Lockheed Reports 5.25% 2Q Profit Gain As Sequestration Looms; Bob Stevens Comments

Lockheed Martin (NYSE: LMT) announced financial results for its fiscal year 2012 second quarter, reporting a 5.25 percent increase in net earnings over the prior year period.

The company also reported $1.2 billion in quarterly total consolidated operating profit, a 20.8 percent increase over the $993 million reported in the fiscal 2011 second quarter.

The company’s aeronautics, electronic systems and space systems business segments all reported year-over-year increases in both net sales and operating profit.

Chairman and CEO Bob Stevens said in a release that while potential budget cuts as a result of sequestration have created uncertainty for contractors, “we are maintaining an unwavering commitment to program execution and cost reduction throughout the organization.”

Aeronautics also recorded a 9 percent increase in net sales during the first six months of 2012 compared to the corresponding period in 2011 and 16 percent higher operating profit year-over-year for the first six months.

The company attributed the increases to increased production and risk retirements related to the F-35 and increased deliveries of the C-130 Hercules and the F-16 Fighting Falcon.

For electronic systems, the company said it saw higher volume and risk retirements from ship and aviation programs including the Persistent Threat Detection System, Littoral Combat Ship and MH-60 helicopter.

Lockheed reported 18 percent higher net sales for the second quarter year-over-year in space systems, citing increased commercial satellite deliveries and increased production on the Orion space vehicle.

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