General Dynamics Plans to Cut Back Weapons Research
NEW YORK — The head of General Dynamics Corp., the nation’s No. 2 defense contractor, says he would like to get out of the defense business and will be cutting back on weapons research, Wall Street analysts said Monday.
“I personally would like to be out of defense,” General Dynamics Chairman William Anders told security analysts in a New York meeting last week, according to Paul Nisbet, an analyst with Prudential Securities Inc.
The St. Louis-based defense giant, whose motto is “A Strong Company for a Strong Country,” had 1990 sales of $10.2 billion, 85% on defense products.
General Dynamics builds the F-16 Air Force fighter, Navy nuclear submarines and the Army’s M-1 tank.
Other analysts who were at the three-hour dinner and meeting with Anders on Wednesday night confirmed the general thrust of the chairman’s remarks, if not the specific quote cited by Nisbet.
Jerry Cantwell of Wertheim Schroeder said, “I didn’t recall that exact quote.” But he said the clear implication of Anders’ remarks was that the company would have difficulty doing business with the Pentagon under current rules requiring high investment in a high-risk climate.
No direct comment could be obtained from Anders. His office said he was unreachable aboard a submarine until Thursday.
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