Profits Double at Lockheed

The compan reiterates two years of forecasts.

Author:: Rebecca Byrne
Publish date:: Apr 23, 2002 10:50 AM EDT

Lockheed Martin

saw its first-quarter profits more than double from last year, prompting the firm to reiterate its financial targets for this year and next.

The No. 1 U.S. defense contractor said first-quarter earnings rose to $218 million, or 49 cents a share, from $105 million, or 25 cents a share, last year. Excluding discontinued operations, the company reported earnings of 50 cents a share for the quarter.

Thomson Financial/First Call had called for a profit of 47 cents a share.

Adjusting for an accounting change, and excluding nonrecurring and unusual items, pro forma earnings hit 40 cents a share in the quarter. Revenue reached $5.97 billion, compared with $4.75 billion last year.

"We are achieving solid organic sales growth and improved profitability while we continue to maintain focus on mission success and customer satisfaction," said Chairman and CEO Vance Coffman. "We are also pleased with our recent credit rating upgrade which reflects confidence in our cash generation, debt reduction and financial discipline."

The company maintained its 2002 revenue estimate of $25 billion to $25.8 billion and said sales for the year 2003 should be between $26.4 billion and $27.4 billion. The company also reaffirmed its 2002 earnings-per-share estimate of between $2.45 and $2.50 and said it expects 10% earnings growth in 2003.

Lockheed recorded about $8.5 billion in orders during the quarter and said it generated $338 million in free cash flow.