Lockheed sees material effect of budget cuts on sales, earnings
Lockheed Martin Corporation : Lockheed sees material effect of budget cuts on sales, earnings
02/28/2013| 06:16pm US/Eastern
WASHINGTON, Feb 28 (Reuters - Lockheed Martin Corp, the Pentagon's largest supplier, on Thursday said its programs could be materially reduced, delayed or canceled if Congress does not avert across-the-board budget cuts due to take effect Friday, which would drive sales and earnings lower than projected.
If the reductions do take effect, Lockheed said its 2013 sales would drop more than the current outlook, which forecast a decline in the mid single-digit percentage range on the assumption that the automatic budget cuts would be averted.
Earnings and cash flow would follow a similar pattern, the company said in its annual report filed Thursday with the U.S. Securities and Exchange Commission. It said financial results in future years could also be materially affected.
Lockheed said 82 percent of its net revenues of $47.2 billion came from U.S. government customers in 2012, including 61 percent from the U.S. Department of Defense. The company reported earnings per share of $8.48 in 2012, up from $7.94 a year earlier.
Lockheed shares closed 33 cents lower at $88.00 on the New York Stock Exchange