Defense contractor Lockheed Martin Corp. (LMT) on Thursday reported a 29 percent drop in profit for the fourth quarter, hurt by lower revenues at three of its four segments and higher special charges.
Looking ahead to fiscal year 2012, the company forecast earnings in line with analysts' expectations, but projects revenues below their estimates.
The Bethesda, Maryland-based company's fourth-quarter net income dropped to $683 million or $2.09 per share from $961 million or $2.67 per share in the prior-year period.
Earnings from continuing operations were $698 million or $2.14 per share, down from $821 million or $2.28 per share in the year-ago period. On average, 23 analysts polled by Thomson Reuters estimated earnings of $1.94 per share. Analysts' estimates usually exclude special items.
The decline in earnings reflected an increase in the FAS/CAS pension expense adjustment, lower Research and Development tax credits, and premiums on the early extinguishments of debt.
Net sales for the quarter declined 4.3 percent to $12.21 billion from $12.76 billion in the year-ago period. Analysts had a consensus estimate of $12.31 billion.
Sales increased 1 percent at the Aeronautics business to $3.86 billion. However, Electronic Systems sales declined 8 percent, while IS&GS segment sales decreased 3 percent and space systems net sales declined 7 percent.
The company's fourth-quarter orders were $19.8 billion, boosting the year-end backlog to $80.70 billion from $78.40 billion a year ago.
For fiscal year 2011, Lockheed Martin's net earnings from continuing operations were $2.67 billion or $7.85 per share, up from $2.61 billion or $7.10 per share last year. Net sales for the year rose 1.8 percent to $46.50 billion from $45.67 billion in the prior year.
Analysts expected the company to earn $7.61 per share on revenues of $46.59 billion.
Looking ahead to fiscal year 2012, Lockheed Martin forecast earnings from continuing operations of $7.70 to $7.90 per share on revenues in a range of $45 billion to $46 billion. Analysts expect the company to earn $7.77 per share on revenues of $46.20 billion.
Separately, the company named Larry Lawson as the executive vice president for its Aeronautics business, with effect from April 1. Lawson, currently serving as the vice president and general manager of the F-35 program, succeeds Ralph Heath, who is retiring after a 37-year career with Lockheed Martin.
LMT closed Wednesday's trading at $81.73, down $0.51 on a volume of 2.42 million shares.
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