Business

US companies affected by government shutdown

The US government shutdown, now into its fourth day, is beginning to hit the factory floor as concerns grow about the economic consequences of a prolonged stalemate in Congress.

The standoff, prompted by Republicans' determination to halt President Barack Obama's healthcare reforms, could affect US companies that rely on federal employees and funding.

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 about 3,000 employees would be furloughed on Monday due to the US shutdown. The number of employees was expected to increase every week if the shutdown continued, the company said.

Boeing Co

The aerospace and defence company said there could be delays in its jetliner deliveries, including its new 787 Dreamliner, because thousands of US aviation officials needed to certify the planes have been idled. The delays would also affect numerous programs and products in the company's defence business.

United Technologies Corp

The company, which makes Sikorsky helicopters and other items for the military, said it would be forced to furlough as many as 4,000 employees if the US government shutdown continues through next week, due to the absence of government quality inspectors. More than 5,000 employees may be on furlough if the shutdown continues into next month.

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 letting military families shop without paying a membership fee at 50 outlets located near military bases, Brewer said.

Usec Inc

The uranium fuel supplier, which is awaiting funds from the US 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 October 15.

Goldman Sachs

Bank of America

Citigroup

JPMorgan Chase & Co

AIG

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 criticised Republicans for using their opposition to the healthcare law as a weapon that could lead to a US default. - Reuters, October 5, 2013.

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