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Up2Late Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-27-06 02:32 PM
Original message
Defense profits up, Raytheon may sell aircraft unit (Reuters)
(Wow, things really are great in America!) :sarcasm:

UPDATE 3-Defense profits up, Raytheon may sell aircraft unit


Thu Jul 27, 2006 9:45am ET137

(Recasts, wraps in Northrop Grumman profit, adds share prices)

By Bill Rigby

NEW YORK, July 27 (Reuters) - Raytheon Co. (RTN.N: Quote, Profile, Research) and Northrop Grumman Corp. (NOC.N: Quote, Profile, Research) reported greater-than-expected profit increases on Thursday as the top-tier defense contractors benefited from strong U.S. government spending on military electronics and civilian technology projects.

Raytheon, best known for its Tomahawk and Patriot missiles, also said it was looking at selling or spinning off its aircraft division, which makes Hawker business jets, setting up a potential multibillion-dollar deal or initial public offering.

The two companies, along with rivals Lockheed Martin Corp. (LMT.N: Quote, Profile, Research) and General Dynamics Corp. (GD.N: Quote, Profile, Research), have been thriving on high levels of U.S. defense spending over the past few years, boosted by spending on U.S. military operations in Iraq and Afghanistan.

Each of those companies this week reported better-than-expected increases in profit for the second-quarter.

(more at link) <http://today.reuters.com/news/articleinvesting.aspx?type=companyNews&storyid=213582+27-Jul-2006+RTRS&WTmodLoc=BizArt-L1-CompanyNews-3>
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Dover Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-27-06 04:46 PM
Response to Original message
1. Killing for Profit....here's alot more about Raytheon from CorpWatch:
As I've said before, the hype about Border Security that came out of the blue and was suddenly a HUGE issue spread across all the media - talking heads, radio, newspapers - was a hyped crisis towards an end, not least of which was to create the need to hand out more of your dollars to the corporate backers of Bush/Cheney. And Raytheon was/is always at or near the front of the line for these handouts. More on the border contracts here:

http://www.corpwatch.org/article.php?id=13597
________________

Raytheon means "light from the gods." Makers of "Bunker Buster" bombs, Tomahawk and Patriot missiles, this company loves big noises and large civilian casualty counts. When a missile killed 62 civilians in a Baghdad market, that was Light from the Gods.

CEO: William H. Swanson
Military contracts 2005: $9.1 billion
Campaign contributions in 2004: $954,150 (defense related)

This company loves to make things that go boom and kill lots of people such as Patriot & Tomahawk missiles including a missile that struck Baghdad market Shu'ale, killing at least 62 civilians, during the second Gulf War. About 100 Raytheon million dollar land-attack cruise missiles were lobbed at Afghanistan from U.S. Navy ships since October 7th, fifty in the opening salvo alone.

Raytheon also makes the "bunker buster" GBU- 28, a 5,000-pound bomb and missiles like the TOW, Maverick and Javelin, all being used in Operation Enduring Freedom. In addition to missiles, Raytheon also builds sensors and radars used on unmanned and manned reconnaissance airplanes used extensively in Afghanistan.

The company has paid millions of dollars in fines for illegal activities. In October 1994, Raytheon paid $4 million to settle government charges that it had inflated the cost of a $71.5 million radar contract. In October 1993, Raytheon paid out $3.7 million to settle U.S. government charges that it had inflated the cost of Patriot missiles. The year before the company paid out $2.75 million for overpricing missile test equipment. In March 1990, Raytheon pleaded guilty in federal court to Judge Albert Bryan, Jr. in Virginia for illegally obtaining secret Air Force budget and planning documents. The company paid a million dollars in fines. In October 1987, the Justice Department signed on to a $36 million lawsuit originally filed by a former Raytheon employee, which alleged that Raytheon submitted false claims for work done on missiles.

One of Raytheon's more secretive subsidiaries is E-Systems, whose major clients have historically been the CIA and other spy agencies like the National Security Agency and the National Reconnaissance Office. An unnamed Congressional aide told the Washington Post once that the company was ''virtually indistinguishable'' from the agencies it serves. ''Congress will ask for a briefing from E- Systems and the (CIA) program manager shows up,'' the aide is quoted as saying. ''Sometimes he gives the briefing. They're interchangeable.''..cont'd

http://www.corpwatch.org/article.php?list=type&type=13


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Up2Late Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-27-06 06:28 PM
Response to Reply #1
2. So you think the "Border Security" thing was mainly a handout to...
...Raytheon?

Humm, interesting.

I always just figured it was pandering to the extreme RW.
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Dover Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-27-06 06:41 PM
Response to Reply #2
3. Can't it be both?
These guys often create crisis where one didn't exist and fan the flames through the media. You can usually spot the hype when some issue suddenly saturates the media with a certain
dramatic flare.

They profit from everything they do.....or hadn't you noticed?
And these things always serve multiple purposes and partners.
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Up2Late Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-27-06 07:29 PM
Response to Reply #3
5. Oh I noticed, I just hadn't figured this one out yet.
You might me on to something here, keep us updated if you learn more on these crooks.
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Vidar Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jul-27-06 07:16 PM
Response to Original message
4. As long as the arms merchants & oil companies are going great guns,
I feel much safer.
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Up2Late Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jul-28-06 06:23 PM
Response to Original message
6. kick n/t
:kick:
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