Solid Earnings likely for key U.S. aerospace firms

U.S. suppliers of planes and aircraft parts are likely to post solid quarterly results on better air traffic as defense contractors are challenged by a tough budgetary environment.


Rockwell Collins will kick off the latest round of financial reporting for aerospace and defense companies on Thursday.

Next week, investors will be eyeing 2011 outlooks from key companies including plane maker Boeing Co., defense industry leader Lockheed Martin Corp and missile maker Raytheon Co.

Analysts expect U.S. aerospace companies to benefit from rising plane orders and higher demand for parts and maintenance as global airlines rebound from the economic downturn.

"We are in the early part of the (commercial) recovery so I think the outlook is going to be good," said Alex Hamilton, managing director of EarlyBirdCapital.

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