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September 27, 2021

Byron Callan quoted in Bloomberg

"Lockheed Reduces Planned F-35s for 2022, Citing Covid’s Impact" by Anthony Capaccio


Byron Callan quoted in Anthony Capaccio's Bloomberg article, "Lockheed Reduces Planned F-35s for 2022, Citing Covid’s Impact"

The article reads:

Lockheed Martin Corp. said it will deliver fewer F-35 fighters next year than previously planned under a schedule revised for the impact of Covid-19 on its workforce and production. 

The initial contractual goal was for 158 to 163 of the advanced fighters to be delivered in 2022, according to the Pentagon’s F-35 program office. Now, Lockheed said in a news release Monday, it projects 151 to 153 jets for next year, followed by 156 in 2023 and annually “for the foreseeable future.”

...

The delivery levels projected for 2023 and after “may reflect decisions about the DoD F-35 buys in the FY23-27 budget request and plan that is being finalized” plus the “absence of significant congressional add-ons to F-35 unit buys in the fiscal 2022 request and beyond,” Byron Callan, a defense analyst with Capital Alpha Partners LLC,  said in a note to clients on Monday.

Full article: https://www.bloomberg.com/news/articles/2021-09-27/lockheed-reduces-planned-f-35s-for-2022-citing-covid-s-impact

August 2, 2021

Byron Callan quoted in Bloomberg

"Pentagon Contractors Still Get Accelerated Funds Tied to Covid" by Anthony Capaccio
 


Byron Callan quoted in Anthony Capaccio's Bloomberg article, "Pentagon Contractors Still Get Accelerated Funds Tied to Covid"

The article reads:

Asked what economic conditions justified continuing the accelerated payments, Maxwell said, “We will continue to monitor the situation and the operational and economic need for its use. At this juncture, the department cannot project when or how the increased progress payment rates will be rescinded. We will keep all parties informed via our website and industry associations.”

Even as the payments have contributed to stronger financial conditions of major defense companies, they continued in the second quarter to execute share buybacks, although generally at a slower pace than in the first quarter, according to Byron Callan, a managing director for defense and aerospace for Capital Alpha Partners.

General Dynamics Corp. executed $593 million in second-quarter buybacks compared with $759 million in the first quarter, he said. Lockheed Martin bought back $500 million, down from $1 billion in the first quarter. Northrop Grumman bought back $143 million, down from $2 billion. Raytheon increased second-quarter share buybacks to $632 million from $375 million in the first quarter, he said.

Maxwell previously said Pentagon officials have no indication that accelerated payments were being diverted to buybacks.

Full article: https://www.bloomberg.com/news/articles/2021-08-02/pentagon-contractors-still-get-accelerated-funds-tied-to-covid?utm_source=twitter&cmpid=socialflow-twitter-business&utm_medium=social&utm_campaign=socialflow-organic&utm_content=business

January 24, 2018

Byron Callan quoted in Bloomberg

"Lockheed Wants Pentagon to Help Pay Its Costs to Absorb Sikorsky" by Anthony Capaccio.


Byron Callan was quoted in Anthony Capaccio's Bloomberg article, "Lockheed Wants Pentagon to Help Pay Its Costs to Absorb Sikorsky," published on January 24th, 2018.

The article reads:

“It’s not a deal per se, but it is the first merger-related issue the new administration has to address,” said Byron Callan, a defense business analyst for Capital Alpha Partners LLC.

Source: https://www.bloomberg.com/news/articles/2018-01-24/lockheed-wants-pentagon-to-help-pay-its-costs-to-absorb-sikorsky

August 29, 2017

Byron Callan quoted in Bloomberg

"U.S. Defense Boost May Unravel Into a Deep Cut" by Anthony Capaccio and Roxana Tiron


Defense analyst Byron Callan was quoted in the Bloomberg article, "U.S. Defense Boost May Unravel Into a Deep Cut," written by Anthony Capaccio and Roxana Tiron.

The article reads:

National security spending also includes programs such as the Energy Department’s maintenance of the nation’s nuclear warheads, environmental cleanup, and some activities of the FBI and Transportation Department.

Still, because the automatic cuts wouldn’t take effect until mid-January, there would be time for an agreement even after the fiscal year starts on Oct. 1, said Byron Callan, a defense analyst for Capital Alpha Partners LLC. 

Source: https://www.bloomberg.com/news/articles/2017-08-29/defense-budget-cuts-across-the-board-loom-as-soon-as-january

December 22, 2016

Byron Callan quoted in Bloomberg

"Trump Says He Asked Boeing to Price a Competitor to Lockheed's F-35" by Anthony Capaccio and Alex Wayne


Defense analyst Byron Callan was quoted in Anthony Capaccio and Alex Wayne's Bloomberg article, "Trump Says He Asked Boeing to Price a Competitor to Lockheed's F-35".

Capaccio and Wayne write:

Moreover, "Boeing offered a stealthier version of the F/A-18 in 2013 that did not gain traction with the Navy or other customers," Byron Callan, a defense analyst with Capital Alpha Partners, LLC said in a note to clients. "The F/A-18 could not be used on Navy amphibious ships whereas the F-35B can." Since the Air Force does not operate F/A-18s "there would be costs to integrate that type into its inventory," he wrote. 

Source: https://www.bloomberg.com/politics/articles/2016-12-22/trump-says-he-asked-boeing-to-price-competitor-to-lockheed-f-35-ix0yyb41