UK Markets open in 3 hrs 30 mins
  • NIKKEI 225

    29,665.42
    -174.29 (-0.58%)
     
  • HANG SENG

    24,221.54
    +122.40 (+0.51%)
     
  • CRUDE OIL

    70.51
    -0.05 (-0.07%)
     
  • GOLD FUTURES

    1,777.50
    -0.70 (-0.04%)
     
  • DOW

    33,919.84
    -50.63 (-0.15%)
     
  • BTC-GBP

    32,565.74
    -2,671.21 (-7.58%)
     
  • CMC Crypto 200

    1,047.85
    -15.99 (-1.50%)
     
  • Nasdaq

    14,746.40
    +32.49 (+0.22%)
     
  • ^FTAS

    4,029.01
    +42.11 (+1.06%)
     

Lockheed's classified development program loss will be future production program

  • Oops!
    Something went wrong.
    Please try again later.
·1-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

By Mike Stone

WASHINGTON (Reuters) - Lockheed Martin Corp told Wall Street analysts on Monday that it had a $225 million loss on a classified development program at its Aeronautics business unit, sending its shares down, but said the work will eventually lead to a production contract.

Lockheed's classified work has been growing as the U.S. government spends more on researching and developing next- generation weapons systems.

Lockheed raised its full-year earnings per share guidance as the U.S. weapons supplier's space business boosted revenue, but the $225 million loss caused the company to miss analysts' earning per share estimates.

Lockheed's largest unit, aeronautics - which makes the F-35 fighter jet, experienced "performance issues" on the classified development program during the quarter.

After this charge and a "deep dive" with the customer in May, Chief Financial Officer Ken Possenriede told analysts "roughly 40% of that cost has already occurred, and the other 60% is embedded in the new estimate to complete" the program.

Possenriede told Reuters in an interview that "this is going to cost more and take longer to build than we anticipated, and this is the development portion of this program, it'll then go into production and then there'll be other pieces of this thing that will make this a strong business case for us."

Lockheed shares were down 3% at $369.21 on Monday afternoon.

(Reporting by Mike Stone in Washington; Editing by Matthew Lewis)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting