Tags: Lockheed Martin | Earnings | Profit | Pension Plan

Lockheed Martin Profit Rises on Pension Plan Change

Tuesday, 22 Jul 2014 08:09 AM

Lockheed Martin Corp., the Pentagon's largest defense supplier, reported a 3.5 percent rise in quarterly profit as it benefited from a change in pension plans for some non-union employees.

The maker of the F-35 fighter jet, satellites and coastal warships also raised its 2014 earnings forecast to $10.85-$11.15 per share from $10.50-$10.80.

Lockheed's shares were up 2.4 percent before the bell.

Lockheed has amended some of its pension plans for non-union employees to freeze future retirement benefits and will instead transition them to a contribution retirement savings plan.

The company said it recorded pension income of $85 million for the second quarter ended June 29, compared with an expense of $120 million a year earlier.

Lockheed also said it expects to resume share repurchases in the current quarter. The company had ceased buybacks while it was considering amendments to its benefit pension plans.

The company's net income rose to $889 million, or $2.76 per share, from $859 million, or $2.64 per share, a year earlier.

Lockheed reported a 13 percent rise in revenue at its aeronautics business - its largest unit - due to a larger number of production contracts for the F-35 fighter jet.

With an estimated cost of $400 billion, the radar-evading jet is the world's most expensive weapons project.

Total revenue fell about 1 percent to $11.31 billion, hurt by a decline in U.S. government spending.

Lockheed's shares have gained about 41 percent in the past year, compared with a 16 percent rise in the S&P 500 index. They were up at $167 in premarket trading after closing at $162.98 on the New York Stock Exchange on Monday.

© 2017 Thomson/Reuters. All rights reserved.

 
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Lockheed Martin Corp., the Pentagon's largest defense supplier, reported a 3.5 percent rise in quarterly profit as it benefited from a change in pension plans for some non-union employees.
Lockheed Martin, Earnings, Profit, Pension Plan
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2014-09-22
Tuesday, 22 Jul 2014 08:09 AM
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