Lockheed Martin earnings benefit from overseas demand
27 Apr 2011
New York: US defence contractor Lockheed Martin Corp said Tuesday its first-quarter earnings benefited from overseas demand, reduced costs and higher sales volumes. The Bethesda, Md.-based company also raised its profit forecast for the full year,
Operating margins for the quarter expanded in three of its four business segments, driving profit growth at its electronic and space systems units, which saw higher sales related to air and missile-defence technology, particularly to overseas customers.
With the F-22 jet fighter programme being wound down margins at Lockheed's aeronautics segment did contract, but were offset by increased global deliveries of the C-130J military transport plane.
''Here we see again an excellent illustration of how international work can stabilize programmes, and where additional volume can directly contribute to cost reduction and affordability goals,'' said chairman and chief executive Bon Stevens, on a call with analysts.
Shares of Lockheed, which in the past year declined about 9%, rose 1.6% to $78.67.
For the first quarter, Lockheed said earnings from continuing operations rose to $548 million, or $1.55 a share, from $519 million, or $1.38 a share, in the year-ago period.
Sales for the quarter increased to $10.6 billion from $10.3 billion, with strong revenue growth in the company's aeronautics and electronics segments.
