Lockheed Martin Second-Quarter Profit Rises

Lockheed Martin reported a greater-than-expected 13 percent increase in quarterly profit and raised its full-year profit forecast, as sales of its electronic defense systems and a one-time gain offset lower sales for its F-16 fighter jet program.

Lockheed , the world's biggest defense contractor, is expanding its work in military and civilian electronics, and has long expected a dip in sales of its older F-16 jet, before its next-generation Joint Strike Fighter comes into full production over the next few years.

The company, based in Bethesda, Maryland, reported a second-quarter profit of $882 million, or $2.15 per share, compared with $778 million, or $1.82 per share, in the year-earlier quarter.

Wall Street had expected $1.88 per share, on average, according to Reuters Estimates.

Sales rose 4 percent to $11 billion, helped by higher revenues in its electronic, information and space systems units.

The profit figure was inflated by a one-time gain of 14 cents per share, related to a settlement with the U.S. government over the sale of some land several years ago.

Factoring in the one-time gain, lower interest expenses and improved performance in its main units, Lockheed raised its full-year earnings forecast to a range of $7.45 to $7.60 per share, up from its April forecast of $7.15 to $7.35 per share.

Analysts are expecting $7.45 per share, on average.

Copyright 2008 Reuters. Click for restrictions.