Federal spending cuts will take a bite out of the bottom line of at least one major defense contractor this year.
On Tuesday, Lockheed Martin (NYSE:LMT) said that it would lose $825 million in previously forecast 2013 revenue due to defense spending reductions mandated by the sequester. The company laid off 650 employees during the first quarter, the Washington Post noted.
Still, Lockheed posted quarterly earnings of $761 million, up 14% compared to the same period this year. That included a $30 million charge relating to the workforce reduction.
Sales at the defense contractor came in at $11.1 billion during the quarter, down 2% from the prior year.
Lockheed officials said that the impact of the defense cuts would escalate during the remainder of the year. However, a company spokesperson said no additional layoffs were planned at present.
Earlier this month, the U.S. Navy scuttled performances of its aerial stunt-flying team, the Blue Angels, for the remainder of the year due to sequester budget cuts.
Shares of Lockheed Martin rose almost 1% in Wednesday midday trading.