Lockheed sees material effect of budget cuts on sales, earnings

Thu Feb 28, 2013 12:40pm EST

WASHINGTON, Feb 28 (Reuters - Lockheed Martin Corp, the Pentagon's largest supplier, on Thursday said its programs could be materially reduced, delayed or canceled if Congress does not avert across-the-board budget cuts due to take effect Friday, which would drive sales and earnings lower than projected.

If the reductions do take effect, Lockheed said its 2013 sales would drop more sharply than the current outlook, which forecast a decline in the mid single-digit percentage range.

Earnings and cash flow would follow a similar pattern, the company said in its annual report filed Thursday with the U.S. Securities and Exchange Commission. It said financial results in future years could also be materially affected.

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