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LOCKHEED MARTIN REPORTS 2002 EARNINGS

24 Jan 03. Lockheed Martin Corporation (NYSE: LMT – News) reported 2002 earnings from continuing operations of $533m, or $1.18 per diluted share, (2001: $43M, or $0.10). Adjusting for goodwill amortization, earnings from continuing operations in 2001 would have been $279m, or $0.65 per share. The 2002 results included the impact of several unusual items, which decreased earnings by $632m, or $1.40 per share. The 2001 earnings from continuing operations also included the impact of several unusual items that decreased earnings by $65m, or $1.50 per share. Excluding unusual items, 2002 earnings from continuing operations would have been $1.2bn, or $2.58 per share. After adjusting for the impact of goodwill amortization and excluding unusual items, 2001 earnings from continuing operations would have been $930m, or $2.15 per share. Including discontinued operations, net earnings for 2002 were $500m , or $1.11 per share, as compared to a net loss of $1.0bn, or $2.42 per share for 2001.

Net sales for 2002 were $26.6bn, an 11% increase, (2001; $24.0bn). Backlog at year-end was $70.4bn, (2001: $71.3bn).

“Our fourth quarter, like the entire year, was a solid one for the corporation. Our performance delivered higher sales, operating profit and cash,” said Vance Coffman, chairman and CEO. “Looking ahead to 2003, we have a healthy backlog of over $70bn, and we are increasing our sales, operating profit and cash projections. We are committed to meeting customer requirements, continued mission success and achieving strong financial performance.”

Net sales for the fourth quarter of 2002 were $7.8bn, a 6% increase, (2001: $7.3bn). The loss from continuing operations for the fourth quarter of 2002 was $342m, or $0.76 per share, (2001: $146m, or $0.34). Adjusting for goodwill amortization, the loss from continuing operations in the fourth quarter of 2001 would have been $93m, or $0.22 per share. The fourth quarter 2002 results included the after-tax impact of several unusual items: a $504m($1.12 per share) charge related to the impairment of telecommunications equity investments; a charge of $112m ($0.25 per share) related to advances to a Russian manufacturer for prepaid commercial launch services; and a $106m($0.24 per share) charge related to the impairment of the investment in Space Imaging, LLC and our guarantee of our share of Space Imaging’s existing credit facility. Excluding these unusual items, fourth quarter 2002 earnings from continuing operations would have been $380m, or $0.85 per share.

The fourth quarter 2001 results also included the after-tax impact of several unusual items that, on a combined basis, reduced earnings by $384m, or $0.89 per share. After adjusting for goodwill amortization and excluding the unusual items, fourth quarter 2001 earnings from continuing operations would have been $291m, or $0.67 per share.

For the year ended December 31, 2002, net sales were $26.6bn, an 11% increase, (2001 $24.0bn. Earnings from continuing operations for 2002 were $533m, or $1.18 per share, (2001: $43m or $0.10). Adjusting for goodwill amortization, earnings from continuing operations in 2001 would have been $279m, or $0.65 per share.

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