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NurPhoto \/ Getty Images<\/p>\n
Lockheed Martin recognized $950 million in pre-tax losses tied to a classified aeronautics program <\/p>\n
Lockheed Martin (LMT) stock tumbled Tuesday as\u00a0the defense contractor reported $1.6 billion in losses across a range of programs and slashed its full-year profit forecast.<\/p>\n
Shares of Lockheed were down 8% in recent trading. The stock is down about 12% this year.<\/p>\n
A classified program in Lockheed’s aeronautics program that faced “design, integration, and test challenges” led to recognize $950 million in pre-tax losses, the company said. The company reported another $570 million losses on an international helicopter program. The losses, CEO Jim Chaiclet said, “are a necessary step as we continue to take action to improve program execution.”<\/p>\n
The company now expects full-year earnings per share of $21.70 to $22, down from a prior estimate of $27 to $27.30. Lockheed maintained its sales outlook of $73.75 billion to $74.75 billion, which is in line with the Visible Alpha analyst consensus.<\/p>\n
In the second quarter, Lockheed reported revenue of $18.16 billion, up less than 1% year-over-year and short of the analyst consensus.<\/p>\n
The company’s net income fell to $342 million, or $1.46 per share, from $1.6 billion, or $6.85 per share, largely due to the program losses.<\/p>\n