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Defense contractors adjust to spending cuts, maintain profits

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Two top U.S. defense contractors posted profit that beat Wall Street’s expectations on Wednesday despite lower-than-expected revenue, underlining their efforts to adapt to declining federal spending.

General Dynamics Corp (GD.N) and Northrop Grumman Corp’s (NOC.N) success in protecting their profits even as revenue deteriorates reflects their drive to scale back less-profitable businesses at a time of declining U.S. defense spending.

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