Cash bonanza poses challenge for US aerospace and defence

摘要

In the problems one would like to have department, "too much money" must be near the top of the list. But companies finding themselves in that position are faced with a genuine dilemma; shareholders naturally start to expect that cash which cannot be sensibly invested in the business be returned to them. That is exactly what happened to US aerospace and defence companies following the 2011 Budget Control Act, designed to keep federal debt in check by capping spending. One effect was to exacerbate political gridlock in Washington DC and hence discourage investmen: by military equipment manufacturers who, looking ahead, saw no prospect of rising defence budgets.