Lockheed Martin Expects Big Profits as The World Grows More Unstable
Lockheed Martin’s leadership believes that geopolitical instability is spurring demand and an increase in its yearly profits is likely on the table. Ever since Russia launched its “special military operation” on February 24, 2022, the United States and its satrapies in the North Atlantic Treaty Organization (NATO) responded with a proxy conflict of their own. This has involved them sending copious amounts of military aid to Ukraine, while also increasing defense spending among member states.
This has been a boon for defense contractors such as Lockheed, who on July 18, 2020, raised its annual profit and sales outlook as a result of this strong demand for military equipment. Following this announcement, Lockheed’s stock price surged by 1%. Per a Reuters report, “[Lockheed] expects full-year net sales to be between $66.25 billion and $66.75 billion, up from its earlier forecast of $65 billion to $66 billion.”
The surge in profits are largely spurred by the sales of high-profile systems such as the F-35. The arms manufacturer has additionally experienced a surge in demand for other systems such as the Javelin anti-tank missile. The US government has shipped thousands of Javelin missiles to Ukraine since Joe Biden was installed in office.
The defense industry will always win in times of geopolitical conflict. That entire sector operates on the premise that conflict is always good for business. For that reason, the defense sector will always push for perpetual conflict abroad as evidenced by the national security establishment’s new obsession of getting the US mired in great power competition with the likes of nuclear powers such as China and Russia.
It’s the best way for the merchants of death to maintain steady profits.