Top of the Pops-Pentagon Style

The United States' Top 100 has just been announced, although without a single note being heard. However, it was music to the ears of Lockheed Martin shareholders, who have learned that their company is again the leading supplier to the Pentagon.

A compilation of the prime contracts issued in the 12 months through September 30 (Fiscal Year 2001), and made public earlier this month, credits $14.7 billion to Lockheed Martin, while Boeing came second with $13.3 billion. However, the year-on-year figures tell the story from a different angle, for Boeing has closed the gap evident in the FY2000 outcome of $15.1 billion and $12.0 billion, respectively.

One of the biggest chart movers was Newport News Shipbuilding-up 13 places, from last year's 16th to the new number three. Contracts value for this company, which was acquired in November by Northrop Grumman, was $5.9 billion. Down one place, to number four this year, Raytheon netted $5.6 billion.

The one to watch for next year will be Northrop Grumman, with $5.2 billion in its own right in FY2001 and now set to surge ahead with added revenue from its latest acquisition, if all goes the way Northrop hopes, TRW.

In fact, all U.S. defense contractors are looking forward to more profitable times in the wake of President Bush's recent announcement of a $379 billion request for military spending in FY2003.

By Paul Jackson