Lockheed posts loss of 11 cents a share

2nd-quarter results called `pretty dismal'

Aerospace

July 21, 1999|By Mark Guidera | Mark Guidera,SUN STAFF

Bethesda-based Lockheed Martin Corp., struggling from setbacks in a military cargo plane program and delays in rocket launches, reported yesterday a second-quarter loss of $41 million, or 11 cents a share, on revenue of $6.2 billion.

In the second quarter of last year, the world's second-largest aerospace company booked net income of $289 million, or 76 cents a share, on revenue of $6.5 billion.

A loss had been expected because Lockheed had warned of a shortfall in early June. According to First Call Corp., however, analysts surveyed had been expecting a bigger loss of 13 cents a share for the quarter, which ended June 30.

But analysts still weren't happy with the company.

"They'll have done $6.5 billion in business and lost money," said Paul Nisbet, an analyst with JSA Research Inc. "That's pretty dismal."

Vance Coffman, Lockheed's chief executive officer, said the aerospace and defense contractor's management team was focused on reducing costs and improving performance.

"We will build on our inherent strengths delivering better quality, cost performance and mission success for our customers," said Coffman.

Lockheed said problems that affected its quarterly earnings included delayed manufacturing of its C-130J cargo plane, fewer orders for commercial satellites and postponed launches of its Atlas and Proton rockets.

The company has warned that higher costs and delivery delays will result in its falling short of earlier estimates that it would show a profit for the full year.

The company said the second quarter's high points included several new aircraft orders, including a $1.8 billion deal with Israel for 50 F-16 jet fighters.

Lockheed Martin shares, which have fallen more than 30 percent in the past year, declined 75 cents to $38 yesterday.

Bloomberg News contributed to this article.

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