Lockheed Martin reports higher sales on strong defense demand

(Reuters) – US weapons maker Lockheed Martin on Tuesday reported a close to 14% rise in first-quarter gross sales, as simmering geopolitical tensions immediate some international locations to spice up their protection spending, driving demand for brand spanking new weapons.

Gross sales in its missiles and fireplace management unit jumped 25.3% to just about $3 billion, boosted by robust demand for top mobility artillery rocket system (HIMARS) and guided a number of launch rocket system (GMLRS), key weapons utilized by Ukraine in its battle with Russia.

Gross sales in its aeronautics enterprise, the corporate’s greatest unit that makes the F-35 fighter jets, rose 9.2% to $6.85 billion.

“These first quarter outcomes reinforce our confidence in our potential to realize the total yr monetary expectations we set in January,” Lockheed CEO Jim Taiclet mentioned in an announcement.

The missile maker reaffirmed its full-year outlook, projecting web gross sales of $68.5 billion to $70 billion and revenue between $25.65 and $26.35 per share.

Quarterly web gross sales rose to $17.2 billion from $15.13 billion reported final yr.

Skrydstrup airbase officially receive four F-35 combat aircraft on October 1, 2023. The aircrafts are officially handed over from Lockheed Martin to the Ministry of Defence's Material and Procurement Agency and from them on to the Armed Forces and the Air Force. Denmark has bought a total of 27 F-35 fighter jets from the manufacturer Lockheed Martin. Ritzau Scanpix/Bo Amstrup via REUTERS    ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. DENMARK OUT. NO COMMERCIAL OR EDITORIAL SALES IN DENMARK.

4 F-35 fight plane delivered by Lockheed Martin to Denmark’s Ministry of Defence in October. Ritzau Scanpix/Bo Amstrup by way of REUTERS (by way of REUTERS / Reuters)

Lockheed’s earnings are seen as a bellwether for the arms sector. Northrop Grumman and Common Dynamics are as a result of report quarterly outcomes later this week.

Nevertheless, web earnings for the quarter ended March 31 fell to $1.55 billion, or $6.39 per share, in contrast with $1.69 billion, or $6.61 per share, from a yr earlier, as a result of increased prices stemming from labor and provide chain challenges.

Final week, the U.S. Missile Protection Company mentioned Lockheed gained a $17 billion contract to develop the subsequent era of interceptors to defend the USA in opposition to an intercontinental ballistic missile assault.

(Reporting by Pratyush Thakur and Shivansh Tiwary in Bengaluru; Enhancing by Anil D’Silva)

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