Lockheed Martin's profits up, annual forecast raised again

Lockheed Martin Corp.'s aircraft division, which makes the F-16 fighter, posted slower sales in the second quarter.

Lockheed Martin Corp.'s profits rose 13 percent in the second quarter, prompting the federal contractor to increase its annual earnings forecast.

Bethesda, Md.-based Lockheed Martin (NYSE: LMT) reported a net income of $882 million, or $2.15 per diluted share, compared to $778 million, or $1.82 per diluted share, in the year ago quarter. Sales rose 3.6 percent to $11 billion.

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Results include a one-time gain of $56 million for reversing reserves no longer needed after settling a dispute over land sales with the U.S. government.

Sales and operating profits increased at three of four Lockheed Martin divisions. Only aircraft saw a decline due to slowing sales of the F-16 fighter.

Lockheed Martin now expects to post diluted earnings per share in 2008 of between $7.45 to $7.60. It is the second earnings forecast increase this year. In April, the company boosted its profit estimate to between $7.15 and $7.35. In January it had forecast diluted earnings per share of between $7.05 and $7.25.

Sandia Corp, a Lockheed Martin company, manages Sandia National Laboratories in Albuquerque for the U.S. Department of Energy's National Nuclear Security Administration. Lockheed also has other business operations in New Mexico.