The Super-Committee Is Failing, And That's A Major Problem For These 15 Companies


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The bi-partisan 12 member super committee has signaled that it will fail to agree on a deal to cut $1.2 trillion from the federal deficit. Automatic cuts are now expected to kick off starting 2013.What’s worrisome is that these automatic spending cuts are centered on two key areas: defence spending and healthcare.

We drew on a Bank of America report and pulled together 15 S&P 500 companies with the most exposure to the U.S. government.

As it turns out, defence companies and healthcare companies are represented heavily on this list.

So it’s no surprise that Boeing, for example. which generates 43% of sales from the government, is down by over 4% today.

Bank of America predicts that defence will take $492 billion hit and Medicare will take a $123 billion hit in the next decade.

#15 Tenet Healthcare Corp

U.S. government exposure: 47% of sales

Tenet Healthcare Corp is an investor-owned health-care delivery systems company with hospitals and outpatient centres across America.

Source: Bank of America

#14 Vulcan Materials Co.

U.S. government exposure: 50% of sales

Vulcan Materials is involved in the production, distribution and sale of construction materials. Its products include crushed stone, sand, and gravel.

Source: Bank of America

#13 FLIR Systems Inc.

U.S. government exposure: 50% of sales

Thermal imaging systems manufacturer FLIR Systems is headquartered in Wilsonville, Oregon.

Source: Bank of America

#12 Life Technologies Corp.

U.S. government exposure: 55% of sales

Life Technologies is a global biotechnology company which provides equipment and services to researchers especially in genetics.

Source: Bank of America

#11 Rockwell Collins Inc.

U.S. government exposure: 61% of sales

Aerospace company Rockwell Collins provides aviation and information technology systems and services to governments and aircraft manufacturers.

Source: Bank of America

#10 DaVita Inc.

U.S. government exposure: 66% of sales

Health care company DaVita that specialised in kidney care. DaVita is headquartered in Denver, Colorado.

Source: Bank of America

#9 General Dynamics Corp.

U.S. government exposure: 72% of sales

U.S. defence conglomerate General Dynamics Corp. is the fifth largest defence contractor in the world.

Source: Bank of America

#8 Harris Corp.

U.S. government exposure: 75% of sales

Harris Corp. is an international communications equipment company that makes wireless equipment, electronic systems and antennas for government, defence and commercial sectors.

Source: Bank of America

#7 Humana Inc.

U.S. government exposure: 77% of sales

Health insurance company Humana Inc. operates in the U.S. and Western Europe. It has over 11.5 million customers in the U.S..

Source: Bank of America

#6 DeVry Inc.

U.S. government exposure: 80% of sales

DeVry Inc. is a corporation that runs for-profit higher education institutions including DeVry University.

Source: Bank of America

#5 L-3 Communications Holdings Inc.

U.S. government exposure: 83% of sales

L-3 Communications supplies communications-related products to the Department of defence, Department of Homeland Security, U.S. Government intelligence agencies, NASA and aerospace contractors among others.

Source: Bank of America

#4 Lockheed Martin Corp.

U.S. government exposure: 84% of sales

Global aerospace, defence and global security company Lockheed Martin is headquartered in Bethesda, Maryland.

Source: Bank of America

#3 Raytheon Co.

U.S. government exposure: 88%

American defence contractor Raytheon is the world's largest producer of guided missiles. It focuses on weapons, and military and commercial electronics.

Source: Bank of America

#2 Northrop Grumman Corp.

U.S. government exposure: 92% of sales

Northrop Grumman is an American global aerospace defence technology company headquartered in Falls Church, Virginia.

Source: Bank of America

#1 SAIC Inc.

U.S. government exposure: 97%

defence contractor SAIC which provides scientific, engineering, systems integration and technical services to the U.S. Department of defence, Homeland Security and other government agencies.

Source: Bank of America

Now check out S&P 500 companies with massive exposure to Europe...

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