WASHINGTON — Defense spending cuts are expected to trim aerospace industry profits by 13% this year although sales and exports are anticipated at record levels, the Aerospace Industries Assn. said today.
Don Fuqua, president of the association, said the effects of several years of reduced defense spending are beginning to show on the bottom lines of most aerospace companies.
"I do not minimize the impact on our industry of the defense spending cuts we know are coming," Fuqua said. "We are braced for heavy weather."
A 2% reduction is anticipated in aerospace employment next year from this year's level of 1.3 million employees. About 2,000 aerospace jobs have been lost this year, mostly in the military sector, including missiles and space-related projects, Fuqua said.
Industry profits are forecast to slip to $4.3 billion this year from $4.9 billion the year before.