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Lockheed soars in 2Q
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July 26, 2001: 10:06 a.m. ET
Defense contractor trims costs, debt, beats forecasts despite lower sales
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NEW YORK (CNNfn) - Lockheed Martin Corp., the biggest U.S. defense contractor, said second-quarter profit tripled from a year earlier, beating Wall Street expectations on reduced debt and streamlined costs that offset declining sales.
The Bethesda, Md.-based maker of the F-16 fighter jet also raised its 2001 and 2002 earnings guidance to reflect higher interest income associated with better cost management. It now expects 2001 profit 30-35 percent above the $1.07 a share it posted in 2000, and a 20 percent increase in fiscal 2002 earnings per share from 2001.
Those forecasts exclude any unusual or non-recurring items.
For the quarter ended June 30, Lockheed Martin (LMT: up $0.80 to $38.15, Research, Estimates) reported net earnings of $144 million, or 33 cents a share, up from $42 million, or 11 cents a share, a year earlier. Analysts on average forecast 29 cents a share, according to earnings tracker First Call.
Net sales fell to $6 billion from $6.2 billion. For the full year, sales should total $24.6 billion to $24.8 billion, the company said.
Sales declined at Lockheed's Systems Integration, Space Systems, Aeronautics and Technology Services segments.
The company said sales should increase in the second half of the year due to the timing of C-130J airlifter deliveries and Atlas satellite launches as well as the continuation of historical sales trends in the Systems Integration and Technology Services business areas.
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Lockheed generated about $40 million of free cash flow in the second quarter. It now expects to generate at least $1 billion of free cash flow for 2001 and $1.8 billion to $2 billion over the two-year period 2001 to 2002. 
from staff and wire reports
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Lockheed Martin
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