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Lockheed Martin Corp said on Tuesday third-quarter profit rose a better-than-expected 39 percent as the No 1 US defence contractor boosted sales of electronic systems, government satellites and deliveries of its C-130J transport planes.

But Lockheed, which makes fighter jets, cargo planes, Patriot missiles and sells a range of technology services, forecast 2006 profit toward the lower end of Wall Street forecasts, sending its shares slightly lower.

Sales of such systems boosted third-quarter profit, as the Bethesda, Maryland-based company reported profit of $427 million, or 96 cents per share, for the quarter. That compares with $307 million, or 69 cents per share, last year.

Revenue rose 9 percent to $9.2 billion.

Earnings beat analysts' average forecast of 90 cents per share, but revenue fell a little short of Wall Street's forecast of $9.38 billion, according to Reuters Estimates.

Looking forward, Lockheed forecast 2006 earnings of $4.00 to $4.25 per share, at the lower end of analysts' forecasts, which average out at $4.21 per share. For the first time next year, Lockheed's results will include the cost of stock options, the company said.

The company forecast 2006 revenue of $38 billion to $39.5 billion, in line with analysts' forecast of $39.5 billion.

Lockheed forecast full-year revenue of $37 billion to $37.5 billion, a touch shy of analysts' average forecast of $37.7 billion.

Copyright Reuters, 2005


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