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Lockheed eyes foreign, non-defence work as Pentagon budget drops

Published on Jun 10, 2014 9:33 AM

WASHINGTON (REUTERS) - Lockheed Martin Corp on Monday said it was banking on international and non-defenxe orders to offset a drop in US military spending, with Pentagon orders accounting for a low 61 percent of overall sales in 2013 and trending lower.

Lockheed Chief Financial Officer Bruce Tanner said US defence orders would likely dip further as a percentage of overall revenues in 2014 and 2015, and orders could drop as low as 50 percent, depending on what happened in other business areas.

"It's not in our long-term vision to get to 50-50 ... but it's not out of the possibility that it could drop there," Tanner told Reuters at the company's annual media conference.

He said Lockheed's revenues would remain "fairly flat" in 2014 and 2015, but could start to edge higher in 2016 or 2017, based on current Pentagon budget projections.

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