NEW YORK (Reuters) - Top U.S. defense contractor Lockheed Martin Corp. (LMT.N) on Tuesday reported third-quarter earnings fell 25 percent after a charge for the early retirement of debt, but soaring demand for the company's fighter and transport planes pushed revenues to a record.þþThe Bethesda, Maryland-based maker of satellite and missile systems also raised its outlook for sales for 2003 and 2004, citing increased demand for its government satellite and F-35 programs.þþLockheed posted third-quarter net profit of $217 million, or 48 cents per share, compared with $290 million, or 64 cents per share, in the year-ago period.þþEarnings for this year included an after-tax charge of $83 million, or 18 cents per share, related to long-term debt retirement. The year-ago period included a loss from discontinued operations of $10 million, or 2 cents per share.þþ``They look good when you take out the fact that the debt charge was larger than expected,'' said Cai von Rumohr, an aerospace and defense analyst with investment firm SG Cowen. ``Guidance has gone up from where it was.''þþRevenue jumped 23 percent to a quarterly record of $8.1 billion on stronger sales for the F-35 Joint Strike Fighter and F/A-22 fighter planes.þþExcluding the charge, the company reported earnings of $300 million, or 66 cents per share, in line with results from a year ago.þþThe company had said in July it expected to earn 55 cents to 60 cents per share in the third quarter.þþLockheed, which also makes hardware for special operations helicopters and Titan satellites, said it expects to recoup the 18 cent-per-share charge over the next two years as it benefits from lower interest expenses. þþSALES FORECAST RAISEDþþThe maker of Patriot missiles repeated its earlier forecast for 2003 earnings per share between $2.25 to $2.35 in 2003, including 24 cents in charges for the debt retirement and closing a commercial mail sorting business. Analysts had expected profit of $2.32 per share, according to Reuters Research, a unit of Reuters Group Plc.þþLockheed's forecasts exclude any possible gains or charges related to acquisitions, such as the $1.8 billion purchase of defense technology company Titan Corp (TTN.N) announced Sept. 15.þþLockheed raised its 2003 sales forecast to a range of $31 billion to $32 billion, from its earlier projection of $30.5 billion to $31.5 billion.þþFor 2004, the company raised its outlook for sales to a range of $33 billion to $34 billion, up from its prior forecast of $31.5 billion to $33.0 billion.þþAnalysts had expected the company to post 2003 sales of $31.17 billion and 2004 sales of $32.76 billion, according to Reuters Research.þþShares of Lockheed closed at $46.29 on Monday on the New York Stock Exchange. The stock has fallen almost 20 percent so far this year on worries that defense spending may fall and as pension expenses have risen. The Standard & Poor's aerospace and defense index (.GSPAERO), by contrast, has risen 6.6 percent. þþ
Source: NY Times
