Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Lockheed Martin, Boeing Announce Furloughs Due To Government Shutdown

10/5/2013 3:39 AM ET

Defense contractor Lockheed Martin Corp. (LMT: Quote) announced Friday that the government shutdown has forced it to furlough 3,000 workers from across its business units. The company said it has already identified employees to be sent on temporary unpaid leave, effective from Monday.

Bethesda, Maryland-based Lockheed Martin added that the number of employees on furlough could increase on a weekly basis if the government shutdown is prolonged.

"I'm disappointed that we must take these actions and we continue to encourage our lawmakers to come together to pass a funding bill that will end this shutdown," President and CEO Marillyn Hewson said in a statement.

The affected employees also include those who are unable to work at government facilities as they remain closed during the shutdown. It will also include employees working on projects that require government inspection for the work to go ahead, or at projects that have received stop work order.

"In an effort to minimize the impact on our employees, we are directing affected employees to use available vacation time so they can continue to receive their pay and benefits. We hope that Congress and the Administration are able to resolve this situation as soon as possible," Hewson added.

Meanwhile, a spokeswoman for aerospace and defense giant Boeing Co. (BA: Quote) revealed Friday that it could furlough some employees next week at its defense and space operations if the shutdown continues. She added that the furloughs are not expected to currently impact its commercial airplanes business.

United Technologies Corp. (UTX: Quote), parent company of jet engine manufacturer Pratt & Whitney, Otis elevator, and Sikorsky aircraft, also had announced Wednesday that it will furlough 2,000 employees at its aerospace businesses by Monday. It added that the furloughs could double to 4,000 next week and also exceed 5,000 if the government shutdown continues into November.

The furloughs at United Technologies is due to the absence of Defense Contract Management Agency (DCMA) inspectors who audit and approve operations throughout the manufacturing process for military products.

LMT closed Friday's regular trading session at $122.50, down $0.33 on a volume of 2.49 million shares.

Register
To receive FREE breaking news email alerts for Lockheed Martin Corp. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Chipmaker Advanced Micro Devices Inc. said Thursday after the markets closed that its first quarter loss narrowed from last year, helped by strong revenue growth in its graphics and visual solutions business. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. After trending higher over the past few sessions, stocks showed a lack of direction throughout the trading day on Thursday. The major averages spent the session bouncing back and forth across the unchanged line before ending the day mixed. While the major averages closed on opposite sides of the unchanged line, they all showed only modest moves. U.S. Secretary Of State John Kerry said Thursday that he and his counterparts from Russia, Ukraine and the European Union have reached an agreement on a preliminary plan for ending the ongoing crisis in Ukraine. Kerry was speaking at the end of the Ukraine contact group's first meeting, comprising the foreign ministers of Russia, Ukraine, the EU and the U.S., in the Swiss city of Geneva.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.