Lockheed 4Q Earnings Fall 66 Pct.
BETHESDA, Md. (AP) _ Lockheed Martin’s fourth-quarter earnings dropped 66 percent, the defense contractor reported Thursday, blaming a one-time expense from a subsidiary shutdown and weaker space and information technology sales.
Net earnings were $125 million, or 33 cents a share, compared with $371 million, or 91 cents a share for the fourth quarter of 1997. Revenues fell 9 percent to $7.18 billion from $7.88 billion.
Lockheed’s earnings were reduced by expenses of $183 million related to the shutdown of its money-losing subsidiary CalComp Technology, which makes high-end computer printers.
The company had warned analysts in December that its earnings would drop, citing expenses associated with CalComp and weaker space-related and information technology sales.
Not counting the one-time expenses, Lockheed’s quarterly earnings fell 15 percent to $308 million, or 81 cents a share, from $363 million, or 89 cents a share. The earnings were in line with Wall Street expectations.
Lockheed also forecast that a cost-cutting initiative it started last year could save the company as much as $3 billion per year by 2001. The company’s stock initially rose as much as $1.93 3/4 but later gave up those gains to move $1.25 lower to close at $35.93 3/4 in trading on the New York Stock Exchange.
Vance Coffman, chairman and chief executive officer of Lockheed Martin, said delays of commercial space launches and military aircraft deliveries from 1998 into 1999 hurt earnings.
``With the corrective actions taken and our productivity initiatives, we anticipate improved operating and financial performance in 1999,″ Coffman said.
For the entire year, net earnings were $1 billion, or $2.63 per share, compared with $1.3 billion, or $3.04 per share, in 1997. Revenues for the year were $26.26 billion, down from $28.07 billion in 1997.