Aerospace Firms Report Mixed Quarterly Profits

Lockheed Corp., citing gains from its newly acquired F-16 fighter-jet business, said Thursday that its third-quarter profit surged 36% from a year earlier on a 40% jump in sales.

Another major defense contractor, Raytheon Co., said its earnings rose 9%. But Teledyne Inc., a Los Angeles-based aerospace, electronics and consumer goods company, posted a 7% profit decline.

Lockheed, based in Calabasas, said net income in the quarter ended Sept. 26 rose to $117 million from $86 million a year earlier. Sales rose to $3.48 billion from $2.47 billion.

The company’s purchase of General Dynamics’ tactical aircraft group--led by the F-16 program--in February bolstered the results, as did cost-cutting in the face of reduced Pentagon spending, Lockheed said.

Lockheed’s higher profits also included a previously announced gain stemming from its settlement with the U.S. Navy of a dispute over the P-7A anti-submarine patrol aircraft. Lockheed had been developing the plane when the Navy canceled the program in 1990.

Teledyne, meanwhile, said its third-quarter profit slipped to $15.2 million from $16.3 million a year earlier. Its sales dropped 16%, to $598 million from $709 million.

The diversified company said the declines partly reflected reduced U.S. and foreign military spending and the slumping commercial aerospace market. The results also were lowered by charges related to a recently announced corporate restructuring, and to legal problems at some of Teledyne’s units.

Raytheon said its third-quarter earnings climbed to $171 million from $156 million. Its sales inched up to $2.22 billion from $2.21 billion. The Lexington, Mass.-based company said the gains were led by its government electronics, Beech airplane and major-appliance groups.