By Katie Davis T he U.S. Government’s number one weapons supplier, Lockheed Martin Corp, reported better-than-expect- ed quarterly revenue. This news lifted Lockheed Martin Corp’s 2016 revenue to between $50.0 billion-$51.5 billion, up from $49.6 billion- $51.1 billion it previously estimated its expected full year sales to be and increased profit forecasts 2016 profit forecast to $12.15–$12.45 per share from $11.50-$11.80. An increase in deliveries of its F-35 fighter jets are most likely the reason for the better than expected results as its aeronautics business, the company’s biggest, increased 6 percent in the last three months as it delivered 14 F-35 jets, compared with 11 a year earlier. Lockheed Martin Corp has said it plans to deliver 53 of its F-35 jets by the end of 2016, up from 45 a year earlier, which is an increase in production of over 17 percent.
leave, which is impressive given that the company’s shares are already up 18 percent this year. The positive results from the world’s largest defense contractor are often seen as an indicator of what is to come for the U.S. defense sector. All eyes are on other defence giants, Northrop Grumman Corp and Raytheon Company, which are both due to report quarterly results. Lockheed Martin Corp results are a positive sign for the industry but they are also benefiting from their $9 billion acquisition of Sikorsky Aircraft last year from United Tech- nologies Corp. Things are looking good for Lockheed Martin Corp as the F-35 fighter is the Pentagon’s most costly expense in its arms program. The U.S. Defense Department expects to spend $379 billion to develop the plane and buy 2,457 of the super- sonic, stealthy new warplanes, in the coming decades.
News of the better-than-expected quarterly revenue for Lockheed Martin Corp saw the shares rise to a record
49
AUGUST 2016 • SPOTLIGHT ON BUSINESS
Made with FlippingBook Online document