Lockheed operating profit falls as Pentagon pares
Lockheed Martin said its fourth-quarter operating profit shrank and it predicted a smaller 2011 profit with the defense contractor contending with an increasingly frugal Pentagon.
Revenue for the quarter rose to $12.79 billion. But it was tougher to find bigger profits. For instance, its aeronautics division saw profits fall almost 4 percent to $410 million as it sold fewer F-22 and F-16 fighters, even as work increased for the new F-35. But margins are smaller on new programs like the F-35.
Selling its Enterprise Integration Group business brought in a $184 million gain, or 51 cents per share, for the quarter, and pushed its net income to $983 million, up almost 19 percent from a year earlier. It earned $829 milion, or $2.30 per share, from continuing operations. Analysts surveyed by FactSet were expecting a profit of $2.17 per share.
"I believe it was very solid performance in a very demanding year," Chairman and CEO Bob Stevens said. "Looking ahead, our employees are focused on providing increasingly affordable solutions to our customers and continuing strong financial results for our shareholders."
Lockheed says it expects to sell its Pacific Architects and Engineers business during the first quarter of this year.