Lockheed Earnings Up 14% on 22% Increase in Sales

Lockheed Corp. earned $102 million on sales of $2.5 billion in the third quarter, a 14.6% increase in profits and a 22% increase on sales, the Burbank-based firm reported.

Lockheed Chairman Roy Anderson attributed the profit increase to higher sales, but he noted that operating margins were hurt by increased research and development spending, lower margins on some foreign service contracts and cost increases on certain tactical systems programs.

Lockheed sales have been growing due to several large defense programs, including the C-5 cargo aircraft, the Trident missile program, a major secret aircraft program and the Milstar satellite program. The firm said it has added 5,200 employees since the end of last year.