Lockheed Raises Expectations on Earnings

Lockheed Martin Corp. said it expects to exceed diminished earnings estimates for this year with help from streamlining and exports of its F-16 fighter plane. The defense contractor forecast annual earnings of $1.05 a share. Last fall, as a series of rocket launch failures weakened its business, Lockheed had slashed earnings estimates for 2000 to $1 a share from $2.15. With the company’s $9-billion-plus in orders to make more than 200 F-16s for the United Arab Emirates, Israel, Greece and Egypt, Chief Executive Vance Coffman said, the fighter “has had a terrific run for new business.” Coffman also repeated previous remarks that the Defense Department may divide a $200-billion order for the Joint Strike Fighter between Lockheed and rival bidder Boeing Co. The order, for about 3,000 of the jet fighters now in development, is the biggest weapons program underway anywhere. The company later reiterated that Lockheed is sticking to its “winner-take-all” bid strategy toward getting the contract. Lockheed shares fell $1.44 to close at $24.13 on the NYSE.