Lockheed Joins Northrop Seeing Computer Services Decline
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Lockheed Martin Corp. and Northrop Grumman Corp. reported weak sales at their information technology units and predicted the operations will drag down revenue next year, especially if automatic U.S. budget cuts take effect.
Sales of computer services to U.S. agencies, including the Pentagon, “would probably be impacted sooner” than traditional, longer-term military contracts, especially if across-the-board spending cuts, known as sequestration, aren’t averted, Wes Bush, chairman and chief executive officer of Northrop, said today on a conference call with analysts.