Lockheed may revise 2014 outlook if U.S. budget deal passes

U.S. weapons maker Lockheed Martin Corp (LMT) may revise upward its financial outlook for 2014 if Congress passes a two-year budget deal that would blunt the effect of mandatory budget cuts, Marillyn Hewson, the company’s president and chief executive officer, told Reuters on Monday. Hewson said she hoped the U.S. Senate would approve the agreement, which was passed by the House of Representatives last week, and was optimistic that further cuts required under sequestration could be eliminated as the U.S. economy improved. “We had factored sequestration in, so now that we have more input … assuming that the budget gets approved, we’ll have an opportunity to revisit what our outlook is,” said Hewson, who will also assume the job of chairman of the company’s board on January 1, a year after she became CEO. Lockheed, the Pentagon’s No. 1 supplier, has said that the budget cuts will knock about $400 million to $450 million from full-year revenues in 2013, and is currently forecasting a further slight decline in sales in 2014.

    

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