Lockheed Profit Sinks 37% on Fewer Launches, Lower Sales
Lockheed Martin Corp. said Thursday that its third-quarter profit fell 37% on fewer rocket launches and lower sales of military aircraft, but the performance exceeded analysts’ forecasts.
The world’s largest defense contractor said profit from operations declined to $115 million, or 28 cents a share, from $183 million, or 48 cents, in the year-earlier quarter, as sales fell 3.2% to $5.96 billion.
Lockheed launched fewer government and commercial satellites in the quarter, while sales of its F-16 fighter aircraft and C-130J military transport planes declined.
Lockheed was expected to earn 24 cents a share, the average estimate of analysts polled by First Call/Thomson Financial. The company said it agrees with analysts’ profit forecasts for the full year of $1.05 a share and $1.25 a share in 2001.
The lower results come as the company sells assets to pare its almost $12 billion in debt that was used to finance a spate of acquisitions in the 1990s.
Efforts to overhaul operations, led by Chief Financial Officer Robert Stevens, are starting to pay off, analysts said. Lockheed’s debt-to-capital ratio, used to measure whether a company’s debt is in proper proportion to working capital, was 58.3% last month, the lowest level since 1996.
Shares of Bethesda, Md.-based Lockheed rose 18 cents to close at $35.03 on the New York Stock Exchange.
At a Glance
Other earnings, excluding one-time gains or charges unless noted, include:
TECHNOLOGY:
* Buy.com Inc. said its loss from operations narrowed to $21.4 million, or 16 cents a share, from $23.9 million, or 27 cents, a year ago, on a 20% rise in sales to $190.2 million. Buy.com said it benefited from increasing prices on some products. Analysts expected a loss of 18 cents.
* Electronic Data Systems Corp.’s profit rose 8.3% to $278.7 million, or 59 cents a share, a penny better than expectations. Sales were up less than 1% to $4.75 billion, missing the $4.92 billion that analysts had anticipated.
* TheGlobe.com posted a wider loss for its third quarter, blaming the weak online advertising market, and said it plans to slash jobs and sell two businesses as a result. TheGlobe.com reported an operating loss of $10.3 million, or 33 cents a share, contrasted with a loss of $7.8 million, or 29 cents, a year ago, as revenue rose 37% to $6.7 million. The company said it will cut 51 employees, or 41% of its work force. It also has agreed to sell two British game sites for $6 million to Kaleidoscope Network, along with a 25% stake in Kaleidoscope.
* Ingram Micro Inc.’s third-quarter profit more than doubled to $38.9 million, or 26 cents a share, from $15.8 million, or 11 cents a year ago, as sales rose 13% to $7.56 billion. Analysts expected 25 cents.
* Inktomi Corp. posted a profit of $8.8 million, or 7 cents a share, in its fiscal fourth quarter, beating the average forecast of 5 cents, contrasted with a loss of $6.1 million, or 6 cents a share, a year ago. Sales nearly tripled to $78.6 million from $27.1 million, exceeding analysts’ expectations of $71 million.
* MicroStrategy Inc. reported a third-quarter loss of $29.9 million, or 37 cents a share, a far better performance than the 53-cent average loss expected by analysts. In the year-ago quarter, the company had a loss of $12.8 million, or 17 cents. Revenue jumped 84% to $64.9 million.
* TheStreet.com Inc. said its third-quarter loss widened to $8.9 million, or 34 cents a share, from $7.2 million, or 29 cents, a year ago, but the results beat estimates as it cut costs to offset difficulties in driving traffic to the online financial company’s network. Analysts had anticipated a loss of 37 cents. Revenue rose 58% to $6.2 million, compared with revenue that more than doubled in the previous two quarters.
OTHER INDUSTRIES:
* American International Group Inc. said third-quarter earnings rose 15% to $1.41 billion, or 61 cents a share, matching estimates, driven by strong global sales of life insurance and rising property-casualty insurance rates in the U.S. Revenue rose 16% to $11.14 billion.
* Biotechnology giant Amgen Inc. said third-quarter profit rose 16% to $314 million, or 29 cents a share, a penny better than estimates, on higher sales of its top-selling drug, the Epogen anemia treatment. Amgen shares fell in after-hours trading as the company said sales of Epogen and its second-biggest seller, Neupogen, would be weaker than expected for the full year. Amgen shares dropped as low as $60.50, after closing at $68.50 in regular Nasdaq trading. Amgen was expected to earn 28 cents. Revenue rose 12% to $950 million from $847 million.
* AutoNation Inc.’s profit from continuing operations fell 6.7% in its third quarter to $86.4 million, or 24 cents a share, as expected. Sales fell 2.2% to $5.34 billion as used-car sales dropped 16%.
* Avaya Inc., the office networking unit spun off from Lucent Technologies Inc. last month, said its fiscal fourth-quarter profit dropped 56% to $20 million, or 7 cents a share, as sales fell 6.5% to $2.02 billion.
* B.F. Goodrich Co.’s profit edged up 2.7% in its third quarter to $85.2 million, or 82 cents a share, on a 3.5% sales gain to $1.38 billion. Rising raw material costs, unfavorable currency translations and a drop in demand from the automotive industry hurt profit, notably in specialty chemicals and industrial products.
* Calabasas-based restaurant operator Cheesecake Factory said third-quarter net income jumped 47% to $8.5 million, or 25 cents a share, as revenue rose 12% to $111.3 million.
* Calpine Corp. said third-quarter profit more than tripled to $147.1 million, or $1.09 a share, from $42.9 million, or 39 cents, a year earlier, as new power plants and acquisitions boosted electricity sales. The results far exceeded the 79 cents a share analysts had expected as the company benefited from higher electricity prices in California. Revenue more than doubled to $678.9 million, from $253 million. The company also announced a 2-for-1 stock split.
* Del Monte Foods Co.’s profit dropped 44% to $4 million, or 8 cents a share, a penny better than forecasts, as sales fell 7% to $310.8 million. The company said it expects fiscal 2001 revenue growth of 4% to 6%, with earnings roughly equal to fiscal 2000’s $1.01 a share.
* Dow Chemical Co.’s third-quarter earnings rose 2.5% to $328 million, or 48 cents a share, beating analysts’ expectations of 44 cents, despite higher raw material and energy costs. Sales grew 17% to $5.51 billion.
* Imperial Bancorp of Los Angeles reported third-quarter net income grew 56% to $23.2 million, or 51 cents a share. Net interest income rose 31% to $89.5 million.
* Phillips Petroleum Co.’s third-quarter profit doubled to $505 million, or $1.96 a share, beating average expectations of $1.92, as higher oil and natural gas prices more than offset lower fuel and chemical earnings. Sales grew 37% to $5.2 billion.
* Power-One Inc., a maker of power supplies for electronic equipment, reported that third-quarter profit more than tripled on sales to telecommunications companies and Internet service providers. The Camarillo-based company said operating earnings rose to $18.7 million, or 24 cents a share, from $6.21 million, or 10 cents, a year earlier. Analysts had expected 23 cents. Sales more than doubled to $150 million.
* Quorum Health Group Inc., the biggest U.S. manager of nonprofit hospitals, said its fiscal first-quarter profit rose 25% to $14.1 million, or 18 cents a share, a penny better than analysts’ forecasts, boosted by increased admissions. The company said it was able to raise prices it charges managed-care insurers and reduce its bad debt, though expenses for labor and supplies rose. Revenue rose 5.3% to $454 million.
* Reebok International Ltd. posted a 17% jump in profit to $32.3 million, or 56 cents a share, beating forecasts of 51 cents, as the maker of sneakers and athletic clothing cut costs. Sales fell slightly to $787.8 million from $793.9 million.
* 21st Century Insurance Group, based in Woodland Hills, said third-quarter net income dropped 86% to $2.6 million, or 3 cents a share, on an 11% rise in revenue to $220.1 million.
* Williams Cos. said third-quarter profit more than quadrupled to $121.1 million, or 27 cents a share, well beyond analysts’ average estimate of 16 cents, as gas prices soared and returns from its electricity trading business rose. The natural gas pipeline operator had earned $28.1 million, or 6 cents a share, a year ago. Revenue rose 31% to $2.88 billion.
