Helped by the divestiture of a non-core business unit, aerospace and defense contractor Lockheed Martin posted a big 15 percent boost in third-quarter net income despite a less than 1 percent increase in sales.
Company shares (LMT: NYSE) closed up more than 7% in trading on Oct. 25, to $249.26. The financial results were released just prior to the market’s opening, with the stock recently trading roughly midway in its 52-week range of $200.47-$266.93.
In August, the Bethesda, Md.-based company divested itself of a government IT unit — Information Systems & Global Solutions — in a realignment of operations to focus more intently on aerospace and defense.
“The corporation achieved a quarter of strong operational and financial results,” Lockheed chief Marillyn Hewson said. “Looking ahead to 2017, we are focused on providing innovative solutions to our customers, while executing on our realigned business portfolio to generate growth and value to shareholders.”
Net sales in Lockheed’s Space Systems unit climbed modestly to $2.28 billion for the three-month period ended Sept. 25. That compared with $2.21 billion in a similar period a year earlier.