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.


 
 

 
boeing-avianco

Boeing, Avianca celebrate delivery of airline’s first 787 Dreamliner

Boeing and Avianca have celebrated the delivery of the first 787 Dreamliner for the Latin American carrier, helping the airline stay at the forefront of technology in the region. “The addition of the first Boeing 787-8 to...
 
 
boeing-boc-737

Boeing, BOC Aviation finalize order for two additional 737-800s

Boeing and BOC Aviation have finalized an order for two additional 737-800s, valued at $186 million at current list prices. The order is a part of the Singapore-based leasing company’s effort to grow its portfolio of fuel...
 
 

Northrop Grumman names chief compliance officer

Northrop Grumman has named Carl Hahn vice president, chief compliance officer, effective Jan. 15, 2015. Hahn is succeeding Judy Perry Martinez, who will be retiring, and will report to Sheila C. Cheston, corporate vice president and general counsel. “Carl brings to his role at Northrop Grumman a tremendous breadth of experience in global compliance, investigations...
 

 

GPS modernization advances as eighth Boeing GPS IIF becomes sctive

EL SEGUNDO, Calif. ñ The eighth Boeing Global Positioning System IIF satellite has completed on-orbit checkout and joined the active 31-satellite constellation, helping the U.S. Air Force continue modernizing the network that millions of people worldwide use. The Air Force and Boeing have now put four GPS-IIF satellites into service this year, adding to the...
 
 
GPS-OCX

GPS III, OCX successfully demonstrate key satellite command, control capabilities

Lockheed Martin and Raytheon successfully completed the fourth of five planned launch and early orbit exercises to demonstrate new automation capabilities, information assurance and launch readiness of the worldís most powerfu...
 
 

Aerojet Rocketdyne successfully demonstrates 3D printed rocket propulsion system for satellites

Aerojet Rocketdyne has successfully completed a hot-fire test of its MPS-120 CubeSat High-Impulse Adaptable Modular Propulsion System. The MPS-120 is the first 3D-printed hydrazine integrated propulsion system and is designed to provide propulsion for CubeSats, enabling missions not previously available to these tiny satellites. The project was funded out of the NASA Office of Chief...
 




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>