GOLDMAN: These Companies Will Get Crushed In The Fiscal-Cliff-Mageddon

cliff

Photo: omarrr12 via YouTube

The “fiscal cliff” is likely to make this year’s lame-duck Congressional session the most exciting in living memory (if you’re into that kind of thing).  To recap, after 2012, a series of “sequestrations” are going to kick in that will cut defence and discretionary spending by a combined 4 per cent, according to Mercatus.

The debate will be whether those cuts will be staved off or not.

And according to Goldman Sachs, the last time we had a major debate on government spending levels — the debt ceiling talks — companies with heavy exposure to government significantly underperformed. 

In that spirit, the bank’s research unit compiled a list of the companies deriving the most revenue from government spending.

What’s shocking is not so much the names as the amount of money they get — some of them are practically government agencies. 

We put together the 20 firms that get 50 per cent or more of their revenues from tax dollars.

Huntington Ingalls Industries Inc.

Ticker: HII

Sales exposure to government: 99%

Description: Shipbuilder

Source: Goldman Sachs Research

Lockheed Martin Corp.

Ticker: LMT

Sales exposure to government: 97%

Description: Aerospace and defence systems developer

Source: Goldman Sachs Research

Granite Construction Inc.

Ticker: GVA

Sales exposure to government: 95%

Description: Contracting and construction

Source: Goldman Sachs Research

Northrop Grumman Corp.

Ticker: NOC

Sales exposure to government: 90%

Description: Aerospace and defence systems developer

Source: Goldman Sachs Research

L-3 Communications

Ticker: LLL

Sales exposure to government: 90%

Description: Aerospace equipment developer

Source: Goldman Sachs Research

Raytheon

Ticker: RTN

Sales exposure to government: 86%

Description: Aerospace and defence systems developer

Source: Goldman Sachs Research

AeroVironment Inc.

Ticker: AVAV

Sales exposure to government: 85%

Description: Aerospace and defence systems developer

Source: Goldman Sachs Research

Harris Corp.

Ticker: HRS

Sales exposure to government: 82%

Description: Communication and IT services provider

Source: Goldman Sachs Research

Alliant Techsystems

Ticker: ATK

Sales exposure to government: 82%

Description: Aerospace and defence systems developer

Source: Goldman Sachs Research

General Dynamics

Ticker: GD

Sales exposure to government: 80%

Description: Aerospace and defence systems developer

Source: Goldman Sachs Research

FLIR Systems Inc.

Ticker: FLIR

Sales exposure to government: 78%

Description: Thermal imaging systems developer

Source: Goldman Sachs Research

Tetra Tech Inc.

Ticker: TTEK

Sales exposure to government: 69%

Description: Natural resource services and consulting

Source: Goldman Sachs Research

URS Corp.

Ticker: URS

Sales exposure to government: 68%

Description: Power generator maintenance

Source: Goldman Sachs Research

Motorola

Ticker: MSI

Sales exposure to government: 65%

Description: Communication and IT service provider

Source: Goldman Sachs Research

AECOM Technology Corp.

Ticker: ACM

Sales exposure to government: 62%

Description: Infrastructure maintenance

Source: Goldman Sachs Research

Clean Harbors

Ticker: CLH

Sales exposure to government: 50%

Description: Hazmat services

Source: Goldman Sachs Research

Bombardier

Ticker: BBD

Sales exposure to government: 53%

Description: Aerospace equipment developer

Source: Goldman Sachs Research

Republic Services

Ticker: RSG

Sales exposure to government: 50%

Description: Waste management services

Source: Goldman Sachs Research

Waste Connections

Ticker: WCN

Sales exposure to government: 50%

Description: Waste management services

Source: Goldman Sachs Research

Waste Management

Ticker: WM

Sales exposure to government: 50%

Description: Waste management services

Source: Goldman Sachs Research

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