wpostServer: http://css.washingtonpost.com/wpost
Robert H. Smith School of Business
The Motley Fool

Market Foolery Featured Podcasts

  • MarketFoolery 04.23.2014
    On today’s show the guys talk about Amazon’s newly announced deal with HBO and what it means for the site. Plus they talk earnings from Intuitive Surgical, Yum! Brands, and more.
  • MarketFoolery: 04.22.2014
    Netflix rises on strong 1st quarter numbers and a well-executed price increase.  Valeant Pharmaceuticals makes a $45 billion bid for Allergan.  Plus, we analyze the latest results from McDonald’s and the new “Pay To Quit” program at Amazon.
  • MarketFoolery: 04.21.2014
    Hasbro shares rise on 1st-quarter profits.  LinkedIn tops the 300 million member mark.  And we dip into the Fool Mailbag to discuss the prospects for Airbnb’s potential IPO.
Capital Business
Posted at 12:03 PM ET, 07/23/2013

Lockheed profit up, despite federal budget cuts

Bethesda-based Lockheed Martin reported higher profit for its most recent quarter on Tuesday and said automatic government spending cuts
(Andrew Harrer - BLOOMBERG)
are taking less of a toll on the company than it had anticipated.

Earlier this year, the world’s largest defense contractor had said it expected that sequestration — or the automatic cuts -- would wipe out $825 million in anticipated annual revenue.

But on Tuesday, Bruce L. Tanner, Lockheed’s chief financial officer, said the forecast has improved and that other military accounts, such as operations and maintenance spending, are taking more of the blow from sequestration..

“We’re seeing less impact ... than we had expected to see through the first half of the year,” he said during a call with reporters. “It’s somewhat hard for us to imagine that the full impact will be realized.”

Lockheed reported that quarterly sales hit $11.4 billion, a roughly 4 percent drop from the same three-month period a year earlier. Profits climbed to $859 million ($2.64 per share), up nearly 10 percent from the same quarter the previous year.

But chief executive Marillyn A. Hewson told reporters that government cutbacks will still affect Lockheed.

For instance, she said, the cuts might cause the company to restrict the number of flight tests, and Lockheed expects “continued delays in government contracts.”

In its aeronautics group, the company reported stable sales. While profit declined, Lockheed said it got a boost from its F-35 program, which showed increased production volume. The fighter jet program is Lockheed’s largest and has been the subject of criticism from Pentagon officials. Company officials said Tuesday that they are seeing support for the effort.

Local defense contractors General Dynamics and Northrop Grumman are set to report their earnings Wednesday.

By  |  12:03 PM ET, 07/23/2013

Read what others are saying

    © 2011 The Washington Post Company