Lockheed Martin IT grows faster

Lockheed Martin's information technology sector grew revenue 4 percent in the first quarter, outpacing overall company growth.

Lockheed's Systems & IT Group reported first quarter net sales of $4.1 billion compared with $3.9 billion in the first quarter of 2004. Group operating income for the quarter increased 13 percent to $387 million. The group includes the company's Electronics, Integrated Systems & Solutions, and Information and Technology businesses.

Lockheed, which reported results on April 26, generated total net sales of $8.5 billion, a 2 percent increase over the year-earlier quarter. First quarter net earnings increased 27 percent to $369 million ($0.83 per diluted share).

Immediately after the earnings report, shares of Lockheed gained 9 cents to $59.84. The stock closed slightly higher the following day.

Among first quarter highlights, Lockheed cited a Department of Housing and Urban Development contract as part of the HUD Information Technology Services (HITS) procurement. HUD in January split the $800 million HITS program between Lockheed and Electronic Data Systems.

Lockheed, meanwhile, has increased its outlook for 2005 sales to a range of $36.5 to $38 billion. The company's outlook for 2005 earnings per share has been increased to a range of $3.35 to $3.55.