The world’s arms giants in the US and Germany are generating record profits because of the war in Ukraine.
The weapon and ammunition orders for Ukraine and the replenishment of Western allies’ stocks has provided the American defense industry with better-than-expected financial results, writes Reuters.
Lockheed Martin, General Dynamics, RTX, and others expect improved results in the coming quarters. General Dynamics’ production of artillery shells has increased from 14,000 to 20,000 units per month, but the plan is 85,000-100,000. General Dynamics’ branch, producing armored vehicles and artillery, notes a 25% profit increase. RTX, which makes AMRAAM missiles, has received $3B in orders since February 24 and expects more.
Sweden’s Saab also improved its sales forecast, while German arms group Rheinmetall reported a sharp increase in profit amid the rise in demand for weapons and ammunition. The company did not specify which orders helped it to exceed its projected profit by 15%, but the Russian invasion in Ukraine led to a spike in demand for the products of the defense industry.