THIS is whygreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
THIS is why we aren't seeing companies say that they are not quite going to make it. While Y2K is NOT the reason here, the EFFECT of that type of disclosure would look very much like this:Lockheed Martin warns on profits, president to retire BETHESDA, Md., Oct 29 (Reuters)- Lockheed Martin Corp. (NYSE:LMT - news) warned on Friday that profits next year will be lower than expected.
The defense contractor also said President and Chief Operating Officer Peter Teets is retiring. Teets acknowledged he was accountable for the disappointing outlook for 2000.
``I am extremely proud of my long and cherished association with ... this great company of Lockheed Martin,'' said Teets. ``The difficult times we have seen are not indicative of the company's real potential, and I feel I must step up to being accountable for our disappointing financial outlook for 2000.''
The company expects 2000 earnings to be about $1 per diluted share, excluding the effects of non-recurring and unusual items. Free cash flow estimates for 2000 were under review, it said, but are expected to be less than $500 million.
In early June, Lockheed Martin estimated 2000 earnings of at least $2.15 per share and free cash flow of $900 million.
On Friday, it cited softness in the commercial space business, increased investments in new advanced launch vehicles, program delays in its system integration unit, failure to win contracts in areas such as future imagery architecture, and some satellite and launch delays.
The reduced estimates were disclosed in its third-quarter report. The company posted operating profits of 48 cents per share in the quarter, just ahead of the consensus estimate of 47 cents compiled by First Call/Thomson Financial.
Net income was $217 million compared with $318 million a year ago, and sales fell to $6.16 billion from $6.35 billion last year.
Teets, 57, will resign from the board as well as retiring from the company. Chairman and Chief Executive Vance Coffman will also assume chief operating officer duties, effective immediately.
Coffman and company director Eugene Murphy will co-chair a search committee for a new COO.
-- jes an ol footballer (email@example.com), October 29, 1999
Retitle this thread: "IS IT TEETS-UP FOR LOCKHEED MARTIN? NOT YET."
-- SH (firstname.lastname@example.org), October 29, 1999.
Lockheed Martin is in the midst of a corporate reorganization to beef up its corporate earnings. Gotta pay for blown-up rockets and lost satellites, you know. But things haven't turned around as fast as the bean-counters and financial knife wielders planned.
It's easy to assume that after seeing third quarter earnings earnings fail to match projections and now predicting that fourth quarter 1999 and first quarter 2000 will not be good, Teets decided now is a very opportune time to take the money and run.
Meanwhile down in the trenches us smaller life forms are scurrying for cover and working to fill our larders for the upcoming winter.
-- Wildweasel (email@example.com), October 29, 1999.
Trenches... As in http://g runt.space.swri.edu/images/vn/jim/khesanhy.jpg?
Nah. It's a metaphor. Say yes.
-- Tom Carey (firstname.lastname@example.org), October 30, 1999.