By Lisa Beilfuss
Lockheed Martin Corp. reported a 5.9% decline in first-quarter
profit as lower government defense spending dented its revenue.
The defense contractor reported earnings of $878 million, or
$2.74 a share, down from $933 million, or $2.87 a share, a year
earlier. Revenue fell 5.1% to $10.11 billion.
Analysts polled by Thomson Reuters were looking for a profit of
$2.50 a share on $10.3 billion in revenue.
For the year, Lockheed raised its earnings guidance from what
some analysts considered conservative projections issued in
January. The company new expects to book $10.85 to $11.15 in
per-share earnings, versus an earlier range of $10.80 to $11.10.
Lockheed continues to forecast $43.5 billion to $45 billion in
revenue.
Analysts have projected full-year profit of $11.14 a share and
$44.6 billion in revenue.
Lockheed's organic sales have fallen over the past three years
and are expected to decline again this year as the impact of
Pentagon cuts continues. Like smaller rival Raytheon Co., Lockheed
has projected a return to growth in 2016.
In the first quarter, sales in Lockheed's aeronautics segment,
its largest, dropped 7.4% to $3.1 billion. The company pointed to
fewer aircraft deliveries for the C-130 program.
Lockheed has benefited from its positions on programs such as
the F-35 that have been relatively protected from budget cuts, and
is also bidding on two of the largest upcoming contract awards this
year. The planned new Air Force bomber program is expected to cost
around $80 billion, while a replacement for the Army's Humvee
trucks is forecast to cost more than $30 billion.
Shares, up over 20% through Monday's close, were up slightly to
$197 in premarket trading.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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