Actionable news
All posts from Actionable news
Actionable news in LMT: LOCKHEED MARTIN Corp,

Aging equipment, global threats lift Lockheed outlook

Lockheed Martin, the nation's largest defense contractor, is seeing an upbeat outlook abroad for its defense systems amid rising global threats and the need for allies to replace aging equipment.

"The threats are not diminishing; they are increasing and so the defensive systems that we can provide are what we hear from countries around the world that they want," Lockheed Chairwoman and CEO Marillyn Hewson said during the company's third-quarter earnings call Tuesday.

The Bethesda, Maryland-based company said it is seeing increased demand for equipment ranging from the C-130J cargo aircraft in France and Germany to Blackhawk helicopters in Poland, to missile defense systems in the Asia-Pacific, Europe and Middle East theaters. Also, Lockheed is seeing progress on its F-35 Joint Strike Fighter program both domestically and internationally.

Lockheed indicated that aging military hardware from foreign allies also is helping to drive sales growth.

"The aging of equipment in allied countries, coupled with an expanding level of global security needs, are creating significant demand for our portfolio of products in multiple regions around the world," said Hewson.

Lockheed previously had a stated goal for 25 percent of its total revenue to come from international customers, but the company now expects to reach "at least 30 percent" in the next few years, Hewson said. She added, the new goal comes "as our international portfolio is growing at faster rate than the [Department of Defense] budget."

Overall, Hewson said the biggest growth area for the company remains the F-35 followed by missile defense.

"We've seen a lot of demand expanding from missile defense in the Asia-Pacific and the Middle East as well as in Europe," the CEO said.

Lockheed indicated that about 30 percent of its backlog is international today.

"We've got a lot of already booked business that will come in toward those international sales," said Hewson."So I...