New Contracts Send Lockheed’s Income Up 3%

Lockheed Martin Corp. on Tuesday said second-quarter net income rose 3% on increased information systems and aeronautics contracts and a drop in its tax rate.

The Bethesda, Md.-based military contractor, which plans to buy Los Angeles-based rival Northrop Grumman Corp. for $11.6 billion, said net income rose to $308 million, or $1.59 a share, from $299 million, or $1.50, in the year-ago quarter.

Lockheed Martin reports fully diluted earnings per share, which include its shares outstanding plus the number of common shares its convertible securities equal.

On that basis, the company’s earnings per share rose to $1.40 from $1.33, equaling the estimate of analysts. In midafternoon trading, Lockheed Martin’s shares rose 38 cents to close at $101.75 on the New York Stock Exchange.

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PepsiCo Inc.’s second-quarter earnings rose 7%, matching analysts’ forecasts, amid higher profit from its snacks and restaurants.

The maker of Pepsi-Cola and Lay’s chips said profit from operations rose to $624 million, or 40 cents a share, from $583 million, or 36 cents, a year earlier. That matched analysts’ expectations of 37 cents, excluding a gain of about 3 cents a share from sales of restaurants.

Profit at Pepsi’s restaurant business rose a better-than-expected 8%, and its international beverage unit posted its first profit in a year. The company plans to spin off its restaurant business, to be called Tricon Global Restaurants Inc., later this year.

In the most recent quarter, a net gain of $32 million, or 2 cents a share, on the sale of its food service unit and several restructuring charges resulted in net income of $656 million, or 42 cents.

At a Glance:

UAL Corp. and Northwest Airlines Corp. reported second-quarter profits that exceeded analysts’ expectations, as rising traffic offset a renewed federal tax on ticket prices.

UAL, the parent of United Airlines, said its profit rose 12% to $376 million, or $2.82 a fully distributed share, from $337 million, or $2.52, a year earlier. The earnings exceeded average expectations of $2.71 a share.

Northwest posted net income of $136.2 million, or $1.26 a share, down from $202.8 million, or $1.90, a year ago. The earnings exceeded expectations of $1.08 a share.

Texaco Inc. said second-quarter profit fell 5.4%, though it beat analysts’ estimates because of stronger-than-expected returns from refining and fuel sales outside the U.S. Profit after a one-time gain and loss fell to $440 million, or $1.64 a share, from $465 million, or $1.73, in the year-ago period.

Amoco Corp. reported a 5% increase in second-quarter earnings of $622 million, or $1.26 a share, from $600 million, or $1.20, in the year-ago quarter.

Caterpillar Inc.’s second-quarter net income rose 16%, topping expectations, to $435 million, or $1.15 a share, up from $374 million, or a split-adjusted 97 cents a share, in the year-earlier period.

Monsanto Co. said second-quarter earnings rose 8.5% before charges to $396 million, or 66 cents a share, from $365 million, or 62 cents, a year ago.

Allstate Corp.’s second-quarter earnings rose 19%, excluding gains from investment sales and charges, to $575 million, or $1.32 a share, from $483 million, or $1.08.

Bell Atlantic Corp. said second-quarter profit rose 11% before a charge to $513.9 million, or $1.17 a share, from $463.7 million, or $1.05.

Nynex Corp. said second-quarter profit rose 6% to $380.5 million, or 86 cents per share, from $358 million, or 82 cents.

CSX Corp. said its second-quarter earnings fell 3% because of its costly bidding for Conrail, to $227 million, or $1.04 a share, in the three months ended June 27, from $234 million, or $1.11 a share.

Burlington Northern Santa Fe Corp. said net income rose 11% to $235 million, or $1.50 a share, from $211 million, or $1.35.

Comcast Corp. reported second-quarter net income from continuing operations of $9.1 million, or 18 cents per share, compared with $8.3 million, or 17 cents, in the year-ago period. (Comcast’s earnings were incorrectly listed Tuesday.)

Freeport-McMoRan Copper & Gold Inc. said second-quarter earnings more than doubled from a year ago, rising to $69.8 million, or 35 cents a share, from $29.0 million, or 15 cents.

ITT Industries Inc. said second-quarter profit rose 22% to $82.6 million, or 68 cents per fully diluted share, from $67.7 million, or 56 cents, in the year-ago period.

Computer Associates International Inc. said fiscal first-quarter earnings rose 30% to $155.8 million, or 42 cents a share, from $119.8 million, or 32 cents.

Tandy Corp.’s second-quarter profit rose 40% to $35.3 million, or 62 cents a share, from $25.2 million, or 39 cents, in the year-ago period. Per-share earnings in both periods reflected the payment of preferred dividends.

Goodyear Tire & Rubber Co.’s second-quarter profit rose 2.3% to $192.2 million, or $1.23 per share, up from $187.9 million, or $1.22 per share, a year earlier.

Tenneco Inc. said second-quarter profit, excluding shipbuilding and gas pipeline units that were spun off and sold, rose to $104 million, or 61 cents a share, from $88 million, or 52 cents, in the year-ago period.

Praxair Inc. said second-quarter profit rose 32% to $107 million, or 65 cents a share, compared with $81 million, or 50 cents.

Waste Management Inc. reported second-quarter profit of $180 million, or 41 cents a share, down from $223 million, or 44 cents a share, in the same period a year ago.

Eastman Chemical Co. said its second-quarter profit fell 20% to $90 million, or $1.14 a share, from $112 million, or $1.41, in the year-ago quarter.

* MORE EARNINGS: D2, D4