War in Ukraine boosts big US defense contractors – Reuters
Russia's full-scale war of Ukraine has led to profits increase in defense company revenues as the US and European governments replenish their weapons stockpiles after they were handed over to Kyiv, according to Reuters.
Some of the biggest US defense contractors, such as Lockheed Martin and General Dynamics, reported a surge in revenue as governments around the world, including the US increased their demand for weapons and ammunition.
We went from 14,000 artillery rounds per month to 20,000 very quickly. We are working ahead of schedule to increase production capacity to 85,000 and even 100,000 rounds per month, said General Dynamics CFO Jason Aiken.
The General Dynamics Combat Systems division, which produces armored vehicles, tanks and artillery used in Ukraine, increased its revenues by almost 25% compared to the same period last year.
RTX, which manufactures AMRAAM missiles used in Ukraine, said that since Russia's war in February 2022, it has received $3 billion in orders to replenish Ukraine's and the US military stockpiles and expects more.
Such reports are part of a global trend. Sweden's Saab raised its sales forecast for the whole year, and Germany's Rheinmetall reported that its third-quarter profit jumped due to strong demand for weapons and ammunition.
Ukraine's President Volodymyr Zelensky says the state and the US will start producing modern weapons, including air defense systems.
This is a new level of our unity. Co-production in the defense sector with the United States is a historic event, Zelensky emphasized.
Such cooperation will provide a new industrial base and new jobs. It is noted that Ukraine will be able to produce, in particular, air defense.
We are preparing to create a new defense ecosystem together with the United States to produce weapons to further strengthen freedom and protect life together. This will have global positive results, the Head of State noted.
