Market Overview

Lockheed Issues Sikorsky Warning

Share:

Shares of Lockheed Martin Corporation (NYSE: LMT) were trading higher by nearly 1 percent Thursday morning despite the company issuing a warning in a regulatory filing relating to its newly acquired Sikorsky Aircraft acquisition.

Lockheed Martin acquired the Sikorsky Aircraft business from United Technologies Corporation (NYSE: UTX) last year for $9.0 billion.

Lockheed Martin cautioned investors in its 10-K that the Sikorsky business "may under-perform relative to our expectations" and that the company's financial results could differ from its expectations.

"The integration process is complex, costly and time-consuming and we may not be able to capture anticipated synergies, tax benefits, cost savings, and business opportunities in the time frame anticipated, or at all," Lockheed stated.

Lockheed also cited oil and gas trends and the global economic condition in diminishing demand for its products. In addition, the U.S. Department of Defense expressed concerns over consolidation in the defense sector and any changes in policy "could have adverse impacts on our business, including our success in future contract pursuits."

Posted-In: Defense Companies Defense Contractors Department of Defense Lockheed Martin Sikorsky AircraftNews Guidance Legal

 

Related Articles (LMT + UTX)

View Comments and Join the Discussion!
Need corporate guidance data?
Click here to see licensing options.
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Target's Analyst Day Is Almost Here: What To Know

Follow-Up Rally? Stocks Look to Build On Wednesday's Late Gains