Lockheed Martin Corp. reported a third-quarter net income of $571 million, or $1.57 per share, down from $797 million, or $2.07 per share, a year earlier.
Total boost in revenue was recorded at 6 percent, to $11.38 billion, but the total fall in profits is significant at 28 percent as the company paid mammoth amounts to its executives under the early-exit program.
The company paid a total of $178 million to its 600 executives who accepted to leave the company when it announced an early-exit program though its chief financial officer Bruce Tanner said the company expects to quickly recoup the costs.
Lockheed saw almost steady profits in all of its operating divisions during the last quarter with its electronics systems unit seeing the biggest surge in profits, to $425 million from $404 million in the same quarter last year.
Lockheed cut its full-year forecast for per-share earnings by 40 cents as it now expects to earn in a range of $6.75 to $6.95 per share, showing a dip from previous estimate of $7.15 to $7.35 per share.
The company is expecting a cut in spending in the federal information technology market but the CFO is confident that the company would see increased profits next year.
Lockheed sold its Enterprise Integration Group business unit to Veritas Capital for $815 million last week in an attempt to tone down Pentagon's concerns about conflicts of interest.
The company saw a dip of 57 cents in its shares, or around 0.8 percent, to trade at $69.47.
