Lockheed Martin, a major U.S. defense contractor, has forecasted lower profits for 2024 due to supply chain disruptions in its aeronautics segment that produces F-35 jets. The company experienced a decline in net sales from the F-35 program in the fourth quarter of 2023. Despite an increase in orders due to global tensions, labor and supply chain disruptions caused by the pandemic are impacting the defense sector. Lockheed's earnings are considered an indicator for the industry, with rivals Northrop Grumman and General Dynamics also expected to report soon.
Frequently Asked Questions
Q: What is Lockheed Martin's profit forecast for 2024?
A: Lockheed Martin forecasted its 2024 profit to be below Wall Street expectations due to supply chain issues. (The Union Leader)
Q: Why did Lockheed Martin's profit outlook disappoint?
A: The profit outlook was disappointing because of lingering supply and labor squeezes that affected the company's operations. (Reuters)
Q: What are some specific challenges affecting Lockheed Martin's profit?
A: Specific challenges include supply chain disruptions, inflationary pressures, labor challenges, and a significant impact on the F-35 program due to supply shortages. (Finance Yahoo)
Q: Has Lockheed Martin experienced issues like this before?
A: Yes, Lockheed Martin experienced supply chain challenges in 2022 which seem to have persisted into 2023 and are expected to impact 2024 as well. (Lockheed Martin Annual Report 2022)
Q: Did Lockheed Martin expect sales growth in 2023?
A: No, Lockheed did not expect sales growth in 2023 and predicted flat sales, with growth anticipated to return in 2024. However, their 2024 profit forecast is now also dour due to continued supply chain woes. (Defense News)
Q: How did supply chain issues affect the defense industry in general?
A: Supply chain issues have created setbacks for the defense industry at large, impacting companies like Lockheed Martin and Raytheon Technologies and affecting their ability to produce and deliver weapons, including those for Ukraine. (WSJ)
Q: What financial results did Lockheed Martin report for the end of 2023?
A: Lockheed Martin reported financial results that were reflective of the known impacts from inflationary pressures and labor and supply chain challenges at the time of the news release. (Lockheed Martin News)
Q: Why did Lockheed Martin trail the market in 2023?
A: Lockheed Martin trailed the market in 2023 due to continued supply chain issues, according to a report looking at the company's entry into 2024. (Nasdaq)