Executives from top U.S. defense firms were caught on tape reassuring investors that they expect to financially profit from escalating conflicts in Syria, reported the Intercept.
Last week, at a Credit Suisse conference in West Palm Beach, Fla., Lockheed Martin Executive Vice President Bruce Tanner was asked how the escalation in the war on terror could leverage Lockheed's portfolio. He replied that the war resulted in Congress passing a more favorable budget deal, including $607 billion in defense spending, according to Defense News.
"Our programs are well supported [in the budget]. We think we did fare very well," he said in a recording obtained by the Intercept. "It's great to have that deal done," because it benefits Lockheed and "our ability to put things under contract with our supply chain. It does a lot of goodness in terms of creating stabilization in the business that we like."
Tanner then mentioned more "indirect benefits" his company and its shareholders would see from the escalation of the war in Syria, citing Turkey's recent shooting down of a Russian aircraft, which prompted Russia to place surface-to-air missiles in Syria.
"That makes Syria an incredibly dangerous place to fly," said Tanner, adding that the U.S. will now be using a lot more of Lockheed Martin-made F-22s and F-35 jets.
"What does that mean for Lockheed Martin? We're now supporting the F-22s with a lot more sustainment activity than we had expected," he said. "So there is sort of an intangible lift because of the dynamics of that environment and our products in theatre."
Tanner went on to say that Saudi Arabia and the United Arab Emirates have asked for more "expendable" products like rockets, due to their involvement in Yemen's civil war, noted RT.
Oshkosh President Wilson Jones also gave a speech at the conference, saying the growing threat posed by the Islamic State group means "there are more countries interested in buying Oshkosh-made M-ATV armored vehicles," especially since countries have indicated they "want to mechanize their infantry corps."
Raytheon CEO Tom Kennedy made similar comments, telling attendees he has seen a "significant uptick" for "defense solutions across the board in multiple countries in the Middle East."
Referring to a recent meeting with King Salman of Saudi Arabia, Kennedy noted "it's all the turmoil they have going on, whether the turmoil's occurring in Yemen, whether it's with the Houthis, whether it's occurring in Syria or Iraq, with ISIS."
