is not seeing as much of an impact from government spending cuts as it predicted earlier this year, as the aerospace and defense manufacturer reported net earnings of $859 million for the second quarter of 2013, a 10 percent increase over the same period 2012.
Quarterly sales reached $11.4 billion, a 4 percent drop from the second quarter of 2012, when the company reported $11.9 billion in quarterly sales. Earlier this year, Lockheed projected a loss of $825 million in anticipated annual revenue from sequestration.
Lockheed's F-35 program, which has been mired by delays, showed increased production volume during the second quarter.
"Net sales increased by approximately $175 million from F-35 production contracts due to increased production volume and higher risk retirements," Lockheed said in its quarterly report.
Marilyn Hewson, chief executive of Lockheed Martin
, told reporters she believes they're making "good progress" in negotiations with the Pentagon for the next two production lots of F-35 fighter jets, and hopes to complete an agreement in the near future.
Despite the boost from its F-35 program, overall profit within Lockheed's aeronautics unit decreased to $407 million, down from $454 million a year earlier, which the company attributed to lower net sales from F-16 programs.
Related: Commercial Avionics News