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 October 17, 2014

News: Turkey OK’s American drones to fight ISIS - Turkey is now allowing the U.S. to launch unmanned aircraft to fly over Syria. But so far, traditional warplanes are out of the question. New Ingalls boss focusing on cost performance, agility - Brian Cuccias has been in the Gulf Coast shipbuilding business for 35 years, working for...
 
 

News Briefs October 17, 2014

AM General laying off 60 from Indiana factory A company spokesman says AM General is laying off about 60 workers from the northern Indiana factory where it builds military vehicles. Company spokesman Jeff Adams says the layoffs are being made because of production schedule changes at its Military Assembly Plant in Mishawaka. Adams tells the...
 
 
Image courtesy of NASA, J. Lotz, (STScI

NASA’s Hubble finds extremely distant galaxy through cosmic magnifying glass

Image courtesy of NASA, J. Lotz, (STScI The mammoth galaxy cluster Abell 2744 is so massive that its powerful gravity bends the light from galaxies far behind it, making these otherwise unseen background objects appear larger a...
 

 
Northrop Grumman photograph by Alan Radecki

Second Northrop Grumman-built Triton UAS completes first flight

Northrop Grumman photograph by Alan Radecki The second MQ-4C Triton, built by Northrop Grumman for the U.S. Navy, successfully completed its first flight Oct. 15 PALMDALE, Calif. – The U.S. Navy’s second MQ-4C Triton un...
 
 
NASA photograph

NASA TV to air Russian spacewalk from International Space Station

NASA photograph Expedition 41 Commander Max Suraev and Flight Engineer Alexander Samokutyaev of the Russian Federal Space Agency will don Orlan spacesuits and step outside the International Space Station Oct. 22, to perform wor...
 
 
Raytheon photograph

Poland’s PIT-RADWAR signs letter of intent with Raytheon

Raytheon photograph Mike Shaughnessy, Vice President of Supply Chain, Raytheon Integrated Defense Systems and Jerzy Milosz, Member of Board and Director of R&D, PIT-RADWAR sign a letter of intent to explore further partners...
 




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>