25 Jan 02. Lockheed Martin Corporation (NYSE: LMT) today reported 2001 earnings from continuing operations of $0.18 per share, (2000 ($0.95)). Nonrecurring and unusual items reduced 2001 and 2000 earnings per share from continuing operations by $1.42 and $2.12 respectively. Excluding the aforementioned items, earnings from continuing operations would have been $1.60 per share for 2001 and $1.17 per share for 2000.
The Corporation reduced debt by $2.4bn for 2001 and $4.4bn since year-end 1999. The net debt to capitalization ratio (net debt is defined as total debt less invested cash) was 50.6 percent at the end of 2001, down from 54.1 percent at year-end 2000.
The Corporation posted a net loss of $2.42 per share in 2001 versus a net loss of $1.29 per share in 2000 including the impact of discontinued operations and extraordinary items. Results in 2001 included a loss of $2.52 per share related to discontinued operations and a charge of $0.08 per share related to early extinguishment of debt. Results for 2000 included a loss from discontinued operations of $0.10 per share and an extraordinary charge of $0.24 per share related to an early extinguishment of debt.
For the fourth quarter of 2001, the Corporation incurred a loss from continuing operations of $0.34 per share, compared to fourth quarter 2000 earnings from continuing operations of $0.50 per share. Fourth quarter 2001 results from continuing operations were reduced by $384m, or $0.89 per share, for the effects of certain nonrecurring and unusual items primarily associated with the previously disclosed write-down of the Corporation’s investment in Astrolink International LLC and charges associated with the exit from the Global Telecommunications services business.
Net sales for both the fourth quarter of 2001 and the fourth quarter of 2000 were $7.3bn. Adjusting for acquisitions and divestitures, sales increased 3 percent for the comparative quarters. Sales for the year 2001 were $24bn, (2000: $24.5bn). Adjusting for acquisitions and divestitures, sales were unchanged in 2001 as compared to 2000.
The Corporation expects 2002 recurring earnings per share from continuing operations of $2.45 – $2.50 of which 15 -25 percent is estimated in each of the first two quarters.
Net sales for the year 2002 are anticipated to be between $25.0 – $25.8bn of which 15 -25 percent is estimated in each of the first two quarters. Sales for the year 2003 are anticipated to be between $26.4 – $27.4bn.
The Corporation’s backlog at year-end 2001 was a record $71.3bn, (2000: $55.1bn), a 29 percent increase. The Corporation recorded a total of approximately $40.1bn in orders including nearly $19bn for the F-35 (Joint Strike Fighter) System Design and Development (SDD) phase.
Net sales for the Systems Integration segment declined by 6 percent for the quarter and 7 percent for the year ended December 31, 2001 from the comparable 2000 periods. Sales would have decreased 1 percent for the fourth quarter and increased 4 percent for the year ended December 31, 2001 from the comparable year-ago periods had the sales attributable to the segment’s Aerospace Electronic Systems and Controls Systems businesses, which were divested in the second half of 2000, and the transfer of the Payload Launch Vehicle (PLV) contract to the Space Systems segment at the start of 2001, been excluded from the comparisons. The decrease in sales for the fourth quarter of 2001 is attributable to volume declines in the platform integration and distribution technology lines of business at Owego. These decreases were partially offset by increases in volume in the segment’s Naval Electronic and Surveillance Systems and C4I product lines. The increase in sales for the year is attributable to volume increases in the segment’s Missiles & Air Defense, Naval Electronic and Surveillance Systems, and C4I product lines. These increases were partially offset by volume declines at Owego.