Drastic and arbitrary US budget cuts are hindering the defence industry in a big way.Sequestration is the single worst piece of public policy in my 35 years of experience,said Clay Jones,CEO of leading defence contractor Rockwell Collins.We've laid off 150 in Iowa and the rest of the year will lay off another 150 throughout our enterprise.
That's just the tip of the iceberg.One of the biggest problems is,it is impossible to plan.2014 will be even worse.We already took 60 million in restructuring charges.We don't like it,but we're gonna manage well.
Our defence business went down 8% last year;it will go down another 10% this year.By 2015,however,our commercial business will grow 10%.There's a high demand for fuel-efficient aircraft.We're about 33-35% international.That will grow to over 40% by 2020.
We'll be paid eventually.The biggest impact will be on the cash flow.
We produce the helmet-mounted sight for the F-35 Lightning II Joint Strike Fighter-the most Buck Rogers thing in the aircraft,so I think we're secure in that project.
Senator Ben Cardin,D-Maryland,said he doesn't expect any progress in resolving the sequestration issue.
Rockwell says the world's leading aerospace and defence companies rely on them for smart communications and aviation electronics solutions.Their products span displays,electronic warfare/intelligence,navigation and guidance,precision targeting and weapons,space components and other engineering applications.
Rockwell Collins,Inc(COL)
No comments:
Post a Comment