Bloomberg reported that contractors would most likely still wait for assurances from Congress before they proceeding to cancel their planned furloughs. United Technologies Corp had already reversed furloughs of 4,000 employees after the Pentagon said majority of civilian employees would be called back to work.
Other companies, however, would probably follow the example of Lockheed. Spokesman Gordon Johndroe told Bloomberg through email that it was still too early to say if there would be any changes in Lockheed's plans to furlough 3,000 workers beginning tomorrow.
Mark Amtower, an owner of a contracts consulting firm based in Maryland, said, "Are they going to pay them now? Are they going to get paid later? A little clarification from Congress would be nice."
Lockheed Martin reported net sales of USD 11.4 billion for the second quarter of this year. Compared to the same period last year, this represented a 4% decrease in net sales. Its net earnings, however, increased by 10% to USD 859 million. Lockheed Martin CEO and President Marilyn Hewson said they still performed well despite an uncertain budget environment. "Even in an uncertain budget environment, our portfolio of products and capabilities, robust cash generation, and outstanding performance by our 116,000 employees, continue to deliver value to our customers and shareholders," Hewson said in a press release.
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