Contractors May Benefit From 2012 Defense Budget

Defense contractors may profit from the fiscal 2012 defense budget recently approved by Congress. Josephine Millward, a Benchmark Co. analyst, examined the $633 billion defense budget and observed that while war funding is down 27 percent as U.S. troops withdraw from Iraq, the base budget is up $5 billion, or 1 percent. “Passage of the fiscal year 2012 budget helps improve visibility for defense companies in the coming year, as most companies were concerned about impact on order flows with an extended or full-year continuing resolution,” Millward wrote in a note to investors.