Pentagon: "Lot Of Money" Can Still Be Made In The Arms Business

Pentagon Says "Lot Of Money" Still To Be Made In Arms Business -- Reuters

(Reuters) - The Pentagon's chief weapons buyer on Wednesday reassured industry executives and investors that there was still "a lot of money" to be made in the defense business, despite mounting budget pressures that will limit spending on new arms programs.

Frank Kendall, defense undersecretary for acquisition, technology and logistics, said the budget outlook had clearly changed after a decade of continuous increases in U.S. military spending.

But he said the Pentagon's annual budget remained quite large -- and even a worst case scenario that would cut defense spending by an additional $50 billion or around 10 percent in fiscal year 2013 -- was "not the end of the world."

"We're going to work our way through this," Kendall told an investor conference hosted by Credit Suisse. "There's a lot of money still to be made."

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My Comment: I admit that the Reuters headline caught my attention .... but it is true .... even with huge cuts forecast to hit the defense budget .... if you have the right product and price point and the Pentagon needs it .... you will have sales and you will make money.