Chemistry Board

Lockheed Martin Corp posted better-than-expected second-quarter net profit and raised its full-year forecast, but said it still faces challenges ahead with $500 billion in additional U.S. defense spending cuts due to start next year.

Top U.S. weapons maker Lockheed Martin, which receives more than 80% of its revenue from the U.S. government, expects U.S. defense spending to fall by about $55 billion next year if the cuts - to be spread out over 10 years - move ahead.

Chief Executive Bob Stevens said the company's solid second-quarter results reflected ongoing efforts to reduce overhead costs, cut the workforce and consolidate facilities in the face of lingering uncertainty about U.S. defense spending levels.

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