WASHINGTON, July 25 (Reuters) - General Dynamics Corp sees few opportunities for mergers and acquisitions at the moment and is taking a cautious approach to capital deployment, given uncertainties about the global economic climate and U.S. defense spending.
“The operative word into next year is caution,” Chief Executive Jay Johnson said in an analyst call on Wednesday.
Johnson cited continued concerns about an additional $500 billion in across-the-board U.S. defense spending cuts due to take effect in January, on top of $487 billion in cuts already planned for the next decade.
Johnson said investment decisions would remain limited until it was clear whether Congress would find other spending reductions to avert the additional cuts to the military, which Defense Secretary Leon Panetta has said would have “devastating” consequences for the defense industry and national security.
Reporting By Andrea Shalal-Esa; Editing by Gerald E. McCormick