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Lockheed Martin CFO Offers 2012 Outlook

Lockheed Martin CFO Offers 2012 Outlook

During a recent conference call with analysts, the chief financial officer of defense contractor Lockheed Martin discussed the potential impact of government spending cuts on the business.

According to The Associated Press, the contractor reported its third-quarter net income grew 25 percent through higher sales, but CFO Bruce Tanner said looming government spending cuts could limit 2012 sales.

When asked about the 2012 sales outlook assuming the defense budget comes down for next year, Tanner explained that a portion of its sales will come from prior contracts that are backlogged.

"I think the answer is that it (varies) a little bit by the (Lockheed) business area," Tanner noted. "If you just sort of think of Aeronautics and Space, especially, those two business areas have a lot of backlog that extends over multiple years and so, really, if we're talking 2012, most of what's going to occur sales-wise for those two business areas in 2012 is contracts that are in our backlog as of today."

Despite the potential for flat sales in 2012, Lockheed Martin has won a number of defense contracts recently including one to modernize surveillance radars for the Air Force, according to a company release. 

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