Mike Stone and Aishwarya Naair

(Reuters) -U.S. weapons maker Lockheed Martin Corp (NYSE: ) reported Tuesday that quarterly revenue dropped and quarterly profits fell 5.7%. Supply chain woes caused by the COVID-19 pandemic, which was compounded by inflation pressure, led to a drop in quarterly sales.

Analyst estimates are in agreement with the company’s full-year revenue projection of $66 billion.

In March, the record-breaking $813 billion U.S. president Joe Biden requested for a national defense budget. This was in response to Russia’s invasion.

The pandemic has hampered the ability of many companies to purchase and supply components needed for products. This created shortages that have reduced inventories, which in turn led to lower profits.

As a result of pandemic-induced financial strain, Lockheed’s Dual-Use Suppliers that serve both the commercial and military aviation markets have seen their plane components impacted.

Premarket trading saw shares of Lockheed fall 2.4% to $456

Lockheed Aeronautics was its largest business unit. It makes F-35 fighter aircrafts. However, revenues rose by 2% over the previous quarter, and profits plummeted to $697m.

Lockheed delivered 26 F-35 planes in quarter one, as opposed to the 17 it received a year ago

From $1.84billion, which was $6.56 per shares a year ago, net earnings dropped to $1.73billion, or $6.44, for the quarter that ended March 27, from $1.84billion, or $6.56, per share.

In the third quarter, net sales dropped by around 8% to $14.96 Billion.

Lockheed’s $4.4billion purchase of Aerojet Rocketdyne Holdings Inc, a rocket engine manufacturer, was rescinded during the quarter by Antitrust Regulators.

Jesus “Jay” Malave (senior vice president, CFO, at L3Harris) was named the chief financial officer of Lockheed in February.