Lockheed profits hit by one-off redundancy charge

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This story is sourced from Flight International
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Profits at Lockheed Martin in the second quarter were hit by a $97 million charge relating to lay-offs in its space and aeronautics divisions, taking the figure to $742 million, slightly up against the same period a year earlier.

Revenue stood at $11.5 billion for the quarter, compared with $11.2 billion in the second quarter of 2010.

The company's aeronautics division recorded sales of $3.4 billion and generated an operating profit of $400 million, compared with second-quarter 2010 figures of $3.1 billion and $370 million respectively.

The increase in sales was primarily due to additional volumes on the LRIP contracts for the F-35, plus higher volumes on the C-5 Galaxy and C-130J programmes and additional support work on the F-16.

"These increases partially were offset by lower volume of approximately $180 million on the F-22 programme, as production continues to wind down with final deliveries expected to be completed in 2012," the company said.