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Project on Government Oversight
 

 

 

 

Defense Corporations Are Hurting and Need A Break, Right? WRONG!

October 15, 1996 

 

Defense corporations have bemoaned the decline in contracts from the Pentagon for so long and so loud that the impression has been created that the contractors are in bad shape and need help from the government, for example through subsidies for downsizing costs. The latest information, however, shows that defense corporation stocks are performing far better than the rest of the market - and the gap is growing. Although workers have been fired to help boost many of these stocks, the corporations themselves are far from desperate straits.

Change in Standard & Poor's Stock Index
Aerospace and Defense Index Market Index
500 Large Corps. During 1996, first three quarters +16% +11%
500 Large Corps. From 1991 to 1995 +153% +89%
Boeing During 1996, first three quarters +21% N/A
Boeing During 1995 +71% N/A

General Dynamics During 1996, first three quarters

+13% N/A
General Dynamics During 1995 +38% N/A
Hughes Electronics During 1996, first three quarters +17% N/A
Hughes Electronics During 1995 +38% N/A
Lockheed Martin During 1996, first three quarters +14% N/A
Lockheed Martin During 1995 +82% N/A
Northrop Grumman During 1996, first three quarters +20% N/A
Northrop Grumman During 1995 +54% N/A
Raytheon During 1996, first three quarters +15% N/A
Raytheon During 1995 +49% N/A
United Technologies During 1996, first three quarters +27% N/A
United Technologies During 1995 +49% N/A


Sources: Bloomberg Business News, The Washington Post

 


Founded in 1981, the Project On Government Oversight (POGO) is a nonpartisan independent watchdog that champions good government reforms. POGO's investigations into corruption, misconduct, and conflicts of interest achieve a more effective, accountable, open, and ethical federal government.

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