Lockheed Martin Corporation (NYSE:LM) released its fourth quarter earnings report this morning, posting results which were tempered by a number of charges related to cuts in the U.S. defense budget. As a result of those cuts, the weapons maker had to reduce its workforce. Lockheed Martin Corporation (NYSE:LMT) said its net earnings from continuing operations in the fourth quarter declined 14.2% to $488 million or $1.50 per share. That’s compared to $569 million or $1.73 per share in the same quarter a year ago. Revenues also declined, falling from $12.1 billion to $11.5 billion.

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Analysts had been expecting the company to report earnings of $2.02 per share on revenue of $11.34 billion.

Lockheed Martin posts lower earnings

The weapons maker reported that it took a special “non-cash goodwill impairment charge” of $195 million, which cut earnings by $176 million or 54 cents per share. It also paid $171 million to reduce its workforce during the quarter, which cut $111 million or 34 cents per share off of its earnings. The company’s net earnings also included $120 million in pension expenses, which further reduced earnings by $74 million or 23 cents per share.

For the full year, Lockheed Martin Corporation (NYSE:LMT) reported net sales of $45.4 billion, compared to $47.2 billion in 2012. Net earnings from continuing operations for the full year were $3 billion or $9.04 per share. That’s compared to $8.34 per share in 2012. Analysts had been expecting the weapons maker to report earnings of $9.49 per share for the full year.

Sales across all five of the weapons maker’s business areas declined during the December quarter. However, its missiles and fire control, mission systems and training, and space systems divisions did report increased operating profits.

Lockheed Martin guides for 2014

For the full 2014 year, Lockheed Martin Corporation (NYSE:LMT) said it expects earnings to rise and come in between $10.25 and $10.55 per share. The company projects revenues to be down slightly to flat this year, coming in between $44 billion and $45.5 billion.