(Corrects headline and paragraph 1 to say profit rose due to
lower pension liability, not because of a change in pension
* Raises 2014 profit forecast to $10.85-$11.15/share
* Q2 earnings $2.76/share vs $2.64 a year earlier
* Records pension income of $85 mln
July 22 Lockheed Martin Corp, the
Pentagon's largest defense supplier, reported a 3.5 percent rise
in quarterly profit as higher interest rates lowered its pension
The maker of the F-35 fighter jet, satellites and coastal
warships also raised its 2014 earnings forecast to $10.85-$11.15
per share from $10.50-$10.80.
Lockheed's shares were up 2.4 percent before the bell.
Lockheed has amended some of its pension plans for non-union
employees to freeze future retirement benefits and will instead
transition them to a contribution retirement savings plan.
The company said it recorded pension income of $85 million
for the second quarter ended June 29, compared with an expense
of $120 million a year earlier.
Lockheed also said it expects to resume share repurchases in
the current quarter. The company had ceased buybacks while it
was considering amendments to its benefit pension plans.
The company's net income rose to $889 million, or $2.76 per
share, from $859 million, or $2.64 per share, a year earlier.
Lockheed reported a 13 percent rise in revenue at its
aeronautics business - its largest unit - due to a larger number
of production contracts for the F-35 fighter jet.
With an estimated cost of $400 billion, the radar-evading
jet is the world's most expensive weapons project.
Total revenue fell about 1 percent to $11.31 billion, hurt
by a decline in U.S. government spending.
Lockheed's shares have gained about 41 percent in the past
year, compared with a 16 percent rise in the S&P 500 index
. They were up at $167 in premarket trading after closing
at $162.98 on the New York Stock Exchange on Monday.
(Reporting by Sagarika Jaisinghani in Bangalore; Editing by
Maju Samuel and Saumyadeb Chakrabarty)