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Speaker 2: Holes their shares surge as much as one hundred and
Speaker 2: five percent in early trading. Now there's shares, well, they're
Speaker 2: about thirty six percent. It's just a record move. A
Speaker 2: lot of mentions by retail traders on social media. Let's
Speaker 2: bring in someone who knows a little bit more about this.
Speaker 2: Let's bring in Mary Ross Gilbert. She's Bloomberg Intelligence senior
Speaker 2: equity analyst covering all things retail. So Mary, can you
Speaker 2: tell us is this a meme stock?
Speaker 3: Well, it's acting like a memestock, that's for sure, Lisa.
Speaker 3: And as you pointed out, it was on social media,
Speaker 3: it looked like midday yesterday there was a post saying
Speaker 3: showing a Bloomberg chart and showing the short interest and
Speaker 3: if you look at the number of shares or the
Speaker 3: shares borrowed versus the total float, it was about forty
Speaker 3: nine percent, which is pretty high. And it's near a
Speaker 3: historic high at least over the last couple of years,
Speaker 3: and so the post sort of circled that and then
Speaker 3: it identified and noted, hey, how can you be short
Speaker 3: this stock and sleep well at night? And then apparently
Speaker 3: that kind of triggered other posts throughout I guess into
Speaker 3: the evening yesterday, and so of course in pre market,
Speaker 3: you know, we saw the share surge, as you pointed out,
Speaker 3: over two hundred over one hundred percent, and you know
Speaker 3: yesterday the stock was up about eight percent. We saw
Speaker 3: retail stocks on the move yesterday as well, and so
Speaker 3: it could be you know, as one of your earlier
Speaker 3: commendators commendators discussed, you know, with such a strong market overall,
Speaker 3: this is a sector that has been beaten down largely
Speaker 3: with tariffs and then of course with execution issues. When
Speaker 3: we're talking about.
Speaker 4: Coals, Mary, has a company said anything either at last
Speaker 4: evening or today in response to the stock movement?
Speaker 3: Absolutely not, there is There are no releases from the company.
Speaker 4: So I mean, is this something? I mean, what are
Speaker 4: you hearing from you know, the clients that you talked to,
Speaker 4: institutional investors that you talked to, how are they are
Speaker 4: they selling into this? What are they doing.
Speaker 3: Yeah, I'm not hearing anyone discussing exactly what their activity is,
Speaker 3: but you can imagine that there's probably a fair amount
Speaker 3: of hedge funds involved. And so when you think about it,
Speaker 3: the company is highly levered. They have bonds, and hedge
Speaker 3: funds typically will take a position, let's say, in certain bonds,
Speaker 3: and then they'll go short the stock. So I think
Speaker 3: we do have some some of that activity and that's
Speaker 3: how they're positioned. And of course, you know there could
Speaker 3: have been a short squeeze that was triggered with this activity.
Speaker 3: This is usually what we'll see in a situation like this,
Speaker 3: So I think that's kind of what we're seeing in
Speaker 3: the activity and the shares.
Speaker 2: And Mary before all of this news came out, How
Speaker 2: was the stock doing before?
Speaker 4: How is Cole's performing before all this?
Speaker 3: Oh it's been atrocious. I mean, this spot is so
Speaker 3: you can look at three years, two years, five years,
Speaker 3: year to date, and the stock has been off significantly
Speaker 3: and that's due to falling revenues. I mean, if you
Speaker 3: look at the revenues over the last few years, it's
Speaker 3: down over two billion dollars. And really, when you look
Speaker 3: at the core business it's down even more. And that's
Speaker 3: even with adding you know, one point eight billion in
Speaker 3: revenues from so fora So it shows that there is
Speaker 3: trouble in the core business. And of course they've rotated
Speaker 3: through several CEOs and they're on an interim CEO as
Speaker 3: they hunt for a permanent their fifth CEO and just
Speaker 3: over two years.
Speaker 4: Oh boy, geez all right, Mary, that's that explains it all.
Speaker 4: Mary Roskilbert, thank you so much for joining us. Mary Roskilbert.
Speaker 4: There's the retailers for Bloomberg Intelligence. She's based out there
Speaker 4: in our Los Angeles euro.
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Speaker 2: General Motors. That's where we went to get to it
Speaker 2: took a big hit from President Trump's tariffs. Are you
Speaker 2: ready for this, Paul Okay? One point one billion dollar
Speaker 2: profit hit. So what kind of impact is that going
Speaker 2: to have for the company. Well, we want to hear
Speaker 2: from the expert about all this, So let's find out,
Speaker 2: and let's go to David Wells. He's Bloomberg Detroit bureau chief.
Speaker 2: He's joining us live from Detroit. So, David, were you
Speaker 2: surprised with that figure one point one billion dollars? I mean,
Speaker 2: we heard from Stalantis too, kind of saying something similar yesterday.
Speaker 5: No, not surprised at all. GM said they were going
Speaker 5: to take a four to five billion dollar hit, or
Speaker 5: that they had forty five billion dollars in exposure this
Speaker 5: year to tariffs and then they would only be able
Speaker 5: to offset about thirty percent of it, and the measures
Speaker 5: they're using talk set that you really won't see to
Speaker 5: the second half. I thought there would be a pretty
Speaker 5: big hit to it. I don't think the street was
Speaker 5: surprised either, because the forecast for GM's earnings were for
Speaker 5: a pretty big drop off of the second quarter of
Speaker 5: last year. Already, GM did better than that because they
Speaker 5: did have some things, better profits in China than we
Speaker 5: saw a year ago and better sales in the US
Speaker 5: that helped them. But overall, a pretty tough quarter, and
Speaker 5: it really shows that the car companies are going to
Speaker 5: have a tough time getting anything close to pre tariff
Speaker 5: profits going forward, because there's just no easy way to
Speaker 5: get around them.
Speaker 4: So I mean, is what we're to take away from
Speaker 4: the Stalantis numbers yesterday and the GM numbers today is
Speaker 4: that the autumn manufacturers, for whatever reason, maybe they're just
Speaker 4: not able to or they chose not to pass along
Speaker 4: the bulk of their cost increases to consumers. Is at
Speaker 4: a policy or is that just an economic reality?
Speaker 5: It's an economic reality. And look Stoantis has a lot
Speaker 5: of other issues. You know, they're going to do some
Speaker 5: pretty heavy restructuring, which they talked about yesterday. But look,
Speaker 5: we're at a period right now. We're interest rates are
Speaker 5: at pretty high levels. You have historically not record but
Speaker 5: pretty close to record new vehicle prices in the US
Speaker 5: right now, average monthly payment well over seven hundred hours
Speaker 5: a month. We have a record number of people I
Speaker 5: think paying more than one thousand dollars a month for
Speaker 5: their monthly payment. Cars are expensive, so you know, you
Speaker 5: can go out there and say, hey, I'm going to
Speaker 5: pass this tariff cost on to consumers or even some
Speaker 5: of it, but if consumers don't pay it, then you
Speaker 5: just lose the sales. And you haven't seen huge price increases,
Speaker 5: You've seen small and you've seen companies sneak in, you know,
Speaker 5: some bigger fees for transporting the vehicle for example, things
Speaker 5: like that. But it's just not they just don't really
Speaker 5: have the ability to push in big price increases to
Speaker 5: you know, to pass on. In GM's case, a billion
Speaker 5: dollars worth of tariffs in a quarter.
Speaker 2: And it's not just terrors. What else affected profits for GM?
Speaker 2: I mean, how's their inventory for electric vehicles?
Speaker 5: They built that up in the quarter, and since the
Speaker 5: vehicles lose money, they have to count for that. That
Speaker 5: that them I think it was six hundred million dollars
Speaker 5: in the quarter they had three hundred million. Because they've
Speaker 5: had a big engine recalls, they've had higher warranty costs.
Speaker 5: It wasn't just because of that recall. They've had other
Speaker 5: issues and they're working on that. Some of it. Some
Speaker 5: of these quality issues you're seeing that are costing companies
Speaker 5: more in warranty and recall type costs are all the
Speaker 5: software that goes into electric vehicles. These are kind of
Speaker 5: first times out with new software, new infotainment systems, power
Speaker 5: management systems in these vehicles, and it's just tough for
Speaker 5: them to go out there and not be buggy, right,
Speaker 5: you know, think about how many times there's something on
Speaker 5: your smartphone that you know needs an update, and fixing
Speaker 5: that with the cars is often more expensive. So some
Speaker 5: of it was related to that. And actually, you know,
Speaker 5: they saw pricing go down with some of their fleet customers.
Speaker 5: There's a lot of competition out there for the for
Speaker 5: the corporate and fleet business, and they actually saw some
Speaker 5: downward price pressure there too, and that cost them a
Speaker 5: couple one hundred million dollars. So a lot of things
Speaker 5: in the quarter that pushed profits down. But tariffs are
Speaker 5: the real story.
Speaker 4: Here, David. You're out there in Detroit. You live and
Speaker 4: breathe this stuff every day. What's the feeling in Detroit
Speaker 4: as it relates to this evolution to evs? And how
Speaker 4: will the tariff and the tariff impact on profitability? Is
Speaker 4: that going to slow this down even more? Do you think?
Speaker 3: I do?
Speaker 5: I think everything that Trump administration is doing is really
Speaker 5: going to slow the ev transition. First of all, you know,
Speaker 5: the obvious one is there. It comes September, they're going
Speaker 5: to be getting rid of the seventy five hundred dollars
Speaker 5: tax break for qualifying electric vehicles. But you know, with tariffs,
Speaker 5: you've got battery components, electronic components, wiring harnesses. There's more
Speaker 5: wiring in an EV than in a conventional vehicle. All
Speaker 5: that stuff adds to the cost of vehicles that already
Speaker 5: lose money. Some of them are actually built overseas. In
Speaker 5: the case of Hyundai, they make some of theirs overseas.
Speaker 5: GM makes a couple of it's evs in Mexico. They
Speaker 5: do qualify for US MCA, but there are still some
Speaker 5: parts component tariffs that they can be hit with on
Speaker 5: some of these vehicles.
Speaker 4: And so.
Speaker 5: You add costs to vehicles that are already pretty expensive,
Speaker 5: and you can't pass it on. If you do, even
Speaker 5: fewer people will buy them. Companies may have less incentive
Speaker 5: to build and sell them if they lose even more
Speaker 5: money on these, So that's going to hurt as well.
Speaker 5: And then, of course Trump's rhetoric for people who are
Speaker 5: politically right of center and pretty far right is that
Speaker 5: you know, evs are a dumb purchase and they don't
Speaker 5: work for you, and I think that hurts sales as well.
Speaker 5: So all of this is just not good for the
Speaker 5: momentum that EV's had in the US before Trump got
Speaker 5: in office.
Speaker 2: Yeah, So, David, last month, the company said it would
Speaker 2: shift some production to the US from Mexico. So what
Speaker 2: other changes can we expect to see from the company,
Speaker 2: like in the last minute or so we have left.
Speaker 5: Yeah, I think you'll see them try to bring more parts,
Speaker 5: more of the parts they buy into the US, so
Speaker 5: they'll be encouraging their suppliers to do what they're doing.
Speaker 5: Will just move some production to the United States, and
Speaker 5: that'll take time, and you know, you may see them
Speaker 5: make some more production related news. What they've done is
Speaker 5: pretty big, So I'm not anticipating any big announcements. But
Speaker 5: you know, as they look at this and they find
Speaker 5: other ways to do it, you might see more vehicles,
Speaker 5: more parts built here in the US.
Speaker 2: Thank you so much, David Wells, Bloomberg, Detroit ber Chief
Speaker 2: talking about GM earnings and so much more.
Speaker 4: I think GM right here. If you go GM Equity,
Speaker 4: FA just brings up the financial statements. Their net income
Speaker 4: margin is five percent. Ok, that's it. They got like
Speaker 4: no margin, no profit margin. Anything goes wrong for these
Speaker 4: auto companies and they get screwed.
Speaker 2: You always say I never understand the auto company.
Speaker 4: I don't want to, just don't get it. And oh,
Speaker 4: by the way, my top line splat. I mean, you know,
Speaker 4: I just it's a high margin. You will make up
Speaker 4: a volume. I guess it's one of those business So
Speaker 4: it's just a tough, tough business. And then you throw
Speaker 4: on top of the TIFFs and then oh, by the way,
Speaker 4: I have to change my entire industry that I built
Speaker 4: up over the last hundred years to go electric. Yeah,
Speaker 4: I'm invest in that. Yeah, I don't know.
Speaker 2: We got a shift production us to Mexico. It's never
Speaker 2: ending from them.
Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
Speaker 1: weekdays at ten am Eastern on Applecarplay and Android Auto
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Speaker 2: And we're listening to Bloomberg Intelligence. I'm Lisa Matteo alongside
Speaker 2: Paul Sweeney, and we are in the thick of earning
Speaker 2: season right among those companies today, one of them, Coca Cola,
Speaker 2: beat on second quarter sales growth, profit. But it's another
Speaker 2: headline that's getting some attention. They are launching a new
Speaker 2: coke product that's made with cane sugar. So here to
Speaker 2: tell us more about it is Candida Jay is Bloomberg Intelligence,
Speaker 2: Senior consumer products Analysts, Kenneth, thanks for joining us here
Speaker 2: from Princeton. How much of an impact did the President
Speaker 2: have on this decision from Coke?
Speaker 6: Yeah, Hi, Lisa. Well, it's hard to say, but it
Speaker 6: certainly is in sync with what Coca Cola has been
Speaker 6: doing for a long time, and that is keeping its
Speaker 6: pulse on what the consumer wants to do. It has
Speaker 6: a lot of assets at its disposal, and a cane
Speaker 6: sugar product is not novel to Coca Cola. I mean,
Speaker 6: it's produced it in the US largely more more outside
Speaker 6: of the US, but in the US on a selected basis,
Speaker 6: So it's really just going to expand that. It may
Speaker 6: have been prompted to a degree by the President's tweets
Speaker 6: or whatever, but it's certainly in sync. Like I said,
Speaker 6: you know, there's a there's an audience out there that
Speaker 6: prefers sugar based as opposed to high fructose cornci based
Speaker 6: full calorie sodas, and they're going to play into that.
Speaker 6: Most likely, it's going to be a brand Coke extension,
Speaker 6: and it's going to be sell at a premium price
Speaker 6: in selected markets to give it an aura of exclusivity.
Speaker 6: I'm guessing to command those prices and so just theys
Speaker 6: a little more excitement. It's it's one of many things
Speaker 6: Coke is doing now on the innovation front.
Speaker 4: So from Coca Cola's economic perspective, do they care which
Speaker 4: ingredient they use?
Speaker 6: Well, it depends, Paul, it depends if they can capture
Speaker 6: the premium price they're going to you know, price it
Speaker 6: at Kine. Shugar costs more than high frucos corns here.
Speaker 6: You know, a corn is a heavily, heavily subsidized crop
Speaker 6: in the US. They built their supply chain around HFCs
Speaker 6: because of that, and most consumers early, you know, they
Speaker 6: don't really notice the difference. Some do, but buy and large.
Speaker 6: You know, they've grown that franchise very well. But I
Speaker 6: guess you know some tourists that go to Mexico and
Speaker 6: they taste the sugar cane sugar coke down the air
Speaker 6: and they say, you know what, this is really good,
Speaker 6: and they want to capture the same experience in the US.
Speaker 4: I'm going to Chipotle today and they do offer the
Speaker 4: Mexican zoda there.
Speaker 7: Can I give you the history of high fructose corn syrup.
Speaker 7: It was in the nineteen seventies, with high inflation and
Speaker 7: high sugar prices. President Nixon said, do something about this,
Speaker 7: and this guy said, well, we can make a sugary
Speaker 7: tasting stuff from corn from American farmers and US high
Speaker 7: fructose corn syrup, which most doctors say is like poison
Speaker 7: to your system. There we go, thank.
Speaker 4: Don taker with the value added there. Let me ask,
Speaker 4: let me shift gears here. What is a ZIN patch?
Speaker 6: A Zin patch? Do you want to patch it? I
Speaker 6: think they made a pouch pouch. Zin pouch is a pouch,
Speaker 6: you know, it's it's an oral tobacco product. Actually, Zin
Speaker 6: doesn't even contain tobacco. It's a synthetic product. Its lads
Speaker 6: with nicotine that is a facsimile for tobacco, which a
Speaker 6: lot of people will say causes harm, and a lot
Speaker 6: of people are right. So this is a product that
Speaker 6: you know, people can get their nicotine buzz in a
Speaker 6: you know, hands off kind of way, doesn't emit smoke,
Speaker 6: doesn't offend your neighbor that you're working with, and it's
Speaker 6: done really really well. So those are really the Zin
Speaker 6: pouches that are doing really well.
Speaker 4: Yeah, yeah, I thought it was Zinfindel. The line that's
Speaker 4: no kidding, No, I that pouch so but I mean
Speaker 4: it's it's big enough a business can that Philip mars
Speaker 4: would would call it out.
Speaker 6: Oh yeah, it is in it's about eight percent of
Speaker 6: the sales, I believe at this point. But it's growing,
Speaker 6: you know, a twenty thirty percent rate, as opposed cigarettes
Speaker 6: which are flat, if not down. But you know, Icoas
Speaker 6: is their smoke free device segment, which is doing very well.
Speaker 6: But if the low large numbers at some point, that's
Speaker 6: going to slow and Zen is filling the gap. They
Speaker 6: keep the overall volumes in a positive trend. They price
Speaker 6: these things very high. There's not a lot of competition
Speaker 6: in this space. So you know, one of the things
Speaker 6: investors would say about the world of tobacco, because it's
Speaker 6: so consolidated, they can pass on a very high pricing
Speaker 6: and that's what really drives a top line and you
Speaker 6: know the cash flows and so on. And Zen plays very,
Speaker 6: very very well into that model.
Speaker 2: And how does it fair as far as we're hear
Speaker 2: about e cigarettes vaping things like that, how has Philip
Speaker 2: Marris been doing competing with this category.
Speaker 6: So they have a product called viv which is their
Speaker 6: e vapor product as opposed to what they call heat
Speaker 6: not burn, which has actual tobacco in it, and they
Speaker 6: would say as a more appealing alternative for smokers who
Speaker 6: are trying to quit. It's a lower margin product. It's
Speaker 6: kind of seen by Philip Morris as a kind of
Speaker 6: an entry level product. If for those who are trying
Speaker 6: to move away from combustible cigarettes, they can turn to
Speaker 6: e cigarettes a low cost method, and their hope is that,
Speaker 6: you know, even though it's a low margin product, their
Speaker 6: hope is that they can get that consumer maybe some
Speaker 6: at some point to trade up to their heat not
Speaker 6: burn product, which is, you know, a more profitable product
Speaker 6: for them.
Speaker 4: All right, good stuff. I mean I learned about the
Speaker 4: zin pouch today. How about it's not Zinfindel. Okay, all right,
Speaker 4: very good, so good stuff there, Ken Shay, thanks so much.
Speaker 4: Ken covers all those consumer products at companies for Bloomberg Intelligence.
Speaker 4: Appreciate getting a few minutes of this time.
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Speaker 4: Lis MITTEO, Paul Sweety, We're live here on Bloomberg Interactive
Speaker 4: Broker Studio. Let's talk about Lockheed Martin. Put out some
Speaker 4: numbers disappointing here, took some losses here. Let's break it
Speaker 4: down with will Lee Aerospace and Defense channels for Bloomberg Intelligence. Well,
Speaker 4: Lockheed Martin, I mean, they just do everything. What happened
Speaker 4: in the quarter.
Speaker 8: Yeah, So, I mean if you look at the quarter
Speaker 8: of the performance was modeled by this hefty one point
Speaker 8: six billion dollars chart on program losses and then another
Speaker 8: one hundred sixty nine million of other charges. There was
Speaker 8: the end gap right off. I think that was around
Speaker 8: like sixty sixty six.
Speaker 4: Let's go back to the big one one point six billion,
Speaker 4: So what's that for?
Speaker 8: So out that one point six nine hundred and fifty
Speaker 8: million is for for a classified aeronautics.
Speaker 4: Program, so they can't tell us.
Speaker 6: They can't tell us what it is.
Speaker 8: But if it's something that big and it's been going on,
Speaker 8: and in fourth quarter they also recorded another four hundred
Speaker 8: and forty million dollars or four hundred and seventy seven stop.
Speaker 4: Doing that program, then I don't know what they could
Speaker 4: tell you, but then they have to kill you.
Speaker 8: Well, given that it's a huge program and they're taking
Speaker 8: over a billion dollars of charges, what could possibly be
Speaker 8: so important so big and most likely is the A
Speaker 8: name six generation ISR. What's IRR Intelligence surveillance reconstants, So
Speaker 8: think of as the replacement for the SR seventy SRC.
Speaker 4: Now we're talking SR seventy one to Okay, So.
Speaker 8: If you think about in that respect, Bowen has the
Speaker 8: F forty seven, that's the sixth generator, sixth generation of
Speaker 8: fighter jet. That's going to be the biggest sixth generation program.
Speaker 8: Navy wants their own sixth generation, the FAXX. I think
Speaker 8: that Northrope has the inside tractor. When that given that
Speaker 8: Dood doesn't want to make the same mistake that I
Speaker 8: made with F thirty five, given lot UH with F
Speaker 8: three five F twenty two, given Lockie both control of
Speaker 8: the fifth generation fighters, so they break up into multiple
Speaker 8: defense contractors and have more resilient industrial base. So in
Speaker 8: that with that mindset, Bowen has F forty seven UH,
Speaker 8: Northrope pass the FAXX, and Lockie could potentially have the
Speaker 8: sixth generation reconnaissance aircraft.
Speaker 2: So what all those numbers that my son would be
Speaker 2: having a field day with this conversation right now. He
Speaker 2: is so into this is this typical of defense contracting environment?
Speaker 2: I mean growth is marginal there, you were mentoring a
Speaker 2: number of numbers before.
Speaker 8: Is this typical? I mean to this large extent, this
Speaker 8: is sort of unusual. I mean they've locky teased that
Speaker 8: they were going to they were looking at additional charges
Speaker 8: after the quarter. They didn't mention or indicate how large
Speaker 8: that magnitude was. So this sort of caught the street
Speaker 8: by surprise the size of it. But I mean, I
Speaker 8: think it just shows that this is a key program
Speaker 8: that's that's going to keep going for But even if
Speaker 8: you just strip out all the charges from the quarter
Speaker 8: and you look at the underlying performance, the performance actually
Speaker 8: was not bad. In second quarter, Aeron ONLYYX grew seven
Speaker 8: percent on high F thirty five volumes and the F
Speaker 8: thirty five, and they also took up the the prop
Speaker 8: a cumulative profit booking rates on the F thirty five
Speaker 8: in the quarter, and the Missile and fire control segment
Speaker 8: it grew eleven percent on strong demand on tactical and
Speaker 8: strike missiles. So you're talking about the jazzm the JASM
Speaker 8: air to service missile, the Lorasm anti ship missiles, and
Speaker 8: the gimblers that are used on the High Mars those
Speaker 8: are those are rockets that we've been sending over to
Speaker 8: Ukraine are.
Speaker 4: So I'm looking at the comps. They're all trading up
Speaker 4: on the year. Defense contractors stocks are doing great this year,
Speaker 4: with the exception of Lockey Martin it's down eleven percent
Speaker 4: year to date. What helpout that well?
Speaker 8: I mean, the biggest headwind is the F thirty five
Speaker 8: you have F thirty five is the news you have
Speaker 8: talks of why do we need to have F thirty five?
Speaker 8: In the fiscal twenty six budget requests the Air Force.
Speaker 8: The Air Force cut the number of F thirty fives
Speaker 8: to twenty four and that's down from forty four, So
Speaker 8: across the board, I think that's the biggest headwind on
Speaker 8: Lockie and the fact that you're not seeing you're not
Speaker 8: seeing that more. You're you're seeing flat revenues and no
Speaker 8: real margin improvement. So I think those are the two
Speaker 8: big headwinds.
Speaker 2: Yeah, can you get into that a little bit more
Speaker 2: like RTX Corp North or Grumman, Like, what are they
Speaker 2: doing better? That that that lockade isn't well.
Speaker 8: I mean our stuff with north by their lever to
Speaker 8: the b TOY one program and the Sentinel. So with
Speaker 8: the b TY one, you're here in talks of the
Speaker 8: Air Force looking to accelerate production and more quantities. And
Speaker 8: that program right now is in this e M D
Speaker 8: phase Engine Engineering Manufacturing development. So think of as sort
Speaker 8: of this is still in the development low rate production phase,
Speaker 8: but then it's going to transition to a production phase,
Speaker 8: and when it goes to a production phase, you can
Speaker 8: see potentially higher quantities. At Northrop talk to that on
Speaker 8: their earnings called this morning saying that we're in discussions
Speaker 8: with the Air Force and if we increase the production rate,
Speaker 8: we might have to take additional we might have to
Speaker 8: make additional investments, which means I had went to to earnings.
Speaker 8: But at the same time they could potentially realize profit
Speaker 8: on these low rate initial production lots and not to
Speaker 8: exceed subsequent follower production, whereas before they were expecting no
Speaker 8: profits on the l RIP phase and some profit on
Speaker 8: the next NTE phase.
Speaker 4: All Right, it just seems like it's good to be
Speaker 4: in the defense business. It seems like, you know, we
Speaker 4: spend money on the defense ear in and you're at Lockey.
Speaker 4: Martin had a tough day today. It is down six percent.
Speaker 4: LMT is the ticker will Thanks so much for joining
Speaker 4: us A will Lee Aerospace Defense sanels for Bloomberg Intelligence
Speaker 4: breaking down the LMT data here.
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