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Kratos sees potential production delays from US budget impasse

06 November 2019
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Kratos Defense & Security could experience delays in some of its production programmes if the US Congress cannot reach a budget agreement for fiscal year 2020, (FY 2020) according to the US-based company.

Some programmes currently in low-rate production, including the US Navy's Sub-Sonic Aerial Target (SSAT) and a "very profitable" classified unmanned systems effort, will not be able to move into full-rate production if lawmakers continue to keep the government funded with short-term measures, called continuing resolutions, instead of passing full-year legislation, said Eric DeMarco, Kratos' president and CEO.

While DeMarco told analysts on 5 November that Kratos expects to receive its first "substantial" order for the US Air Force's high-subsonic XQ-58A Valkyrie unmanned aircraft about 90 days after an FY 2020 budget agreement becomes law, no such deal is in sight, even though the fiscal year began more than a month ago.

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