BETHESDA, Md. (AP) — Defense giant Lockheed Martin Corp. posted a smaller loss for the fourth quarter Friday but reduced its outlook for the coming year.

Lockheed lost $347 million, or 77 cents per share, for the final three months of 2002. That compares with a loss of $1.5 billion, or $3.49 per share, in the year-earlier quarter, when the company took a $1.3 billion charge related to the sale of its telecommunications division.

Sales rose 6 percent to $7.78 billion from $7.33 billion in the fourth quarter of 2001.

Excluding one-time charges, including a $504 million writedown of telecommunications investments, the company would have earned $380 million, or 85 cents per share in the fourth quarter. That was 4 cents better than the 81 cents per share expected by analysts surveyed by Thomson First Call.

Sales for 2003 are expected to be between 8 percent and 12 percent above 2002 sales, Lockheed said. That would put them ahead of analysts estimate of $28 billion.

View Comments

But, profits won't keep pace. Lockheed said Friday it expects earnings per share to be between $2.15 and $2.20, including a 75 cents per share charge for pensions and other costs. The current consensus estimate of analysts surveyed by Thomson First Call is for earnings of $2.54.

Lockheed warned in December that its results for 2003, then expected to come in at $2.86, would fall short. The company at that time predicted annual earnings of between $2.75 and $2.85 per share.

For all of 2002, the company posted a net profit of $500 million, or $1.11 per share, compared with a net loss of $1.0 billion, or $2.42 per share for 2001. Excluding one-time items, the company would have earned $2.58 per share in 2002, 3 cents better than the Thomson First Call estimate.

Shares of Lockheed fell $1.38 to close Friday at $50.90 per share on the New York Stock Exchange.

Join the Conversation
Looking for comments?
Find comments in their new home! Click the buttons at the top or within the article to view them — or use the button below for quick access.