Lockheed Martin cuts pension liabilities by $4. 9 bn

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Lockheed Martin cuts pension liabilities by $4. 9 bn

Lockheed Martin is displayed during the show by Japan Aerospace in Tokyo.

- Lockheed Martin Corp said on Tuesday it would cut its pension liabilities by about $4.9 billion and revised down its forecast for the full year due to actuarial losses it expects to incur.

The U.S. weapons maker has purchased group annuities contracts from Athene Holding Ltd and will transfer pension obligations and related plan assets to about 18,000 U.S. retirees and beneficiaries.

Lockheed will take a non-cash charge related to actuarial losses of about $1.7 billion in the third quarter.

The company now expects full-year earnings of $21.95 to $22.25 per share, down from the prior forecast of $26.70 to $27.00.

The contracts were used using assets from Lockheed's master retirement trust and no additional funding was purchased, said the company.

There will be no changes to benefits received by retirees and beneficiaries, Lockheed said.