Lockheed CEO Hewson warns of potential order impact without budget fix

Meantime, Hewson was asked about scenarios in 2018 given the murkiness of federal spending in addition to said Lockheed — maker of the F-35 advanced stealth fighter jet — still has “quite a few programs” that will remain “well supported” by both the House in addition to Senate versions of the NDAA.

“Even with the CR, we are not going to see an immediate impact,” she insisted. “What This specific affects is usually if This specific extends inside the next year,” although she added she’s “actually feeling optimistic that will This specific’s not going to do that will.”

As Hewson sees This specific, Lockheed also features a growing international business so This specific’s not entirely dependent on Pentagon contracts.

Earlier This specific month, the U.S. approved a $15 billion deal for Lockheed Martin to sell its THAAD missile defense shield system to Saudi Arabia. The same Terminal High Altitude Area Defense missile launch system is usually being utilized in South Korea to defend against the missile threat coming from nuclear-armed North Korea.

Last year, about 27 percent of Lockheed’s sales were to international customers. “We are not totally reliant on the U.S. government budget for our growth going forward,” she said.

The Lockheed executive added that will the Bethesda, Maryland-based company’s defense portfolio remains strong in addition to This specific is usually “continuing to win business.”

In July, the Pentagon announced a $5.6 billion order for the 11th batch of the advanced fighter aircraft. The F-35 Joint Strike Fighter has made Lockheed’s Aeronautics segment its largest segment in revenue.

inside the third quarter, the Aeronautics segment posted revenue of $4.7 billion, an increase of $583 million, or 14 percent, compared that has a year ago. The company said the rise was primarily due to higher net sales of about $540 million for the F-35 program.

Lockheed has previously said This specific expects international orders for the F-35 will reach about 50 percent of all the fighter jet’s orders inside the next a few years. Besides selling to the U.S. military, the fifth-generation fighter has customers coming from nine additional countries.

“We have just won inside the past quarter, in addition to of course the F-35 continues to grow in addition to be well supported,” said Hewson. “I feel pretty bullish about our portfolio in addition to where we are going even if we were to face additional budget caps.”

Overall, Lockheed’s financial results for the third quarter were a miss in terms of total revenue in addition to earnings per share. The company also produced a preliminary forecast for 2018 that will some viewed as mediocre.

On the earnings miss, Lockheed’s stock closed down more than 2 percent Tuesday. The stock remains up about 25 percent This specific year.

EPS coming from continuing operations inside the third quarter came in at $3.24 per share, below Street consensus of $3.26, according to Thomson Reuters. Total revenue was $12.2 billion, which is usually up 5 percent coming from a year ago nevertheless fell short of the $12.81 billion projected by industry analysts.

As for the outlook for 2018, Lockheed sees sales growth of about 2 percent, nevertheless that will’s at the lower end of Street estimates.

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