New Lockheed CEO: Company is preparing for multiple budget scenarios

摘要

The new chief executive of Lockheed Martin said today the company is preparing for a potential defense budget upturn as well as a downturn. Experts have speculated that the coronavirus stimulus packages coupled with potential changes as a result of the election later this year could drive spending down. But Jim Taiclet, speaking during his first earnings call since taking over last month, said he tries "not to speculate on the behavior of people that are going to make independent decisions." "We're just getting the company ready for either scenario really," he said. Taiclet said he's asked executives to look at what a downturn might mean for their programs. "In that scenario, it's a red team kind of an exercise," he said. However, Taiclet noted that defense budget cuts would take two to three years to flow into defense production lines, meaning companies have time to prepare. Meanwhile, Lockheed said today sales in its most recent quarter totaled $16.2 billion, up 12% from the same three-month period a year earlier.