Lockheed Martin (LMT) to Furlough 3,000 on Government Shutdown

NEW YORK (TheStreet) -- Lockheed Martin (LMT) may be the latest casualty of the government shutdown as the defense contractor announced it will furlough 3,000 employees Monday, October 7. The company expects that number to grow if the shutdown is prolonged.

The shutdown, stretching into its fourth day on Friday, is a result of a stalemate among Congressional leaders to agree on a new budget.

"I'm disappointed that we must take these actions and we continue to encourage our lawmakers to come together to pass a funding bill that will end this shutdown," CEO Marillyn A. Hewson said in a statement.

Lockheed Martin says an employee will be furloughed if their work takes place in a closed government facility, if their role requires government inspection, or if the company has received a stop-work order.

Boeing (BA) said it also anticipates "limited" furloughs as of next week, according to Bloomberg. And United Technologies (UTX), a supplier of helicopters to the U.S. military, says it could see as many as 5,000 workers furloughed if the shutdown stretches into November.

Shares of Lockheed Martin Corp stock were down today by $0.33 (0.27%) as of the close of trading. By the end of trading, 2.49 million shares changed hands compared to its average daily volume of 1.59 million shares. The stock ranged in price between $121.52 to $123.41 after opening the day at $123.40 as compared to the previous trading day's close of $122.83. Overall, Lockheed Martin Corp lagged the S&P 500 which was up 0.71%. 

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