Aug 3 (Reuters) – Lockheed Martin Corp (LMT.N) stated on Tuesday it will reduce its pension liabilities by about $4.9 billion and revised down its forecast for the full-year resulting from actuarial losses it expects to incur.
The U.S. weapons maker has bought group annuity contracts from Athene Holding Ltd (ATH.N) and can switch pension obligations and associated plan belongings for about 18,000 U.S. retirees and beneficiaries to the retirement companies supplier.
Lockheed will take a non-cash cost associated to actuarial losses of about $1.7 billion within the third quarter.
The corporate now expects full-year earnings of $21.95 to $22.25 per share, down from its prior forecast of $26.70 to $27.00.
The contracts have been bought utilizing belongings from Lockheed’s grasp retirement belief and no extra funding was used, stated the corporate.
There will likely be no modifications to the advantages acquired by retirees and beneficiaries, Lockheed stated.
Reporting by Shreyasee Raj in Bengaluru; Modifying by Maju Samuel
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