The
pandemic has crippled many companies' ability to send and
receive the parts and supplies they need to produce a wide range
of products, creating shortages, reducing inventories and
hammering profits.
Lockheed's poor outlook, just 66-days from year-end, came after
it reassessed its five-year business plan "given recent external
and programmatic events," Chief Executive Jim Taiclet said in
the earnings report that dashed hopes the United States's
largest arms maker could muscle its way through the pandemic.
The reassessment means "a slight reduction in revenue in 2022
and roughly flat to low-single-digit growth rates in both
revenue and segment operating profit over the next few years" as
Lockheed prioritizes researching next-generation weapons systems
like hypersonic weapons and returning cash to shareholders, the
CEO added.
Support for the defense industry could be on the way as
congressional committees are set to start their conference on
the Biden administration's 2022 defense policy bill that
outlines increased spending.
Lockheed, however, raised its earnings per share guidance for
2021 to $22.45, more than analyst estimates of $22.19, as
operating profits rose 6.6% versus same period last year.
The third quarter which ended on Sept. 26 showed sales at
Lockheed's largest unit, aeronautics - which makes the F-35
fighter jet, down 2% from a year earlier when the pandemic
locked down many parts of the defense industry's supply chain.
Through Sept. 26, the unit made 90 F-35 deliveries with 36
occurring in the third quarter. Lockheed aims to deliver 133 to
139 of the stealthy jets this year.
In 2022, Lockheed plans to deliver 151 to 153 of the fighter
aircraft.
Lockheed's third-quarter revenue was $16 billion, 6.6% below
analyst revenue estimate of $17.1 billion, Refinitiv data shows.
(Reporting by Mike Stone in Washington; Editing by Himani Sarkar)
[© 2021 Thomson Reuters. All rights
reserved.] Copyright 2021 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
![](column_spacer.png)
|
|