Lockheed Martin Corp. said yesterday that it will report a charge of $350 million to $400 million in the first quarter of 1999 after the adoption of a new method of accounting for start-up activities.

"This is a one-time item," said James Feting, a Lockheed spokesman. "Under the new accounting standard, all costs [after Jan. 1] will be expensed as they are incurred."

The Bethesda-based aerospace and defense contractor said the estimate revises an earlier forecast of $300 million to $400 million reported in a filing with the Securities and Exchange Commission on Nov. 2.

"This accounting adjustment relates to money already spent and will, therefore, not have an effect on the company's operating earnings," Feting said.

Wall Street is expecting Lockheed to earn $1.58 a share in the first quarter, compared with $1.42 this year.

The company has incurred significant start-up costs in the aircraft and launch vehicle product areas, specifically on the -C-130J and commercial launch services programs, and in certain commercial and civil government businesses.

Pub Date: 11/18/98