Industry Week in Review – April 15, 2011
Shares fell slightly for the week with the Dow dropping 0.3% and the S&P 500 and NASDAQ each falling approximately 0.6%. Aerospace/defense and government services companies underperformed this week in the wake of news that the Obama administration would be seeking an additional $400 billion of cuts to the defense budget over the next 12 years.
General Dynamics Corporation (Down 3.5%): Shares fell for the week following the broader market trend; The Company also announced that it was awarded a $17.9 million contract to produce Type-3 advanced mission computers for the F/A-18E/F and E/A-18G Super Hornet aircraft, as well as a five-year IDIQ contract with a $565 million ceiling value for all awardees by the Missile Defense Agency Engineering and Support Services program to provide infrastructure and deployment services in support of the Ballistic Missile Defense System
Ducommun Inc. (Down 8.4%): Shares fell for the week following the announcement last week that the Company will acquire LaBarge, Inc. for approximately $340 million; The Company also announced on Friday that it will release its 1Q11 earnings after the market closes on May 2nd
iRobot Corporation (Up 10.6%): Shares rose for the week as the Company announced on Tuesday that it was awarded a $230 million contract to deliver portable robotic systems used by U.S. troops to find and dispose of explosives and carry out reconnaissance missions; On Friday, it was reported that Tod Loofbourrow left his post heading up a healthcare robotics development effort at the Company and that the program is to be folded into the company’s consumer division
None this week.