Defense contractor Lockheed Martin Corp. (LMT) reported Thursday a rise in fourth-quarter profit, as sales increased across all of its business segments. The company also raised its earnings guidance range for fiscal 2010 and reaffirmed full year sales forecast. For the fourth quarter, the Bethesda, Maryland-based company's net earnings increased to $827 million or $2.17 per share from $823 million or $2.05 per share in the previous year. On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $1.99 per share for the quarter. Analysts' estimates typically exclude special items. The company noted that fourth quarter results included a FAS/CAS pension adjustment charges of $114 million or $0.19 per share and an $11 million or $0.03 per share benefit from the resolution of an IRS examination, which, on a combined basis, decreased net earnings by $63 million, or $0.16 per share.
Meanwhile, the prior-year quarter included a FAS/CAS pension adjustment of $32 million or $0.05 per share and an unusual gain of $48 million $0.08 per share, which together increased net earnings by $52 million or $0.13 per share. For the third quarter, the company had reported net earnings of $797 million or $2.07 per share, up from $782 million or $1.92 per share reported in the same period in 2008.
Net sales for the fourth quarter grew 13% to $12.52 billion from $11.13 billion in the same quarter last year. Fourteen analysts had a consensus revenue estimate of $12.47 billion for the quarter. The company operates in four principal business segments: Aeronautics; Electronic Systems; Information Systems & Global Services or IS&GS and Space Systems. Net sales from Aeronautics increased 13% to $3.25 billion from $2.86 billion in the year earlier. Electronic Systems sales for the quarter were $3.29 billion, up 12%, from $2.93 billion a year ago. Information Systems & Global Services generated net sales of $3.37 billion, up 2%, compared to $3.3 billion in the preceding year. Net sales from Space Systems were $2.61 billion, higher than $2.03 billion in the prior year and increased by 28%. For the third quarter, the company had reported net sales of $11.056 billion, up from $10.577 billion in the year-ago quarter. Operating profit for the fourth quarter decreased to $1.24 billion from $1.35 billion in the year earlier. During the quarter, the company posted other non-operating income of $25 million, compared to an expense of $102 million in the preceding year. For the full year, net earnings were $3.02 billion or $7.78 per share, compared to $3.22 billion or $7.86 per share reported in the prior fiscal. Annual net sales increased 6% to $45.19 billion from $42.73 billion in the previous year. Bob Stevens, chairman and chief executive officer said, "The Corporation remains strong, healthy and well-positioned for future growth. As we move into a new decade, we will continue to meet our customers' most important challenges by offering the innovative products, superior services and strong performance that have made Lockheed Martin the world's foremost provider of global security solutions."
Looking ahead, the company now expects full-year 2010 earnings per share in a range of $7.15 - $7.35, up from the prior range of $7.05 - $7.25 per share. The company reaffirmed its full-year sales forecast of $46.25 billion to $47.25 billion. Analysts expect the company to earn $7.41 per share, on revenues of $46.92 billion for the fiscal. Among others in the industry, Northrop Grumman Corp. (NOC) is slated to announce its results for the fourth quarter on February 4. Street analysts anticipate earnings of $1.26 per share on revenues of $9 billion. LMT closed Wednesday's regular trading at $77.13 on the NYSE. In the past 52 weeks, the shares have been trading in a range of $57.41-$87.06.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.