By The Associated Press
Published: 26 July 2011
BETHESDA, Md. — Lockheed Martin Corp. said Tuesday that its second-quarter profit dropped 10 percent, burdened by a charge tied to some job cuts and a pension adjustment. But its results still topped analysts’ expectations.
The aerospace and defense contractor raised its 2011 earnings guidance to a range above Wall Street’s forecast. It also increased the low end of its revenue guidance, but reduced the high end of that outlook.
Lockheed’s stock rose $2.19, or 2.8 percent, to $81.49 in premarket trading.
For the quarter ended June 26, Lockheed reported net income of $742 million, or $2.14 per share, down from $824 million, or $2.22 per share, a year earlier.
The job cuts-related charge, which is tied to its aeronautics and space systems units, lowered earnings by 18 cents per share.
In June Lockheed said it planned to cut 1,200 employees in its space systems equipment division. Two weeks later the company said it planned to cut 1,500 additional jobs within its airplane-making business.
And last week the Bethesda, Md. company announced a voluntary layoff program for about 6,500 U.S.-based employees. The program will be offered to salaried employees in the corporate headquarters and enterprise business services organizations.
Lockheed employs about 126,000 people worldwide.
Lockheed said the pension adjustment reduced its quarterly earnings by 41 cents per share. The current quarter’s results also included a tax benefit of 26 cents per share.
Analysts surveyed by FactSet predicted adjusted earnings of $1.94 per share.
Revenue rose 2 percent to $11.55 billion from $11.28 billion on increased revenue at its aeronautics and electronic systems segments.
The performance beat Wall Street’s revenue estimate of $11.45 billion.
Lockheed now foresees 2011 earnings of $7.35 to $7.55 per share on revenue of $46 billion to $47 billion. The company’s previous guidance was for earnings between $6.95 and $7.25 per share, with revenue in a range of $45.75 billion to $47.25 billion.
Analysts expect full-year earnings of $7.27 per share on revenue of $46.68 billion.
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