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Lockheed Martin announced on Tuesday that his profit in the second quarter had dropped approximately 80 %, after the American defense giant recorded before tax losses of $ 1.6 billion, mainly linked to a classified program in its aeronautical segment.
The actions of the company fell 7.5 % in exchanges before placing on the market.
Net profit fell to $ 342 million, or $ 1.46 per share, compared to $ 1.64 billion, or $ 6.85 per share, a year earlier.
Lockheed said that the burden came from difficulties with a classified program in its aeronautical activity and certain international helicopter programs in its Sikorsky unit.
Companies in the Defense sector are faced with increasing cost pressures, inflation and disruption of the supply chain resulting in an increase in long -term expenses of long -term programs whose price was set several years ago.
Many of these contracts – often at a fixed price – were negotiated before the post -pandemic buzz on the costs of the workforce, materials and components, which forced companies such as Lockheed to absorb outbuildings.
In addition to the burden of $ 950 million on the classified program, Lockheed underwent a loss of $ 570 million on his work for the Canadian government concerning the acquisition of its maritime helicopters CH-148 Cyclone.
“The company is in talks with the client about a potential restructuring of certain contractual conditions and the expansion of the work of the work which would be beneficial for both parties,” said Lockheed about the program.
If these charges are excluded, the defense giant, however, recorded an adjusted profit of $ 7.29 per share, exceeding estimates of $ 6.44 per share, according to data compiled by LSEG.
“Overall, the company’s foundations remain solid and resistant,” said Director General Jim Taiclet in the press release on business results.
Lockheed also missed Wall Street estimates for the second quarter turnover, which amounted to $ 18.16 billion, while expectations were $ 18.57 billion.
