Earnings

Lockheed Martin's revenue rises 15.7 percent

Lockheed Martin and 33rd Fighter Wing personnel work with 96th Fuels Flight airmen at Eglin Air Force Base, Florida.
Photo: Samuel King Jr. | Flickr Commons

Lockheed Martin reported a 15.7 percent rise in quarterly sales and raised its forecast for the year, helped by the acquisition of helicopter maker Sikorsky Aircraft and higher sales of its F-35 fighter jets.

The $9 billion acquisition of Sikorsky Aircraft from United Technologies in November boosted sales in its mission systems and training (MST) business, which is also its second largest division.

Revenue from its aeronautics business increased 21 percent, led by higher F-35 fighter jet sales. The business is Lockheed's biggest, accounting for 34 percent of its total revenue.

The F-35 Joint Strike Fighter is the Pentagon's largest weapons program and it is expected to spend $391 billion to buy 2,443 of the supersonic, stealthy new warplanes.

The Pentagon's No. 1 weapons supplier now expects 2016 profit of $11.50 to $11.80 per share, up from its previous forecast of $11.45 to $11.75 per share.

The company's net sales rose to $11.70 billion in the first quarter ended March 27 from $10.11 billion a year earlier.

However, net income fell to $794 million, or $2.58 per share, from $878 million, or $2.74 per share, a year earlier.

Net income in the latest quarter included special charges of 21 cents per share related to job cuts.

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Analysts had expected first-quarter profit of $2.59 per share on revenue $11.34 billion, according to Thomson Reuters I/B/E/S.

Up to Monday's close, Lockheed's stock had risen 16 percent in the past 12 months, compared with a 1.4 percent decline in the S&P 500 index.