Lockheed Martin Corp.'s (LMT) first-quarter net income fell 8.8%
on higher pension-related expenses, though the defense contractor
raised its full-year profit outlook.
Lockheed, the biggest supplier of information technology to the
U.S. government, recorded net income of $666 million, or $1.68 a
share, compared with $730 million, or $1.75 a share, a year
earlier. The latest results included 19 cents in pension-related
expenses, while the prior year's results were boosted 5 cents by a
pension adjustment.
Revenue increased 3.9% to $10.37 billion.
Analysts polled by Thomson Reuters expected earnings of $1.64
and revenue of $10.51 billion.
Lockheed posted a 5.2% increase in information systems and
global services earnings, as revenue rose 10% on higher volume on
enterprise civilian services. Aeronautics division profits grew
9.9% as revenue edged down 0.9% on declines in combat aircraft.
Looking ahead, the company raised the range of its full-year
earnings outlook to $7.15 to $7.35 a share from January's
projection of $7.05 to $7.25. The company affirmed its revenue
guidance of $44.7 billion to $45.7 billion.
Analysts have said the defense industry may enter a downturn as
the Obama administration sets its priorities elsewhere. Earlier
this month, U.S. Defense Secretary Robert Gates proposed sweeping
changes to weapons programs, including ending production of
Lockheed's F-22 Raptor at 187 jets. However, Standard & Poor's
Ratings Services said those proposed changes likely won't hurt
defense companies in the short term, since they won't take effect
for at least a year.
The company, like other defense contractors, has also been
looking to military support work to augment its traditional
aerospace engineering work. To that end, it won a 10-year contract
worth up to $5 billion to supply U.S. commandos with logistics
support, unseating L-3 Communications Holdings Inc. (LLL).
Lockheed Martin's shares closed Monday at $75.73 and haven't
traded premarket.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com