WASHINGTON (Reuters) – Lockheed Martin Corp (LMT.N: Quote, Profile, Research, Stock Buzz) and Raytheon Co (RTN.N: Quote, Profile, Research, Stock Buzz) warned on Thursday that U.S. defense budget cuts would eat into their sales this year, but they forecast very different effects on their bottom lines.
Lockheed, the Pentagon’s biggest supplier, said it could cut enough costs that earnings would not only grow but also would exceed expectations. Raytheon, on the other hand, said its profit would shrink as the arms maker gets squeezed by the end of high-margin programs and the start of new, low-margin ones.
WASHINGTON (Reuters) – Arms maker Raytheon Co (RTN.N: Quote, Profile, Research, Stock Buzz) on Thursday forecast a drop of up to 9 percent in adjusted earnings per share this year as it reported fourth-quarter earnings per share fell 7 percent on nearly unchanged sales.
Additional U.S. budget cuts could have a big impact on the U.S. military and the defense industry next year, but Raytheon said its international sales and focus on high-priority areas should help mitigate the effect.
WASHINGTON, Jan 24 (Reuters) – U.S. arms maker Raytheon Co
on Thursday forecast a drop of up to 9 percent in
adjusted earnings per share this year as it reported
fourth-quarter earnings per share fell 7 percent on nearly
Additional U.S. budget cuts could have a big impact on the
U.S. military and the defense industry next year, but Raytheon
said its international sales and focus on high-priority areas
should help mitigate the effect.
(Reuters) – Lockheed Martin Corp (LMT.N: Quote, Profile, Research, Stock Buzz), the Pentagon’s biggest supplier, forecast 2013 earnings growth above analysts’ estimates as it expects a record backlog and continued efforts to cut costs to overcome an anticipated weakening of sales.
Lockheed said on Thursday that earnings per share had dropped 19 percent to $1.73 in the fourth quarter from $2.14 a year earlier, reflecting a large noncash pension adjustment, higher income tax expenses and a charge for job cuts in its aeronautics division.
WASHINGTON (Reuters) – The U.S. National Transportation Safety Board is looking at issues raised by more than one whistleblower as it investigates battery failures that have grounded the global fleet of 50 Boeing Co (BA.N: Quote, Profile, Research, Stock Buzz) 787 Dreamliners for a week.
Michael Leon, one of the whistleblowers, said he spoke with an NTSB investigator this week and gave him extensive materials about his claim that he was fired around six years ago for raising safety concerns about Securaplane Technologies Inc., an Arizona company that makes chargers for the highly flammable lithium-ion batteries at the heart of the probe.
WASHINGTON (Reuters) – General Dynamics Corp (GD.N: Quote, Profile, Research, Stock Buzz) reported a $2.1 billion loss and lower-than-expected revenue for the 2012 fourth quarter as one-time charges and shrinking government orders hammered results at the weapons and aircraft maker.
The company’s new chief executive, Phebe Novakovic, told analysts she had worked with General Dynamics’ business units to develop more realistic operating plans and expected significant upside for future margins. But she said she was keeping her guidance for 2013 conservative for now.
TOKYO/WASHINGTON (Reuters) – Japanese regulators have joined their U.S. counterparts in all but ruling out overcharged batteries as the cause of recent fires on the Boeing Co (BA.N: Quote, Profile, Research, Stock Buzz) 787 Dreamliner, which has now been grounded for a week worldwide.
Meanwhile, as deliveries of the cutting-edge passenger jet back up with no end in sight, a key Chinese customer lamented the delays and said its growth plans were being hampered by its inability to get the planes on time.
WASHINGTON, Jan 23 (Reuters) – Weapons and aircraft maker
General Dynamics Corp reported a loss from continuing
operations and lower-than-expected revenue in the fourth quarter
of 2012, as declining demand and shrinking government orders
hammered the company’s results.
Its shares recovered a bit after falling nearly 5 percent in
early trading on Wednesday.
WASHINGTON (Reuters) – A key Senate committee will hold a hearing in coming weeks to examine U.S. aviation safety oversight and the Federal Aviation Administration’s decision to allow Boeing Co to use highly flammable lithium-ion batteries on board its new 787 Dreamliner, a congressional aide said on Tuesday.
U.S., Japanese and French authorities are investigating two separate cases in which lithium-ion batteries on board the new airliner failed. One of the batteries sparked a fire in a parked plane in Boston, while the other forced an emergency landing in Japan.
WASHINGTON (Reuters) – Whoever coined the term “to the victor goes the spoils” did not have President Barack Obama’s official inauguration party in mind.
They knocked on doors for him and helped him win re-election, but when Obama supporters put on their tuxedos and ball gowns to celebrate the start of his second term in office, they feasted on pretzels, peanuts and Cheez-its.