Lockheed Martin cuts earnings projections

Maryland Watch

November 19, 1998

Bethesda-based Lockheed Martin Corp., the world's second-biggest aerospace and defense company, has told analysts that its profit will be smaller than expected in the fourth quarters of this year and next year because of increased costs and order delays.

The company made the forecast during a conference call Tuesday.

Yesterday, Prudential Securities analyst Todd Ernst cut his fourth-quarter estimate to $2.05 a share from $2.10 and cut the full-year estimate to $6.66 from $6.71. Ernst, who has a "hold" rating on Lockheed, cut his 1999 estimate to $7.30 from $7.40.

Lockheed was expected to earn $2.09 in the fourth quarter, $6.70 this year and $7.40 next year, based on the average estimate of analysts surveyed by First Call Corp.

Shares in Lockheed Martin fell $1.4375 yesterday to close at $103.375.

Lockheed told analysts that start-up costs for a contract for the ,, Evolved Expendable Launch Vehicle (EELV) will be higher than expected, partly related to a change in how the company accounts for costs. It said also that some work it expected in the fourth quarter has been pushed back to the first quarter of 1999.

Pub Date: 11/19/98

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