Lockheed Martin is going great guns in spite of US budget cuts

City A.M. Reporter
LOCKHEED Martin, the Pentagon’s largest supplier, yesterday beat analysts’ forecasts with a 10 per cent rise in second-quarter earnings and lifted its full-year profit forecast.

Lockheed, which builds F-35 fighter jets, Aegis missiles and new coastal warships, reported net earnings of $859m (£559.7m), up from $781m a year earlier. Earnings per share rose to $2.64 from $2.38.

Revenues fell about four per cent to $11.4bn. Analysts had expected earnings of $2.20 per share on revenue of $11.1bn.

“Overall, we had strong operational performance and programme execution across all business areas this quarter, enabling us to increase 2013 financial guidance for operating profit, earnings per share and cash from operations,” chief executive Marillyn Hewson said.

Lockheed said it now expects earnings per share of $9.20 to $9.50 in the full year, up four per cent from its guidance in April.

Revenue was down or flat in four of its five operating units in the second quarter. The exception was missiles and fire control, where sales rose 11 per cent. Operating profit was lower in aeronautics, information systems and space business, but grew in missiles and fire control and mission systems.