Profits at the aerospace and military contractors Lockheed Martin and Northrop Grumman climbed in the third quarter on strong sales of jet fighters, submarines and mail-sorting machines, the companies said yesterday.
Both companies expected further strong growth in 2007 based on Congressional military spending priorities.
Lockheed, based in Bethesda, Md., earned $629 million, or $1.46 a share, in the third quarter, compared with $427 million, or 96 cents a share, in the same period of 2005. Quarterly revenue rose 4 percent to $9.6 billion from $9.2 billion.
The most recent quarter’s results included $82 million in one-time gains from land sales and tax benefits and an $11 million charge on debt exchange expenses. The one-time events added $71 million, or 16 cents a share, to the third-quarter results.
The earnings surpassed the consensus of analysts surveyed by Thomson Financial, who expected the company to make $1.24 a share excluding the one-time gains.
Northrop Grumman, which is based in Los Angeles, reported that net income rose to $302 million, or 86 cents a share, from $293 million, or 81 cents a share, in the year-ago period.
The latest period included a charge of $112.5 million, or 20 cents a share, related to a proposed legal settlement with the Justice Department. It also included a loss of 1 cent a share from discontinued operations.
The results were in line with the expectations of analysts, who on average anticipated earnings of $1.07 a share, according to Thomson Financial. Analysts’ estimates typically exclude one-time charges.
Revenue increased 2 percent, to $7.43 billion, from $7.29 billion in the year-ago period.
Northrop Grumman, which builds ships, satellite systems and the Global Hawk surveillance plane, said it had offered to settle potential claims brought by the Justice Department and a classified government customer concerning microelectronic parts produced by TRW, which Northrop bought in 2002.
