Washington Post: Washington-area contractors had a decent quarter. But is the worst over?
The Washington area’s largest contractors reported strong quarterly earnings last week, but there was one key question investors posed against the backdrop of good news: Does this mean the worst is over? Has federal spending bottomed out, with nowhere to go but up?
Well, that depends on your perspective.
To Northrop Grumman chief executive Wes Bush, it’s tough to say if the defense market has bottomed out when there’s the possibility of uncertainty ahead.
“It’s hard to tell at the trough, if it’s going to be V-shaped or if it’s one of these troughs that has a long flat center to it,” Bush told investors in a conference call Thursday. “If we don’t get [sequestration] fixed, it could be ugly.”
Lockheed Martin chief executive Marillyn A. Hewson struck a more optimistic tone as the company reported higher quarterly sales for the first time in two years.
“Recent budget actions are positive steps in the creation of a more predictable and strategic approach to budget allocations while addressing the fiscal challenges we faced as a nation,” she said.
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