Lockheed’s profit grows but the company warns of tough times ahead

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Lockheed’s profit grows but the company warns of tough times ahead
By Marjorie Censer, Published: October 26

Lockheed Martin, the world’s largest defense contractor, reported Wednesday that its third-quarter profit grew 25 percent, buoyed by growth in all four of its operating segments.

Still, the numbers reflect a company facing a difficult time. Although sales and profit were up, the Bethesda-based corporation noted that it paid special charges related to job cuts and cautioned that more cutbacks at the Pentagon could take a toll.

Robert J. Stevens, Lockheed’s chairman and chief executive, said that the uncertainty about the Pentagon’s budget and government spending is making it difficult to ensure that the company is best positioned for the future.

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Lockheed reported a profit of $700 million ($2.10 per share) in the three-month period, up from $560 million ($1.54) in the same period a year earlier. Quarterly revenue grew 6.8 percent to $12.1 billion.