LOCKHEED MARTIN REPORTS IMPROVED SECOND QUARTER EARNINGS
22 Jul 08. Lockheed Martin Corporation (NYSE: LMT) today reported second quarter 2008 net earnings of $882m ($2.15 per diluted share), compared to $778m ($1.82 per diluted share) in 2007. Net sales were $11.0bn, a 4% increase over second quarter 2007 sales of $10.7bn. Cash from operations for the second quarter of 2008 was $1.5bn, compared to $1.4bn in 2007.
“In line with our expectations, the Corporation had a strong second quarter, strategically, operationally and financially,” said Bob Stevens, Chairman, President and CEO. “This performance reflects the dedication of our talented work force and leadership team’s focus on consistent performance for our customers and stockholders.”
The Corporation operates in four principal business segments: Aeronautics; Electronic Systems; Information Systems & Global Services (IS&GS); and Space Systems.
The following table presents the operating results of the four business segments and reconciles these amounts to the Corporation’s consolidated financial results.
(In millions) 2nd Quarter Year-to-Date
2008 2007 2008 2007
Aeronautics $2,884 $3,136 $5,691 $5,957
Electronic Systems 3,095 2,927 5,884 5,442
IS&GS 2,858 2,520 5,362 4,665
Space Systems 2,202 2,068 4,085 3,862
Total net sales $11,039 $10,651 $21,022 $19,926
Aeronautics $366 $378 $689 $677
Electronic Systems 409 387 775 704
IS&GS 272 231 502 429
Space Systems 268 214 499 399
profit 1,315 1,210 2,465 2,209
profit 1,363 1,164 2,541 2,149
The following discussion compares the operating results for the
quarters and year-to-date periods.
Net sales for Aeronautics decreased by 8% for the quarter and 4% for the six months of 2008 from the comparable 2007 periods. In both periods, decreases in Combat Aircraft sales more than offset increases in Air Mobility and Other Aeronautics Programs. The decrease in Combat Aircraft for both the quarter and the six months was due primarily to lower volume on F-16 programs. The increase in Air Mobility for the quarter and first half of the year was due primarily to higher volume on C-130J programs, including deliveries and support activities. There were three C-130J deliveries in the second quarter of 2008 and six during the first six months of the year compared to three and five deliveries in the comparable periods of 2007. The increase in Other Aeronautics Programs for both periods was due mainly to higher volume in sustainment services activities. Operating profit decreased by 3% for the quarter and increased by 2% for the six months of 2008 from the comparable 2007 periods. During the quarter, operating profit decreases in Combat Aircraft and Air Mobility offset an increase in Other Aeronautics Programs. In Combat Aircraft, the decline was due mainly to lower volume on F-16 programs. The decrease in operating profit at Air Mobility was attributable primarily to performance on C-5 programs offset partially by improved performance on C-130 programs. The increase in Other Aeronautics Programs was due mainly to higher volume and improved performance in sustainment services activities. During the first six months of the year, an increase in Other Aeronautics Programs was offset partially by declines in Air Mobility and Combat Aircraft. The increase in