.S. MAJORS EXCEED EXPECTATIONS
22 Apr 08. The first quarter Reporting Season kicked off with the U.S. Defense majors showing no sign of a slowdown in profits and order growth.
Lockheed Martin
Lockheed Martin Announces First Quarter 2008 Results.
22 Apr 08. Lockheed Martin Corporation (NYSE: LMT) today reported first quarter 2008 net earnings of $730m ($1.75 per diluted share), (2007: $690m, $1.60 per diluted share). Net sales were $10.0bn, an 8% increase over first quarter 2007 sales of $9.3bn. Cash from operations for the first quarter of 2008 was $882m, (2007: $1.5bn).
“We are off to an excellent start for 2008. Our first quarter results reflect continued progress on our commitment to build the world’s premier global security company,” said Bob Stevens, Chairman, President and CEO. “We are meeting this goal by building on our core capabilities and continuing to be responsive to customers while delivering greater value to them. This continued success reflects the efforts of our dedicated and talented employees who understand the important challenges facing our customers across the globe.”
Summary Reported Results and Outlook
The following table presents the Corporation’s results for the first quarter of 2008 and 2007, in accordance with generally accepted accounting principles (GAAP):
The majority of the $0.10 increase in the Corporation’s projected 2008 diluted earnings per share results from higher projected segment operating profit in the Space Systems segment.
Segment Results
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)1st Quarter
$2008 2007
Net sales
Aeronautics 2,807 2,821
Electronic Systems 2,789 2,515
Information Systems
& Global Services 2,504 2,145
Space Systems 1,883 1,794
Total net sales 9,983 9,275
Operating profit
Aeronautics 323 299
Electronic Systems 366 317
Information Systems
& Global Services 230 198
Space Systems 231 185
Segment operating
Profit 1,150 999
Unallocated
corporate income
(expense), net 28 (14)
Total operating
profit 1,178 985
Operating results for the first quarter of 2008 to the first quarter of 2007.
Aeronautics
($ millions) 1st Quarter
2008 2007
Net sales 2,807 2,821
Operating profit 323 299
Operating margin 11.5% 10.6%
Net sales for Aeronautics were slightly lower for the first quarter of 2008 compared to the first quarter of 2007. The decrease in sales resulted from declines in Combat Aircraft that partially were offset by increases in Air Mobility. The decrease in Combat Aircraft mainly was due to lower volume on F-16 and F-117 programs, which more than offset increased F-22 and F-35 volume. The increase in Air Mobility mainly was due to higher volume on C-130 programs, which more than offset lower volume on the C-5 program.
Segment operating profit increased by 8% for the first quarter of 2008 from the first quarter of 2007. The increase in operating profit primarily was due to higher volume on C-130 programs in Air Mo