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The precision instruments industry's outlook for growth in 1999 appears relatively good, due to a sound U.S. economy and improving economic conditions in Latin American and Europe. During the coming years, moderate growth is expected as it is not believed that there will be a significant increase in the demand for precision instrument products. Despite generally strong expected share-net comparisons, stocks in the instruments industry are well suited only for aggressive investors.

Shipments for the precision instruments industry fell about 8.3% for the 3rd qtr of 1998 compared to the same period for 1997, but industry observers are forecasting mild growth through the years 2001-2003. The industry is comprised by many diverse companies that serves many customers in the world of business and industry, as well as individual cusumers. Modest growth prospects for the industry indicate that investors should seek opportinities in other areas.

Stocks in the precision instrument industry should perform well in 1995, helped especially by improving economies in Japan and Europe. Operational improvements made at many companies are causing earnings growth to outpace sales growth in many cases. Industrial business growth should make up for the loss of defense-related business. Stocks in this group are ranked in the top third for timeliness.

Precision instrument industry stocks are excellently positioned to perform well both in 1994-1995 and out to 1997-1999. The market for instruments turned around in 1992 as the US emerged from recession and profits are now rising faster than sales, making some company industry stocks high above average in timeliness. Businesses with European and Japanese holdings should especially benefit from the economic turnaround in those countries.

Sales of precision instruments will continue to grow through 1995, on the strength of the US economy and improved demand in Japan and Europe. Profits will increase even more than sales because of the industry's high fixed costs and cost-cutting measures undertaken during 1990-1991. Precision instrument stocks are a good, timely investment bet.

Precision instrument industry stocks are timely and show strong growth prospects out to 1997-1999. The industry has recovered from its slump in 1990-1992. Operating cost reductions during the slump are reflected in increased earnings, and sales and expansions are expected to sustain the earnings growth in the long term. These stocks have risen at an above average pace since 1992.

Precision instrument industry stocks should be expected to return above-average results over the next few years, with several companies poised to perform well in 1994. The rise in consumer spending, reflected largely in the increasing level of consumer confidence, has brightened prospects of higher profits. Industrial spending should also increase, as companies comply with strict environmental and quality standards.

This article provides a financial overview of U.S. mid sized military industries. The top 6 companies mentioned are: SAIC, L-3 Communications Corp., Alliant Techsystems, EG&G Inc., Booz-Allen Hamilton, DRS Technologies Inc., and Anteon Corp.