Profits for Lockheed Martin Crop exceeded the expectations and had a jump for about 47 percent according to a Tuesday report. This happened mostly thanks to the strong demand for missiles and fighter jets.
Lockheed Martin Corp is known for being the biggest weapons supplier for the Pentagon.
The huge profit rise for LMC helped the whole branch in the industry raise its profits as well, as Northrop Grumman Corp, General Dynamics Corp, and Raytheon Co shares went up for more than 2 percent.
Lockheed’s Missiles and Fire Control business who produce missile defenses like the Terminal High Altitude Area Defense (THAAD) was the unit that made the biggest profit for the corporation, as the unit was awarded a THAAD interceptor missile contract with a worth of $2.4 billion, with some of them being sent to Saudi Arabia, something that can boost the profit even more.
According to Reuters, Lockheed’s overall net sales for the quarter rose 23 percent to $14.34 billion. The company’s sales backlog grew to $133.5 billion, up 3 billion over the quarter. Lockheed shares were up 5.8 percent at $333.85 in early trading.
According to a statement in Congress from a Pentagon official in April, the United States plans to expand the sales of Lockheed-made F-35 fighter jets to five new countries (Romania, Poland, Greece, and others) as Russia is strengthening its military potential.
But the corporation also had some issues in Turkey, as some of the U.S. government actions prevented the sale of its products in Turkey, as Congress introduced several bipartisan resolutions targeting Turkey which call for President Trump to impose sanctions or to put a stop on the transfer of F-35 fighter aircraft.
The problems came when the Turkish government tried to purchase a Russian-made missile defense system, which made the United States try to stop Turkey from sitting on two chairs and stop the transfer of the F-35 program in Turkey.