Lockheed Expects Up to $2 Billion in Excess Cash

Lockheed Corp. remains strong despite defense cutbacks and expects to generate $1 billion to $2 billion in excess cash between now and 1996, Chairman Daniel M. Tellep said Wednesday.

Tellep declined to predict how the aerospace concern would use the cash but said it likely would not be used to pare Lockheed’s debt--$1.7 billion--or make a major acquisition. Plowing the funds back into operations or raising the dividend are two other options.

In a meeting with reporters, Tellep also said “we don’t feel uncomfortable” with analysts’ estimates that Lockheed will earn $4.70 to $4.80 a share this year and $5.60 to $5.70 in 1992.

Tellep said that despite continued cutbacks in certain areas of defense spending, outlays for Lockheed’s eight major programs remain strong. Those programs include the F-22 advanced fighter jet and the Trident missile.

On another subject, Tellep said Lockheed “is on the verge” of selling initial parcels of its Burbank property. The company has transferred or closed most of its Burbank operations in recent months under a restructuring.

Lockheed expects to receive $200 million for the land, but will only “break even on the whole transaction” because of costs related to cleaning up toxics and other expenses, Tellep said.