(Updates United Technologies item)
Oct 7 As the U.S. government moves into the
second week of a shutdown, Congress appears no closer to finding
a way to end it, raising concerns about the economic
consequences of a prolonged stalemate.
The standoff, prompted by Republicans' determination to halt
President Barack Obama's healthcare reforms, could affect U.S.
companies that rely on federal employees and funding, but a few
have scaled back the number of its workers facing furloughs
after Defense Secretary Chuck Hagel recalled most civilian
Following is a list of companies and financial institutions
that have warned of project delays, employee furloughs and other
consequences of a prolonged budget impasse:
** LOCKHEED MARTIN CORP
The weapons maker said it would furlough about 2,400 of its
workers, fewer than the 3,000 it expected on Friday, because the
government facilities where they work are closed due to the
shutdown or the company had received a stop-work order on their
program. The number of employees was expected to increase every
week if the shutdown continued, the company said on Friday.
** UNITED TECHNOLOGIES CORP
The diversified manufacturer canceled plans to temporarily
lay off workers in its aerospace businesses as government
quality inspectors return in the wake of the Pentagon's decision
to recall most its own furloughed civilian workers.
The company, which makes Sikorsky helicopters and other
items for the military, had said last week that it could
furlough as many as 4,000 workers in its aerospace businesses if
the shutdown continued through this week and possibly nearly
5,000 if the shutdown continued into November.
** BOEING CO
The aerospace and defense company said there could be delays
in its jetliner deliveries, including its new 787 Dreamliner,
because thousands of U.S. aviation officials needed to certify
the planes have been idled. The delays would also affect
numerous programs and products in the company's defense
** WAL-MART STORES INC
The retailer's Sam's Club chain saw a slight slowdown last
weekend at its warehouse club stores near government facilities
but anticipates it could see a lift in food sales if military
commissaries remain closed, the unit's CEO, Rosalind Brewer,
told Reuters. The chain is offering military families and
retirees free access to its stores while the military
commissaries remain closed, Brewer said.
** USEC INC
The uranium fuel supplier, which is awaiting funds from the
U.S. government for an enrichment project, said it may have to
furlough some workers or slow down work at the project if the
shutdown extends past Oct. 15.
** GOLDMAN SACHS
** BANK OF AMERICA
** JPMORGAN CHASE & CO
** MORGAN STANLEY
** WELLS FARGO
Chief executives from major financial institutions have
warned of "adverse" consequences if government agencies remain
closed and lawmakers fail to raise the debt ceiling by
mid-October. In a meeting with Obama on Wednesday, Goldman Sachs
Chief Executive Lloyd Blankfein implicitly criticized
Republicans for using their opposition to the healthcare law as
a weapon that could lead to a U.S. default.
(Compiled by Garima Goel in Bangalore)