .... if you have the right product and price point and the Pentagon needs it .... you will have sales and you will make money.

2011 Was A Good Year For U.S. Foreign Arms Sales (Updated)

U.S. Triples Foreign Arms Sales In 2011 -- CNN

International weapons sales by the United States tripled last year to a record high of $66.3 billion, according to a congressional report that noted big fighter jet and helicopter purchases by Saudi Arabia.

The data by the non-partisan Congressional Research Service noted an "extraordinary increase" over 2010, saying the total U.S. figure accounted for almost 78 percent of sales globally.

Russia followed the United States at $4.8 billion with France at $4.4 billion, according to the report, "Conventional Arms Transfers to Developing Nations, 2004-2011."

Read more ....

More News On U.S. Foreign Arms Sales

Saudi deals boosted US arms sales to record $66.3 bln in 2011 -- Reuters
U.S. Arms Sales Make Up Most of Global Market -- New York Times
With $66.3 Billion In Agreements, U.S. Arms Sales Break Record In 2011 -- NPR
US arms sales nearly triple in 2011, researchers say -- AFP
Rocket-propelled sales figures: US arms sales abroad triple to record highs -- RT
U.S. responsible for 3/4 of global weapons sales, government says -- L.A. Times
US arms sales shoot to record levels -- Al Jazeera
U.S. weapons sales hit record high amid tepid economy -- Nextgov
US arms sales hit record high over deals with Arabian Gulf countries -- The National