Defense News: Cheap Oil Doesn't Dampen Industry's 2016 Outlook
WASHINGTON — Despite plummeting oil prices, international demand for defense products remains strong, including in the oil-rich Middle East, multiple defense executives said during fourth quarter earnings calls last week.
On call after call, analysts pressed management at top defense firms about the impact of low oil prices on their outlook for 2016. The general consensus was that international markets will continue to present an opportunity for organic growth.
Marillyn Hewson, Lockheed Martin’s president, chairman and CEO, said over the next five years, she expects half of F-35 sales to come from the international market.
"We are not seeing a lot of pullback on expenditures on national security” because of oil prices, she said. Lower oil revenues can put pressure on nation’s budgets, “but they are still going to buy the products and capabilities and technologies they need to enable them to protect their citizens and to deal with their security issues.”
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WNU Editor: These defense executives feel very confident that the "boom times" will continue.