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US defense contractors see longer term benefits from war in Ukraine
Like other Western countries, the United States has turned to its own stocks to furnish Ukraine with shoulder-fired Stinger and Javelin missiles, for instance. These weapons from Lockheed-Martin and Raytheon Technologies were paid for some time ago.
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A Lockheed Martin F-35 aircraft is seen at the ILA Air Show in Berlin, Germany, April 25, 2018. (Reuters/Axel Schimidt)
U
S arms manufacturers are not cashing in directly from the thousands of missiles, drones and other weapons being sent to Ukraine, but they do stand to profit big-time over the long run by supplying countries eager to boost their defenses against Russia.
Like other Western countries, the United States has turned to its own stocks to furnish Ukraine with shoulder-fired Stinger and Javelin missiles, for instance. These weapons from Lockheed-Martin and Raytheon Technologies were paid for some time ago.
So these companies' first quarter results, due to be released in coming weeks, should not be especially fatter because of the rush to arm Ukraine as it fights off the Russian invasion.
But those US military weapons stockpiles being tapped for Kyiv will need to be replenished.
The Pentagon plans to use $3.5 billion earmarked for this purpose in a spending bill approved in mid-March, a Defense Department spokesman told AFP.
The Javelin anti-tank missile is made by a joint venture between Lockheed and Raytheon. The latter's Stinger anti-aircraft missile had ceased to be produced until the Pentagon ordered $340 million of them last summer.
"We are exploring options to more quickly replenish US inventories and backfill depleted stocks of allies and partners," the spokesman said.
