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Prognosis '96 Defense


Industry Outlook -- Basic Industries: DEFENSE

PROGNOSIS '96--DEFENSE

Positives

-- Consolidation moves forward: Look for at least one more mega-merger and continued capacity reduction.

-- Modest growth in the Pentagon's procurement budget is likely, while overseas sales could strengthen.

Negatives

-- Profit margins will be squeezed as stingier contracts kick in. The lucrative B-2 bomber and F-22 fighter programs may be stretched or killed.Return to top

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