BBC News | September 11: One year on

The defence sector is one of the few industries that has clearly benefited from the events of 11 September. The huge boost in the US military budget will mainly be spent on additional purchases of equipment, especially aircraft. The main beneficiaries are likely to be aerospace firms like Lockheed Martin and Northrop Grumman, which recently gained size through mergers. European defence companies are sharing in the bonanza, but are constrained by the limited budgets of European governments, whose defence spending has not increased.

BBC News Online business reporter Stefan Armbruster explains the benefits to the defence industry of the huge boost in arms spending.

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Key Facts

Increase to US defence budget: $48bn

Profits of main US defence contractors up sharply

Electronic warfare is the main focus of procurement