28 Jan 10. Lockheed Martin Corporation (NYSE: LMT) today reported fourth quarter 2009 net earnings of $827m, or $2.17 per diluted share, compared to $823m, or $2.05 per diluted share, in 2008. Net earnings in 2009 included higher pension expense as disclosed in our Jan. 22, 2009 earnings release and in our 2008 Form 10-K. The fourth quarter of 2009 included a FAS/CAS pension adjustment of ($114) m, or ($0.19) per share, and an $11m, or $0.03 per share, benefit from the resolution of an IRS examination, which, on a combined basis, decreased net earnings by $63m, or $0.16 per share. The fourth quarter of 2008 included a FAS/CAS pension adjustment of $32m, or $0.05 per share, and an unusual gain of $48 m, $0.08 per share, which together increased net earnings by $52m, or $0.13 per share.Net sales for the fourth quarter of 2009 were $12.5bn, a 13% increase over the $11.1 in 2008. Cash from operations in the fourth quarter of 2009 was ($605)m, which included a discretionary contribution of $1.5 to our pension trust. Cash from operations in the fourth quarter of 2008 was $997m, which included a discretionary contribution of $109 m to our pension trust.
For the year ended Dec. 31, 2009, net earnings were $3.0bn, or $7.78 per share, compared to $3.2bn, or $7.86 per share, in 2008. Net sales for 2009 were $45.2bn, a 6% increase over the $427bn in 2008.
“Our achievements in 2009 were numerous and significant while operating in a dynamic business environment,” said Lockheed Martin Chairman and CEO, Bob Stevens. “The Corporation remains strong, healthy and well-positioned for future growth. As we move into a new decade, we will continue to meet our customers’ most important challenges by offering the innovative products, superior services and strong performance that have made Lockheed Martin the world’s foremost provider of global security solutions.”
Net sales for Aeronautics increased by 13% for the quarter and 6% for the year ended Dec. 31, 2009 from the comparable 2008 periods. In both periods, sales increased in all three lines of business. The increase in Air Mobility primarily was attributable to higher volume on the C-130 programs, including deliveries and support activities. There were six C-130J deliveries in the fourth quarter of 2009 and three in the fourth quarter of 2008. There were sixteen C-130J deliveries in 2009 and twelve in 2008. The increase in Combat Aircraft principally was due to higher volume on the F-35 program and increases in F-16 deliveries, which partially were offset by lower volume on F-22 and other combat aircraft programs. The increase in Other Aeronautics Programs mainly was due to higher volume on P-3 programs and advanced development programs, which partially were offset by declines in sustainment activities.Operating profit for Aeronautics increased by 15% for the quarter and 10% for the year ended Dec. 31, 2009 from the comparable 2008 periods. In both periods, the growth in operating profit primarily was due to increases in Air Mobility and Other Aeronautics Programs. The increase in Air Mobility operating profit primarily was due to the higher volume on C-130J deliveries and C-130 support programs.
During the fourth quarter, Air Mobility’s operating profit also increased due to improved performance on C-5 programs. The increase in Other Aeronautics Programs in both periods mainly was attributable to improved performance in sustainment activities and higher volume on P-3 programs. Additionally, the increase in operating profit for the year included the favorable restructuring of a P-3 modification contract in the third quarter of 2009. Combat Aircraft’s operating profit increased during the quarter primarily due to higher volume on the F-35 program and an increase in the level of favorable performance adjustments on the F-22 program in 2009 compared to 2008. These increases more than offset decreased operating prof