Join The Discussion

 

Trademark closes on 63-acre Waterside site in Fort Worth

Construction begins Oct. 20 on the development, to be anchored by a Whole Foods Market.

read more >

Two Fort Worth council members propose temporary single-family moratorium around TCU

The moratorium would apply to new permits for single-family homes around TCU, and give the city time to figure out what to do with a controversial proposed overlay in several neighborhoods around the university.

read more >

Fresh Ebola fears hit airline stocks

DALLAS (AP) — News that a nurse diagnosed with Ebola flew on a plane full of passengers raised fear among airline investors that the scare over the virus could cause travelers to avoid flying.

read more >

Landscape architect behind several TCU landmarks acquired

The Dallas design firm behind several Texas Christian University projects, as well as Globe Life Park in Arlington and AT&T Stadium, has been acquired by Rvi Planning + Landscape Architecture.

read more >

Fort Worth launching Stockyards design task force

The task force, to be chaired by the Fort Worth architect Eric Hahnfeld, would be responsible for confirming the boundaries of the city's planned Stockyards design district and reviewing the work of a consultant.

read more >

Lockheed Martin second-quarter profit beats analyst estimate

Jonathan D. Salant
(c) 2014, Bloomberg News.
WASHINGTON — Lockheed Martin Corp., the largest U.S. government contractor, topped analysts' estimates for second-quarter profit and sales on the strength of its aircraft division.

Net income rose 3.5 percent to $889 million, or $2.76 a share, from $859 million, or $2.64, a year earlier, in part due to lower pension costs, the company said Tuesday in a statement. The average estimate of 21 analysts surveyed by Bloomberg was $2.66 a share. Lockheed also boosted its full-year profit outlook.

The maker of the F-35 jet, the Pentagon's most expensive weapons system, was the first of the five largest federal contractors to report earnings this week. Like other big Pentagon suppliers, Lockheed has been cutting costs to maintain profitability as government budget reductions and the wind-down of the U.S.-led military presence in Afghanistan hurt sales.

Sales declined less than 1 percent in the quarter to $11.3 billion, and beat the average $11.1 billion estimate of 17 analysts surveyed by Bloomberg.

The Bethesda, Maryland-based company raised its full-year profit outlook to $10.85 to $11.15 a share from $10.50 to $10.80 a share in April. The company affirmed its January estimate of $44 billion to $45.5 billion in sales for the year.

Marillyn Hewson, Lockheed's chairman and chief executive officer, in a statement attributed the higher forecast to "solid program execution and operational performance."

The performance of Lockheed's largest division, aeronautics, provided a buffer in the second quarter. The unit's sales jumped 13 percent to $3.86 billion, helped by the F-35.

Aeronautics was the only division to post a gain in operating profit, propelled in part by the F-22 jet and C-130 transport plane programs. Aeronautics' operating profit rose 11 percent to $453 million in the quarter from a year earlier.

The F-35 development contract had higher operating profit of $85 million due to an adjustment in the second quarter of 2013. Operating profit was comparable for F-35 production contracts.

Lockheed's other units are space systems, mission systems and training, missiles and fire control, and information systems and global solutions.

Lockheed is increasingly relying on the F-35 jet. The program accounted for 18 percent of Lockheed's second-quarter sales, Chief Financial Officer Bruce Tanner said Tuesday in a conference call with reporters.

"That number will only continue to grow," Tanner said. "It's a pretty significant piece of our business."

The jet program accounted for 16 percent of sales in 2013 and 14 percent a year earlier, according to federal regulatory filings.

Federal budget reductions contributed to the fourth consecutive annual decline in U.S. government contracting last year, the longest stretch since Ronald Reagan was president.

In January, President Barack Obama signed a $1.1 trillion spending bill to fund the government through Sept. 30 and alleviate some of the cuts set to take effect under the budget- cutting process known as sequestration.

 

< back

Email   email
hide
Ebola
How worried are you about Ebola spreading?