Ahead Of The Bell: Defense Contractors

HARTFORD, Conn. (AP) — A large increase in Pentagon orders for off-road military vehicles would not only be a boon for several defense contractors, but could lead to new and more-lucrative orders, an analyst said Friday.

Analyst James McIlree of Collins Stewart said an advisory council to the Joint Chiefs of Staff has approved an increase in military all-terrain vehicles from 2,080 to 5,244.

The potential could become much larger if the all-terrain vehicle eventually is transformed into the newer joint light tactical vehicle program, he said. It would yield revenue for the company that wins the contract to more than $2 billion to $2.5 billion for 3,700 vehicles designed to protect troops from bomb blasts, he said. ...