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.


 
 

 

Northrop Grumman signs long-term agreement with Raytheon

Northrop Grumman has entered a long-term agreement with Raytheon to supply its LN-200 Inertial Measurement Unit for Raytheon optical targeting systems. The long-term agreement with Raytheon’s Space and Airborne Systems business extends through 2018. The LN-200 provides camera stabilization on optical targeting systems that conduct long-range surveillance and target acquisition for various...
 
 
AAR-Textron

AAR awarded new contract from Bell Helicopter Textron to support T64 engines

AAR announced April 22 that Bell Helicopter Textron Inc. awarded its Defense Systems & Logistics business unit a contract providing warehouse and logistics services in support of upgrading T64 engines for the Bell V-280 Val...
 
 

Pratt & Whitney’s engine wins Gold Edison Award™

Pratt & Whitney’s PurePower® Geared Turbofan™ engine has been awarded Gold in the transportation- aviation category of the 2015 Edison Awards. Pratt & Whitney is a division of United Technologies Corp. “Our dedication to innovation and identifying ways to continuously improve is in our blood at Pratt & Whitney,” said Greg Gernhardt, president, Pratt &...
 

 

Boeing names Space Launch System VP

Boeing has named John Shannon to be vice president and program manager for the Space Launch System, which will provide NASA with heavy-lift capability to send people and cargo into deep space. Boeing is designing, developing, testing and manufacturing the core stages and avionics for SLS. Shannon succeeds Virginia “Ginger” Barnes, who is retiring. He...
 
 

Germany’s Jenoptik, Raytheon partner to produce new generators for global Patriot

Raytheon is partnering with the Jenoptik subsidiary Lechmotoren, a part of the Jenoptik Defense & Civil Systems division, to produce advanced power generators for the Patriot Air and Missile Defense system. Under terms of this new contract, Jenoptik will build power plants, power generators, test equipment and spares for one of Patriot’s global partners. Raytheon...
 
 

Boeing tops first quarter profit forecasts, airplane deliveries rise

Boeing delivered more commercial airliners in the first quarter, offsetting sluggish results in the defense side of its business and pushing its first-quarter earnings up 38 percent. The profit topped Wall Street expectations, but revenue was below forecasts, and production costs of the Boeing 787 jet continued to pile up. The shares fell about 4...
 




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>