Lockheed Profits Rise in Quarter, Full Year

Lockheed, in an earnings report Monday, credited continuing sales increases in its defense programs for 17% increases in both fourth-quarter and full-year 1985 profits.

The Burbank-based aerospace firm said profits in the quarter ended Dec. 29 rose to $128 million from $109 million in the comparable 1984 period. Revenue rose 7.5% to $2.73 billion from $2.54 billion.

For the full year, earnings rose to $401 million--the firm’s fourth straight annual profit record--from $344 million in 1984. Revenue rose 18% to $9.54 billion from $8.11 billion.

Chairman and Chief Executive Lawrence O. Kitchen said the improved earnings resulted from increased sales, which produced higher program profits. He noted, however, that operating profit margins in 1985 were slightly lower than those of 1984.

Lockheed’s sales have been growing due to increased orders in several large defense programs, including the Trident missile, Milstar satellite and the secret “stealth” jet fighter program. But margins have been pressured by increased research and development spending and other factors.

Lockheed said its funded backlog at the end of 1985 was $9 billion, compared to $9.4 billion the previous year. Total backlog at year-end was $17.9 billion, including orders valued at $8.9 billion for which funds have not been allocated. Total backlog at year-end 1984 was $22.8 billion, including $13.4 billion of unfunded orders.

The firm said it added 6,500 employees during 1985, raising total employment at year-end to 87,800.