27 July 04.
* REPORTS SECOND QUARTER 2004 NET SALES OF $8.8 BILLION, UP 14%;
YEAR-TO-DATE SALES UP 16% TO $17.1 BILLION
* REPORTS SECOND QUARTER 2004 EARNINGS PER SHARE OF $0.66, UP 22%;
YEAR-TO-DATE EARNINGS PER SHARE UP 20% TO $1.31
* GENERATES $734 MILLION IN CASH FROM OPERATIONS IN THE SECOND QUARTER;
$1.8 BILLION YEAR-TO-DATE
Lockheed Martin Corporation (NYSE: LMT – News) today reported second quarter 2004 net earnings of $296m($0.66 per diluted share), (2003: $242m), ($0.54 per diluted share). Net sales were $8.8bn, a 14% increase over second quarter 2003 sales of $7.7bn. Sales and operating profit grew in all business segments during the quarter. Cash provided by operating activities for the second quarter of 2004 was $734m.
“With our strong performance through the first six months, we are on our way to meeting this year’s operational and financial goals,” said Chairman and Chief Executive Officer Vance Coffman. “Our cash generation continues to be outstanding, and we spent over $275 million repurchasing about 6
million shares during the quarter. We are well positioned and focused on serving the needs of our customers and enhancing shareholder value.”
SUMMARY REPORTED RESULTS AND OUTLOOK
The following table presents the Corporation’s results on a GAAP basis for the quarter and year-to-date periods:
REPORTED RESULTS
(In millions, except 2nd Quarter Year-to-Date
per share data) 2004 2003 2004 2003
Net sales $8,776 $7,709 $17,123 $14,768
Operating profit
Segment operating
profit $740 $592 $1,408 $1,144
Unallocated corporate
(expense), net:
FAS/CAS pension
adjustment (148) (68) (298) (140)
Other (48) (54) (30) (29)
$544 $470 $1,080 $975
Net earnings $296 $242 $587 $492
Diluted earnings
per share $0.66 $0.54 $1.31 $1.09
Cash flow
from operations $734 $845 $1,796 $1,389
OUTLOOK
(In millions, except per share data) 2004 Projections
Net sales $33,800 – $34,800*
Operating profit:
Segment operating profit $2,700 – $2,800*
Unallocated corporate (expense)
income, net:
FAS/CAS pension adjustment approx. (600)
Other (50) – 0
$2,050 – $2,200*
Diluted earnings per share $2.50 – $2.60*
Cash flow from operations Approx. $2,400
* Results are expected to be closer to the higher end of the range.
Year-to-Date Results
Net sales for the first six months of 2004 were $17.1bn, a 16% increase over the $14.8bn recorded in the comparable 2003 period. Net earnings for the six months ended June 30, 2004 were $587m ($1.31 per share) compared to $492m ($1.09 per share) in 2003. The 2003 results included a pre-tax charge of $41 million (reported in Unallocated Corporate Expense, net) related to the Corporation’s exit from the commercial mail sorting business, which decreased earnings by $27m ($0.06 per share).
The following table presents the operating results of the five business
segments and the Corporation on a consolidated basis as determined by
GAAP:
(In millions) 2nd Quarter Year-to-Date
2004 2003 2004 2003
Net sales
Aeronautics $3,141 $2,405 $6,015 $4,493
Electronic Systems