(Reuters) – U.S. arms maker Lockheed Martin reported a nearly 14% rise in first-quarter sales on Tuesday, as simmering geopolitical tensions prompt some countries to increase defense spending, boosting demand for new weapons.
Sales of its missiles and fire control units jumped 25.3 percent to nearly $3 billion, driven by strong demand for high-mobility artillery rocket systems (HIMARS) and high-mobility rocket systems. Guided Multiple Launch Vehicles (GMLRS), key weapons used by Ukraine in its conflict with Russia.
Sales at the aerospace business, the group’s largest unit making F-35 fighter jets, rose 9.2 percent to $6.85 billion.
“These first quarter results reinforce our confidence in our ability to achieve the full-year financial expectations we set in January,” Lockheed CEO Jim Taiclet said in a statement.
The missile maker reaffirmed its full-year outlook, forecasting net revenue of $68.5 billion to $70 billion and earnings of $25.65 to $26.35 per share.
Quarterly net sales reached $17.2 billion, up from $15.13 billion reported last year.
Lockheed’s profits are considered a bellwether for the arms industry. Northrop Grumman and General Dynamics are expected to report quarterly results later this week.
However, net income for the quarter ended March 31 fell to $1.55 billion, or $6.39 per share, from $1.69 billion, or $6.61 per share, a year earlier. , due to higher costs related to labor and supply chain issues.
Last week, the U.S. Missile Defense Agency announced that Lockheed had won a $17 billion contract to develop the next generation of interceptors to defend the United States against an intercontinental ballistic missile attack.
(Reporting by Pratyush Thakur and Shivansh Tiwary in Bangalore; Editing by Anil D’Silva)
