American weapons maker Lockheed Martin reported third-quarter profit which it said was better than expected, attributable to higher sales in its aeronautics unit which makes the F-35 fighter jet, as the company raised its full-year earnings forecast.
The US defense sector has performed better compared with other industries amid a slump in demand due to the coronavirus pandemic, as the government has continued to purchase weapons while also providing support to defense contractors to pay the salaries of highly skilled workers.
Lockheed said deliveries of F-35 jets rose to 31 aircraft in the quarter ended Sept 27, which, the company reported was 28 jets a year earlier.
READ: Oil slides on COVID-19 resurgence and strong dollar
On an earnings conference call with analysts, management said the company plans to deliver 120 to 125 F-35s in 2020.
Earlier in the year, Lockheed warned of a delay in jet deliveries due to a shortage in its parts production as the coronavirus hampered it across the supply chain. Before the global pandemic hit, Lockheed forecast about 140 jet deliveries this year.
Leave a Comment