Business

July 24, 2013

Lockheed Martin second quarter withstands budget cuts

Lockheed Martin raised its profit guidance for the year after posting a higher-then-expected second-quarter profit because of strong sales of missile defense systems, and because it settled a dispute over a canceled project to build the new presidential helicopter.

Just three months ago, the maker of fighter jets, missiles and other defense goods had warned that results for this year could be hurt by automatic federal budget cuts. And, indeed, those cuts pushed second-quarter revenue down 4.3 percent, to $11.41 billion, from $11.92 billion a year earlier.

But some key programs at Lockheed benefited even while the rest of the industry is enduring the defense slowdown:

  • The U.S. is planning to end funding for the Medium Extended Air Defense System, which could eventually hurt Lockheed Martin. But in the meantime, the shift away from MEADS is boosting sales of the Patriot missile defense system. Lockheed makes the Patriot Advanced Capability-3 missiles. Operating profits jumped in Lockheed’s Missiles and Fire Control unit, to $381 million, from $313 million a year ago.
  • Lockheed got a $75 million profit boost after settling “contract cost matters” including the canceled program to build a new helicopter for the U.S. president. The program was canceled in 2009 after delays and budget overruns.
  • Deliveries of the new F-35 Joint Strike Fighter are ramping up. Lockheed handed over 12 in the most recent quarter, up from three a year earlier. The gains with the F-35 mitigated a profit decline in Lockheed’s Aeronautics unit, which is seeing a slowdown in its aging F-16 fighter.

The company earned $859 million, or $2.64 per share, for the quarter that ended June 30. That was up from $781 million, or $2.38 per share, during the quarter that ended June 24 last year. Analysts surveyed by FactSet had been expecting a profit of $2.20 per share, with revenue of $11.14 billion.

Lockheed boosted its 2013 profit outlook, saying it now expects to earn $9.20 to $9.50 per share, up from previous guidance of $8.80 to $9.10 per share. It left its revenue outlook unchanged at $44.5 billion to $46 billion.

Analysts had expected a 2013 profit of $9.02 per share on revenue of $44.88 billion. AP




All of this week's top headlines to your email every Friday.


 
 

 

Headlines April 14, 2014

Business: U.S. Navy looks to leverage submarine work to keep costs down - The U.S. Navy hopes to save money and time by leveraging industry investments as it replaces its Ohio-class nuclear-armed submarines with the Virginia-class attack submarines now built by General Dynamics Corp and Huntington Ingalls Industries Inc.  Study raises red flags on California aerospace...
 
 

News Briefs April 14, 2014

U.S. Navy destroyer Zumwalt christened in Maine The U.S. Navy has christened the first ship of its newest class of destroyers, a 610-foot (186-meter)-long warship with advanced technologies and a stealthy design that will reduce its visibility on enemy radars. The warship bears the name of the late Adm. Elmo ìBudî Zumwalt, who became the...
 
 
Navy photograph by Seamn Edward Guttierrez III

Russian aircraft flies near U.S. Navy ship in Black Sea

Navy photograph by Seamn Edward Guttierrez III Sailors man the rails as the Arleigh Burke-class guided-missile destroyer USS Donald Cook arrives at Naval Station Rota, Spain, Feb. 11, 2014. Donald Cook is the first of four Arle...
 

 

45th Space Wing launches NRO Satellite on board Atlas V

The 45th Space Wing successfully launched a United Launch Alliance Atlas V rocket from Space Launch Complex 41, Vandenberg Air Force Base, Calif., at 1:45 p.m. April 10 carrying a classified national security payload. The payload was designed and built by the National Reconnaissance Office. “I am proud of the persistence and focus of the...
 
 

U.S. Air Force selects Cubic for Moroccan P5 air combat training system

Cubic Defense Systems, a subsidiary of Cubic Corporation announced April 11 it has been awarded a contract valued at more than $5 million from the U.S. Air Force to supply its P5 Combat Training System to the Moroccan Air Force. Morocco will join the United States Air Force, Navy, and Marine Corps, along with a...
 
 
Lockheed Martin photograph

NASA’s Orion Spacecraft powers through first integrated system testing

Lockheed Martin photograph Engineers in the Operations and Checkout Building at NASA’s Kennedy Space Center in Florida, perform avionics testing on the Orion spacecraft being prepared for its first trip to space later this ye...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>