Military spending bolsters U.S. defense contractors

Northrop Grumman, the world's largest builder of warships, and Raytheon, the world's biggest missile manufacturer reported strong second-quarter sales gains on record U.S. military spending, but their profits were mixed. Northrop's sales climbed 12 percent to $7.37 billion, or E5.8 billion, as profit rose 44 percent. Raytheon's sales increased 11 percent to $4.93 billion, as legal costs resulted in a quarterly net loss. Demand for defense equipment also helped increase quarterly sales and profit for aircraft landing-gear maker Goodrich. [more]