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8-K - LOCKHEED MARTIN CORP | v163069_8k.htm |
EX-99.2 - LOCKHEED MARTIN CORP | v163069_ex99-2.htm |
Information
For Immediate
Release
LOCKHEED MARTIN ANNOUNCES
THIRD QUARTER 2009
RESULTS
· |
Third
quarter net sales of $11.1 billion; Year-to-date net sales of $32.7
billion
|
· |
Third
quarter earnings per share of $2.07; Year-to-date earnings per share of
$5.61
|
· |
Third
quarter net earnings of $797 million; Year-to-date net earnings of $2.2
billion
|
· |
Generated
$1.4 billion in cash from operations for the quarter; $3.8 billion
year-to-date
|
· |
Increases
outlook for 2009 earnings per share and return on invested
capital
|
· |
Reaffirms
outlook for 2009 net sales
|
· |
Updates
2009 cash from operations for anticipated discretionary pension plan
pre-funding of at least $1 billion
|
· |
Provides
initial outlook for
2010
|
BETHESDA, Md. Oct.
20, 2009 – Lockheed Martin Corporation (NYSE: LMT) today reported third quarter
2009 net earnings of $797 million ($2.07 per diluted share), compared to $782
million ($1.92 per diluted share) in 2008. Net earnings in 2009 included higher
pension expense as disclosed in our Jan. 22, 2009 earnings release and in our
2008 Form 10-K. The third quarter of 2009 included a FAS/CAS pension
adjustment of ($113) million and an unusual tax benefit of $58 million from the
resolution of an IRS examination. These items together decreased third quarter
2009 net earnings by $15 million ($0.04 per share). The third quarter of 2008
included a FAS/CAS pension adjustment of $32 million and an unusual gain of $44
million, which together increased net earnings by $49 million ($0.12 per
share).
Net sales for the
third quarter of 2009 were $11.1 billion, compared to $10.6 billion in 2008.
Cash from operations for the third quarter of 2009 was $1.4 billion, compared to
$1.1 billion in 2008.
“Our third quarter
results keep the Corporation on track to achieve full year 2009 operational and
financial commitments,” said Bob Stevens, Chairman, President and CEO. “Our
diverse portfolio of programs is well positioned to provide critical, global
security solutions to our customers as we support their changing program
priorities and generate shareholder value.”
Summary Reported Results and
Outlook
The following table
presents the Corporation’s results for the periods referenced in accordance with
generally accepted accounting principles (GAAP):
REPORTED
RESULTS
|
3rd
Quarter
|
Year-to-Date
|
||||||||||||||
(In millions,
except per share data)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Net
sales
|
$ | 11,056 | $ | 10,577 | $ | 32,665 | $ | 31,599 | ||||||||
Operating profit
|
||||||||||||||||
Segment
operating profit
|
$ | 1,266 | $ | 1,250 | $ | 3,742 | $ | 3,715 | ||||||||
Unallocated
corporate, net:
|
||||||||||||||||
FAS/CAS
pension adjustment
|
(113 | ) | 32 | (342 | ) | 96 | ||||||||||
Stock
compensation expense
|
(40 | ) | (40 | ) | (112 | ) | (115 | ) | ||||||||
Unusual
items
|
—
|
44 |
—
|
145 | ||||||||||||
Other,
net
|
(28 | ) | (44 | ) | (63 | ) | (58 | ) | ||||||||
1,085 | 1,242 | 3,225 | 3,783 | |||||||||||||
Interest
expense
|
67 | 85 | 219 | 264 | ||||||||||||
Other
non-operating income / (expense), net1
|
54 | (13 | ) | 98 | 14 | |||||||||||
Earnings
before income taxes
|
1,072 | 1,144 | 3,104 | 3,533 | ||||||||||||
Income
taxes2
|
275 | 362 | 907 | 1,139 | ||||||||||||
Net
earnings
|
$ | 797 | $ | 782 | $ | 2,197 | $ | 2,394 | ||||||||
Diluted
earnings per share
|
$ | 2.07 | $ | 1.92 | $ | 5.61 | $ | 5.82 | ||||||||
Cash
from operations3
|
$ | 1,424 | $ | 1,056 | $ | 3,778 | $ | 3,424 |
1 |
Includes
interest income and unrealized gains (losses), net on marketable
securities held in a Rabbi Trust
to fund certain employee benefit
obligations.
|
2 |
Includes an
unusual benefit from the resolution of an IRS examination that decreased
income tax expense by $58 million during the quarter and nine month
periods of 2009.
|
3 | In the fourth quarter of 2008, the Corporation reclassified the effect of exchange rate changes on cash from “Cash from operations” to a separate caption in the Statement of Cash Flows. Accordingly, the prior period amount now reflects this presentation. |
2
The following table
and other sections of this press release contain forward-looking statements,
which are based on the Corporation’s current expectations. Actual
results may differ materially from those projected. See the
“Forward-Looking Statements” discussion contained in this press
release.
2009 FINANCIAL OUTLOOK
1
|
2009
Projections
|
||
(In millions,
except per share data and percentages)
|
July
2009
|
Current
Update
|
|
Net sales
|
$44,700 -
$45,700
|
$44,700 - $45,700
|
|
Operating
profit:
|
|||
Segment operating profit
|
$5,075 -
$5,175
|
$5,075 -
$5,175
|
|
Unallocated
corporate expense, net:
|
|||
FAS/CAS pension
adjustment
|
(460)
|
(460)
|
|
Unusual items,
net
|
—
|
—
|
|
Stock
compensation expense
|
(160)
|
(160)
|
|
Other,
net
|
(100)
|
(100)
|
|
4,355
- 4,455
|
4,355
- 4,455
|
||
Interest
expense
|
(305)
|
(305)
|
|
Other non-operating income,
net
|
45
|
100
|
|
Earnings before income
taxes
|
$4,095
- $4,195
|
$4,150
- $4,250
|
|
Diluted earnings per
share
|
$7.15
- $7.35
|
$7.40
- $7.60
|
|
Cash from
operations
|
≥ $4,100
|
≥
$3,100
|
|
ROIC 2
|
≥ 18.5%
|
≥
19.5%
|
1 |
All amounts
approximate.
|
2 |
See
discussion of non-GAAP performance measures at the end of this
document.
|
The Corporation’s
updated outlook for 2009 diluted earnings per share primarily reflects the
following revisions:
·
|
An unusual
benefit of $0.15 related to resolution of an IRS examination;
and
|
·
|
an increase
in Other non-operating income, net as a result of improved market
performance during the third quarter on Rabbi Trust
assets.
|
The updated outlook
for 2009 cash from operations anticipates that the Corporation will make at
least a $1 billion discretionary contribution to the defined benefit pension
plans’ trust during the fourth quarter.
3
2010 FINANCIAL OUTLOOK 1
|
|
(In millions,
except per share data and percentages)
|
2010
Projection
|
Net sales
|
$46,250 - $47,250
|
Segment operating
profit:
|
|
Segment operating profit
|
$5,025 -
$5,125
|
Unallocated corporate
expense, net:
|
|
FAS/CAS pension
adjustment
|
(495)
|
Stock
compensation expense
|
(180)
|
Unusual
items
|
—
|
Other, net
|
(100)
|
4,250
- 4,350
|
|
Interest
Expense
|
(275)
|
Other non-operating income,
net
|
—
|
Earnings before income
taxes
|
$3,975
- $4,075
|
Diluted earnings per
share
|
$7.05
- $7.25
|
Cash from
operations
|
≥
$3,200
|
ROIC2
|
≥
16.5%
|
1 |
All amounts
approximate.
|
2 |
See
discussion of non-GAAP performance measures at the end of this
document.
|
The outlook for
2010 earnings before income taxes and earnings per share assumes that the
Corporation's 2010 non-cash FAS/CAS pension adjustment would be calculated using
a discount rate of 6.125%, that the return on plan assets in 2009 would be
approximately 8.5%, and that the Corporation will make a $1 billion
discretionary contribution to the defined benefit pension plans’ trust in
2009. The outlook for 2010 cash from operations anticipates that the
Corporation will make additional contributions of approximately $1.4 billion to
the defined benefit pension plans’ trust during 2010. The Corporation
anticipates recovering approximately $1 billion during 2010 as CAS cost, with
the remainder being recoverable in future years.
The 2010 non-cash
FAS/CAS pension adjustment and related assumptions will not be finalized until
year-end 2009, consistent with the Corporation's pension plan measurement
date. These assumptions may change and could differ materially at the
year-end measurement date. For example, a 25 basis point change in
the discount rate would result in a $95 million change in the FAS/CAS pension
adjustment. Similarly, a 100 basis point change in the actual return on plan
assets would result in a $10 million change in the FAS/CAS pension adjustment.
The Corporation will update its FAS/CAS pension adjustment and projections for
cash from operations taking into account any changes in required defined benefit
plan funding obligations, as necessary, when it announces 2009 year-end
financial results.
The research and
development (R&D) tax credit expires on Dec. 31, 2009, and has not been
incorporated into our outlook for 2010. The benefit of the R&D tax
credit (approximately $0.11 per share for 2009) will not be incorporated into
our 2010 outlook or results unless it is extended by
Congress.
4
It
is the Corporation's practice not to incorporate adjustments to its outlook for
proposed acquisitions, divestitures, joint ventures, or unusual items until such
transactions have been consummated.
Balanced Cash Deployment
Strategy
The Corporation
continued to execute its balanced cash deployment strategy during the quarter and nine
months ended Sept. 27, 2009 by:
·
|
repurchasing
4.6 million shares at a cost of $354 million during the quarter and 18.3
million shares at a cost of $1.4 billion during the nine month period of
the year;
|
·
|
paying cash
dividends totaling $219 million during the quarter and $668 million during
the nine month period of the year;
|
·
|
investing
$233 million during the quarter and $420 million during the nine month
period of the year for acquisitions of businesses and investments in
affiliates; and
|
·
|
making
capital expenditures of $182 million during the quarter and $481 million
during the nine month period of the
year.
|
Additionally, the
Corporation increased its quarterly dividend 10.5 percent or $0.06 per share.
The new quarterly dividend will be $0.63 per share payable Dec. 31, 2009 to its
holders of record as of the close of business Dec. 1, 2009.
Segment
Results
The Corporation
operates in four principal business segments: Electronic Systems; Information
Systems & Global Services (IS&GS); Aeronautics; and Space
Systems.
5
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)
|
3rd Quarter
|
Year-to-Date
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
sales
|
||||||||||||||||
Electronic
Systems
|
$ | 2,922 | $ | 2,802 | $ | 8,911 | $ | 8,686 | ||||||||
Information Systems & Global Services | 2,977 | 2,950 | 8,756 | 8,312 | ||||||||||||
Aeronautics
|
3,084 | 2,917 | 8,951 | 8,608 | ||||||||||||
Space
Systems
|
2,073 | 1,908 | 6,047 | 5,993 | ||||||||||||
Total
net sales
|
$ | 11,056 | $ | 10,577 | $ | 32,665 | $ | 31,599 | ||||||||
Operating profit
|
||||||||||||||||
Electronic
Systems
|
$ | 389 | $ | 364 | $ | 1,185 | $ | 1,139 | ||||||||
Information Systems & Global Services | 244 | 267 | 734 | 769 | ||||||||||||
Aeronautics
|
397 | 375 | 1,151 | 1,064 | ||||||||||||
Space
Systems
|
236 | 244 | 672 | 743 | ||||||||||||
Segment operating
profit
|
1,266 | 1,250 | 3,742 | 3,715 | ||||||||||||
Unallocated
corporate income (expense), net
|
(181 | ) | (8 | ) | (517 | ) | 68 | |||||||||
Total
operating profit
|
$ | 1,085 | $ | 1,242 | $ | 3,225 | $ | 3,783 |
In our discussion of comparative
results, changes in net sales and operating profit generally are expressed in
terms of volume and/or performance. Volume refers to increases (or
decreases) in sales resulting from varying production activity levels,
deliveries, or service levels on individual contracts. Volume changes
typically include a corresponding change in operating profit based on the
estimated profit rate at completion for a particular contract for design,
development, and production activities. Performance generally refers
to changes in contract profit booking rates. These changes to our
contracts for products usually relate to profit recognition associated with
revisions to total estimated costs at completion of the contracts that reflect
improved (or deteriorated) operating or award fee performance on a particular
contract. Changes in contract profit booking rates on contracts for
products are recognized by recording adjustments in the current period for the
inception-to-date effect of the changes on current and prior
periods. Recognition of the inception-to-date adjustment in the
current or prior periods may affect the comparison of segment operating
results.
6
Electronic
Systems
(In millions, except percentages)
|
3rd Quarter
|
Year-to-Date
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
sales
|
$ | 2,922 | $ | 2,802 | $ | 8,911 | $ | 8,686 | ||||||||
Operating
profit
|
$ | 389 | $ | 364 | $ | 1,185 | $ | 1,139 | ||||||||
Operating
margin
|
13.3 | % | 13.0 | % | 13.3 | % | 13.1 | % |
Net sales for
Electronic Systems increased by 4% for the quarter and 3% for the nine months of
2009 from the comparable 2008 periods. During the quarter, sales increases at
Maritime Systems & Sensors (MS2) and Missiles & Fire Control (M&FC)
more than offset a decline at Platforms & Training (P&T). The increase
at MS2 mainly was due to higher volume on surface naval warfare, tactical
systems and radar systems programs. The increase at M&FC primarily was due
to growth on tactical missile and air defense programs. At P&T, lower volume
on platform integration activities and distribution technology programs
partially was offset by growth on simulation and training
activities.
During the nine
month period, sales increased in all three lines of business. The increase at
M&FC primarily was attributable to higher volume on tactical missile
programs. The increase at MS2 mainly was due to higher volume on surface naval
warfare, tactical systems and radar systems programs, which partially were
offset by declines in integrated defense technology programs. At P&T, higher
volume on simulation and training activities partially was offset by lower
volume on platform integration and distribution technology programs. The
increase in simulation and training also included sales from the first quarter
2009 acquisition of Universal Systems and Technology, Inc.
Operating profit
for Electronic Systems increased by 7% for the quarter and 4% for the nine
months of 2009 from the comparable 2008 periods. During the quarter, an increase
in operating profit at M&FC more than offset declines at MS2 and P&T.
The increase at M&FC mainly was due to higher volume and improved
performance on tactical missile and air defense programs as well as improved
performance on fire control systems. The decrease at MS2 primarily was
attributable to a reduction in the level of favorable performance adjustments in
2009 compared to 2008 on tactical systems and surface naval warfare programs.
The decline at P&T resulted from lower volume on platform integration
activities and a reduction in the level of favorable performance adjustments in
2009 compared to 2008 on distribution technology
programs.
7
During the nine
month period, increases in operating profit at M&FC and P&T more than
offset a decline at MS2. The increase at M&FC mainly was due to higher
volume on tactical missile programs and improved performance on fire control
systems. The increase in P&T’s operating profit primarily was attributable
to improved performance on platform integration activities and the benefit
recognized in the first quarter of 2009 from favorably resolving a simulation
and training contract matter. These increases partially were offset by declines
in volume and a reduction in the level of favorable performance adjustments in
2009 compared to 2008 on distribution technology programs. The decrease at MS2
primarily was attributable to a reduction in the level of favorable performance
adjustments in 2009 compared to 2008 on integrated defense technology and
tactical systems programs.
Information Systems &
Global Services
(In millions, except percentages)
|
3rd Quarter
|
Year-to-Date
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
sales
|
$ | 2,977 | $ | 2,950 | $ | 8,756 | $ | 8,312 | ||||||||
Operating
profit
|
$ | 244 | $ | 267 | $ | 734 | $ | 769 | ||||||||
Operating
margin
|
8.2 | % | 9.1 | % | 8.4 | % | 9.3 | % |
Net sales for
IS&GS increased by 1% for the quarter and 5% for the nine months of 2009
from the comparable 2008 periods. During the quarter, the sales increase
primarily was attributable to higher volume on enterprise civilian services in
Civil. Sales for Defense and Intelligence were relatively unchanged between the
quarters. During the nine month period, increases in Defense and Civil partially
were offset by declines in Intelligence. Defense sales primarily increased due
to higher volume on mission and combat systems activities and readiness and
stability operations. Civil increased principally due to higher volume on
enterprise civilian services. Intelligence sales declined slightly between
periods mainly due to lower volume on enterprise integration
activities.
Operating profit
for IS&GS decreased by 9% for the quarter and 5% for the nine months of 2009
from the comparable 2008 periods. During the quarter, operating
profit declined in Intelligence and Defense and remained unchanged in Civil. The
decrease in Intelligence mainly was due to a reduction in the level of favorable
performance adjustments in 2009 compared to 2008 on security solutions
activities. The decrease in Defense primarily was attributable to performance on
global programs.
8
During the nine
month period, operating profit declines in Civil and Intelligence more than
offset growth in Defense. The decrease in Civil primarily was attributable to
the absence in 2009 of a benefit recognized in the first quarter of 2008 for a
contract restructuring and the absence of a favorable performance adjustment
recognized in the second quarter of 2008, both of which occurred on an
enterprise civilian services program. The decrease in Intelligence mainly was
due to lower volume on enterprise integration activities and a reduction in the
level of favorable performance adjustments in 2009 compared to 2008 on security
solution activities. The increase in Defense mainly was due to volume and
improved performance in mission and combat systems and readiness and stability
operations.
The prior period
amounts for IS&GS have been reclassified to conform to its current lines of
business (Civil, Defense and Intelligence). The realignment had no impact on the
segment’s operating results.
Aeronautics
(In millions, except percentages)
|
3rd Quarter
|
Year-to-Date
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
sales
|
$ | 3,084 | $ | 2,917 | $ | 8,951 | $ | 8,608 | ||||||||
Operating
profit
|
$ | 397 | $ | 375 | $ | 1,151 | $ | 1,064 | ||||||||
Operating
margin
|
12.9 | % | 12.9 | % | 12.9 | % | 12.4 | % |
Net sales for
Aeronautics increased by 6% for the quarter and 4% for the nine months of 2009
from the comparable 2008 periods. In both periods, sales increased in all
three lines of business. The increase in Combat Aircraft principally was due to
higher volume on the F-35 program, which more than offset lower volume on F-22
and F-16 programs. The increase in Air Mobility primarily was attributable to
higher volume on the C-130J program, including deliveries and support
activities. There were four C-130J deliveries in the third quarter of 2009 and
three in the comparable 2008 period. There were ten C-130J deliveries
in the nine month period of 2009 and nine in the comparable 2008 period. The
increase in Other Aeronautics Programs mainly was due to higher volume on
advanced development programs and P-3 programs, which partially were offset by
declines in other sustainment activities.
9
Operating profit
for Aeronautics increased by 6% for the quarter and 8% for the nine months of
2009 from the comparable 2008 periods. In both periods, the growth in
operating profit primarily was due to increases in Air Mobility and Other
Aeronautics Programs, which partially were offset by declines in Combat
Aircraft. The increase in Air Mobility operating profit primarily was due to
higher volume on C-130J programs and improved performance on C-130 support
programs. During the nine month period, Air Mobility’s operating
profit also increased due to improved performance on C-5 programs. The increase
in Other Aeronautics Programs mainly was attributable to improved performance in
sustainment activities and a favorable contract restructuring of a P-3
modification contract. The decrease in Combat Aircraft operating profit
primarily was due to lower volume on the F-22 program and a reduction in the
level of favorable performance adjustments in 2009 compared to 2008 on F-16
programs. These decreases more than offset increased operating profit resulting
from higher volume and improved performance on the F-35 program.
Space
Systems
(In millions, except percentages)
|
3rd Quarter
|
Year-to-Date
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
sales
|
$ | 2,073 | $ | 1,908 | $ | 6,047 | $ | 5,993 | ||||||||
Operating
profit
|
$ | 236 | $ | 244 | $ | 672 | $ | 743 | ||||||||
Operating
margin
|
11.4 | % | 12.8 | % | 11.1 | % | 12.4 | % |
Net sales for Space
Systems increased by 9% for the quarter and 1% for the nine months of 2009 from
the comparable 2008 periods. During the quarter, sales growth at
Satellites and Space Transportation more than offset a decline in Strategic
& Defensive Missile Systems (S&DMS). The sales growth in
Satellites was due to higher volume in commercial satellite and government
satellite activities. There was one commercial satellite delivery in the third
quarter of 2009. There were no commercial satellite deliveries during the third
quarter of 2008. The increase in Space Transportation principally was due to
higher volume on the Orion program in 2009. S&DMS' sales
decreased mainly due to lower volume on defensive missile programs.
During the nine
month period, growth in Satellites more than offset declines in sales at Space
Transportation and S&DMS. The sales growth in Satellites was due to higher
volume in government satellite activities, which partially was offset by lower
volume in commercial satellite activities. There was one commercial satellite
delivery during the nine month period in 2009 and two deliveries in the
comparable 2008 period. The decrease in Space Transportation primarily was due
to lower volume in commercial launch vehicle activities in 2009. There were no
commercial launches during the nine month period of 2009 and one during the nine
month period of 2008. S&DMS' sales decreased mainly due to lower volume on
defensive missile programs, which more than offset growth in strategic missile
programs.
10
Operating profit
for Space Systems decreased by 3% for the quarter and 10% for the nine months of
2009 from the comparable 2008 periods. During the quarter, declines
in operating profit in Satellites and S&DMS partially were offset by growth
in Space Transportation. Satellites' operating profit decreased primarily due to
the absence of favorable 2008 performance adjustments on government satellite
programs in 2009, which more than offset an increase associated with the 2009
commercial satellite delivery. S&DMS’ operating profit declined slightly
between periods. In Space Transportation, the increase mainly was attributable
to higher equity earnings on the United Launch Alliance joint venture and volume
on the Orion program.
During the nine
month period, operating profit declined in all three lines of business. Space
Transportation’s operating profit decrease mainly was attributable to the
absence in 2009 of a benefit recognized in 2008 from the successful negotiations
of a terminated commercial launch vehicle contract and lower equity earnings in
2009 on the United Launch Alliance joint venture. The decrease in
S&DMS’ operating profit primarily was attributable to a reduction in the
level of favorable performance adjustments in 2009 compared to 2008 on strategic
missile programs. In Satellites, the operating profit decrease mainly
was due to lower volume in commercial satellite activities, which partially was
offset by higher volume on government satellite activities.
Unallocated Corporate Income
(Expense), Net
(In
millions)
|
3rd Quarter
|
Year-to-Date
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
FAS/CAS
pension adjustment
|
$ | (113 | ) | $ | 32 | $ | (342 | ) | $ | 96 | ||||||
Stock
compensation expense
|
(40 | ) | (40 | ) | (112 | ) | (115 | ) | ||||||||
Unusual
items
|
— | 44 | — | 145 | ||||||||||||
Other,
net
|
(28 | ) | (44 | ) | (63 | ) | (58 | ) | ||||||||
Unallocated
corporate income (expense), net
|
$ | (181 | ) | $ | (8 | ) | $ | (517 | ) | $ | 68 |
Consistent with the
manner in which the Corporation’s business segment operating performance is
evaluated by senior management, certain items are excluded from the business
segment results and included in “Unallocated corporate income (expense),
net.” See the Corporation’s 2008 Form 10-K for a description of
“Unallocated corporate income (expense), net,” including the FAS/CAS pension
adjustment.
11
The FAS/CAS pension
adjustment (calculated as the difference between FAS pension expense and
the CAS cost amounts) resulted in an expense in 2009 compared to income in 2008
due to the negative actual return on plan assets in 2008 and a lower discount
rate at Dec. 31, 2008. This trend is consistent with the Corporation’s
previously disclosed assumptions used to compute these amounts.
For purposes of
segment reporting, unusual items are included in “Unallocated corporate income
(expense), net”:
2009 —
· |
There were no
unusual items affecting operating profit during the nine months of the
year.
|
In
the third quarter, we resolved an IRS examination of our U.S. Federal Income Tax
Returns for the years 2005-2007. As a result, we recognized an unusual tax
benefit that reduced our income tax expense and increased our net earnings by
$58 million ($0.15 per share) during the quarter and nine month periods of
2009.
2008 —
·
|
A third
quarter gain, net of state income taxes, of $44 million representing the
recognition of a portion of the deferred net gain from the 2006 sale of
the Corporation’s ownership interest in Lockheed Khrunichev Energia
International, Inc. (LKEI) and International Launch Services, Inc.
(ILS). At the time of the sale, the Corporation deferred
recognition of any gains pending the expiration of its responsibility to
refund advances for future launch
services.
|
·
|
Second
quarter earnings, net of state income taxes, of $85 million associated
with reserves related to various land sales that are no longer required.
Reserves were recorded at the time of each land sale based on the U.S.
Government’s assertion of its right to share in the sale proceeds. This
matter was favorably settled with the U.S. Government in the second
quarter. This item increased net earnings by $56 million ($0.14 per share)
during the second quarter of 2008;
and
|
12
·
|
A first
quarter gain, net of state income taxes, of $16 million representing the
recognition of a portion of the deferred net gain from the 2006 sale of
the Corporation’s ownership interest in LKEI and ILS. This item increased
net earnings by $10 million ($0.02 per share) during the first quarter of
2008.
|
Recognition of the
deferred net gain increased net earnings by $28 million ($0.07 per share) during
the third quarter of 2008. This item, along with the second quarter reserve
reversal and the first quarter gain increased net earnings by $94 million ($0.23
per share) during the nine months ended Sept. 28, 2008.
Income
Taxes
Our effective
income tax rates were 25.7% and 29.2% for the quarter and nine months ended
Sept. 27, 2009, and 31.6% and 32.2% for the quarter and nine months ended Sept.
28, 2008. These rates were lower than the statutory rate of 35% for all
periods due to tax benefits for U.S. manufacturing activities and dividends
related to our employee stock ownership plans.
The effective tax
rates for the third quarter and first nine months of 2009 were lower than the
comparable periods in 2008, primarily due to the resolution of an IRS
examination in the third quarter of 2009 that reduced income tax expense by $58
million and the extension of the research and development (R&D) credit as a
result of the enactment on Oct. 3, 2008, of the Emergency Economic Stabilization
Act (EESA) of 2008. Although EESA retroactively extended the R&D
credit for two years from Jan. 1, 2008 to Dec. 31, 2009, we did not recognize
the benefit until EESA became law in the fourth quarter of 2008. In addition to
these items, the effective tax rate for the nine month period of 2009 was
affected by the partial elimination of a valuation allowance previously provided
against certain foreign company deferred tax assets arising from carryforwards
of unused tax benefits.
13
Headquartered in
Bethesda, Md., Lockheed Martin is a global security company that employs about
140,000 people worldwide and is principally engaged in the research, design,
development, manufacture, integration and sustainment of advanced technology
systems, products and services. The Corporation reported 2008 sales of $42.7
billion.
###
NEWS MEDIA CONTACT: | Jeff Adams, 301/897-6308 |
INVESTOR RELATIONS CONTACT: | Jerry Kircher, 301/897-6584 |
Web site: www.lockheedmartin.com
Conference
call: Lockheed
Martin will webcast the earnings conference call (listen-only mode) at 11:00 a.m.
E.D.T. on Oct. 20, 2009. A live audio broadcast,
including relevant charts, will be available on the Investor Relations page of
the company’s web site at: http://www.lockheedmartin.com/investor.
FORWARD-LOOKING
STATEMENTS
Statements in this
release that are "forward-looking statements" are based on Lockheed Martin’s
current expectations and assumptions. Forward-looking statements in this
release include estimates of future sales, earnings and cash flow. These
statements are not guarantees of future performance and are subject to risks and
uncertainties. Actual results could differ materially due to factors such
as: the availability of government funding for our products and services both
domestically and internationally; changes in government and customer priorities
and requirements (including changes to respond to the priorities of Congress and
the Administration, budgetary constraints, and cost-cutting initiatives); the
impact of economic recovery and stimulus plans and continued military operations
in Iraq and Afghanistan on funding for existing defense programs; the award or
termination of contracts; actual returns (or losses) on pension plan assets,
interest and discount rates and other changes that may affect pension plan
assumptions; the effect of capitalization changes (such as share repurchase
activity, advance pension funding, option exercises, or debt levels) on earnings
per share; difficulties in developing and producing operationally advanced
technology systems; the timing and customer acceptance of product deliveries;
materials availability and performance by key suppliers, subcontractors and
customers; charges from any future impairment reviews that may result in the
recognition of losses and a reduction in the book value of goodwill or other
long-term assets; the future impact of legislation, rulemaking, and changes in
accounting, tax, defense procurement, or export policies; the future impact of
acquisitions or divestitures, joint ventures or teaming arrangements; the
outcome of legal proceedings and other contingencies (including lawsuits,
government investigations or audits, and environmental remediation efforts); the
competitive environment for the Corporation’s products and services; and
economic, business and political conditions domestically and
internationally.
14
These are only some
of the factors that may affect the forward-looking statements contained in this
press release. For further information regarding risks and uncertainties
associated with Lockheed Martin’s business, please refer to the Corporation’s
SEC filings, including the “Management’s Discussion and Analysis of Financial
Condition and Results of Operations,” “Risk Factors,” and “Legal Proceedings”
sections of the Corporation’s 2008 annual report on Form 10-K, which may be
obtained at the Corporation’s website: http://www.lockheedmartin.com
It
is the Corporation’s policy to only update or reconfirm its financial
projections by issuing a press release. The Corporation generally plans to
provide a forward-looking outlook as part of its quarterly earnings release but
reserves the right to provide an outlook at different intervals or to revise its
practice in future periods. All information in this release is as of Oct.
19, 2009. Lockheed Martin undertakes no duty to update any forward-looking
statement to reflect subsequent events, actual results or changes in the
Corporation’s expectations. We also disclaim any duty to comment upon or
correct information that may be contained in reports published by investment
analysts or others.
NON-GAAP
PERFORMANCE MEASURES
The Corporation
believes that reporting ROIC provides investors with greater visibility into how
effectively Lockheed Martin uses the capital invested in its
operations. The Corporation uses ROIC to evaluate multi-year
investment decisions and as a long-term performance measure, and also uses ROIC
as a factor in evaluating management performance for incentive compensation
purposes. ROIC is not a measure of financial performance under
generally accepted accounting principles, and may not be defined and calculated
by other companies in the same manner. ROIC should not be considered
in isolation or as an alternative to net earnings as an indicator of
performance.
15
The
Corporation calculates ROIC as follows:
Net
earnings plus after-tax interest expense divided by average invested capital
(stockholders’ equity plus debt), after adjusting stockholders’ equity by adding
back adjustments related to postretirement benefit plans.
(In millions,
except percentages)
|
2010 Outlook
|
2009
Outlook
|
2009 Prior
|
|||
NET
EARNINGS INTEREST
EXPENSE (MULTIPLIED BY 65%) 1 |
Combined
|
Combined
|
Combined
|
|||
RETURN
|
≥
$2,900
|
≥ $3,100
|
≥ $3,000
|
|||
AVERAGE DEBT
2,5
AVERAGE EQUITY
3,
5
AVERAGE BENEFIT
PLAN
ADJUSTMENTS
4,5
|
Combined
|
Combined
|
Combined
|
|||
AVERAGE INVESTED CAPITAL
|
≤
$17,600
|
≤
$15,900
|
≤ $16,200
|
|||
|
||||||
RETURN ON INVESTED CAPITAL
|
≥ 16.5%
|
≥ 19.5%
|
≥
18.5%
|
1 |
Represents
after-tax interest expense utilizing the federal statutory rate of 35%.
|
2 |
Debt consists
of long-term debt, including current maturities, and short-term borrowings
(if any).
|
3 |
Equity
includes non-cash adjustments, primarily to recognize the funded /
unfunded status of our benefit
plans.
|
4 |
Average
Benefit Plan Adjustments reflect the cumulative value of entries
identified in our Statement of Stockholders’ Equity discussed in
Note 3.
|
5 |
Yearly
averages are calculated using balances at the start of the year and at the
end of each quarter.
|
16
LOCKHEED MARTIN
CORPORATION
|
||||||||||||||||
Condensed Consolidated Statement
of Earnings
|
||||||||||||||||
Unaudited
|
||||||||||||||||
(In millions, except per share
data and percentages)
|
||||||||||||||||
THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||||||
September 27, 2009(a)
|
September 28, 2008(a)
|
September 27, 2009(a)
|
September 28, 2008(a)
|
|||||||||||||
Net sales
|
$ | 11,056 | $ | 10,577 | $ | 32,665 | $ | 31,599 | ||||||||
Cost of
sales
|
10,060 | 9,455 | 29,652 | 28,217 | ||||||||||||
996 | 1,122 | 3,013 | 3,382 | |||||||||||||
Other income (expense),
net
|
89 | 120 | 212 | 401 | ||||||||||||
Operating
profit
|
1,085 | 1,242 | 3,225 | 3,783 | ||||||||||||
Interest
expense
|
67 | 85 | 219 | 264 | ||||||||||||
Other non-operating income
(expense), net
|
54 | (13 | ) | 98 | 14 | |||||||||||
Earnings before income
taxes
|
1,072 | 1,144 | 3,104 | 3,533 | ||||||||||||
Income tax
expense
|
275 | 362 | 907 | 1,139 | ||||||||||||
Net
earnings
|
$ | 797 | $ | 782 | $ | 2,197 | $ | 2,394 | ||||||||
Effective tax
rate
|
25.7 | % | 31.6 | % | 29.2 | % | 32.2 | % | ||||||||
Earnings per common
share:
|
||||||||||||||||
Basic
|
$ | 2.09 | $ | 1.97 | $ | 5.67 | $ | 5.97 | ||||||||
Diluted
|
$ | 2.07 | $ | 1.92 | $ | 5.61 | $ | 5.82 | ||||||||
Average number of shares
outstanding
|
||||||||||||||||
Basic
|
381.4 | 397.4 | 387.2 | 401.1 | ||||||||||||
Diluted
|
385.5 | 407.1 | 391.3 | 411.1 | ||||||||||||
Common shares reported in
stockholders' equity at quarter end:
|
378.2 | 398.2 |
(a) |
It
is our practice to close our books and records on the Sunday prior to the
end of the calendar quarter. The interim financial statements and tables
of financial information included herein are labeled based on that
convention.
|
17
LOCKHEED MARTIN
CORPORATION
|
||||||||||||||||||
Net Sales, Operating Profit and
Margins
|
||||||||||||||||||
Unaudited
|
||||||||||||||||||
(In millions, except
percentages)
|
THREE MONTHS
ENDED
|
NINE MONTHS
ENDED
|
||||||||||||||||||||||
September 27,
2009
|
September 28,
2008
|
% Change
|
September 27,
2009
|
September 28,
2008
|
% Change
|
||||||||||||||||||
Net sales
|
|||||||||||||||||||||||
Electronic
Systems
|
$ | 2,922 | $ | 2,802 |
4%
|
$ | 8,911 | $ | 8,686 |
3%
|
|||||||||||||
Information Systems & Global
Services
|
2,977 | 2,950 |
1
|
8,756 | 8,312 |
5
|
|||||||||||||||||
Aeronautics
|
3,084 | 2,917 |
6
|
8,951 | 8,608 |
4
|
|||||||||||||||||
Space
Systems
|
2,073 | 1,908 |
9
|
6,047 | 5,993 |
1
|
|||||||||||||||||
Total net
sales
|
$ | 11,056 | $ | 10,577 |
5%
|
$ | 32,665 | $ | 31,599 |
3%
|
|||||||||||||
Operating
profit
|
|||||||||||||||||||||||
Electronic
Systems
|
$ | 389 | $ | 364 |
7%
|
$ | 1,185 | $ | 1,139 |
4%
|
|||||||||||||
Information Systems & Global
Services
|
244 | 267 |
(9)
|
734 | 769 |
(5)
|
|||||||||||||||||
Aeronautics
|
397 | 375 |
6
|
1,151 | 1,064 |
8
|
|||||||||||||||||
Space
Systems
|
236 | 244 |
(3)
|
672 | 743 |
(10)
|
|||||||||||||||||
Segment operating
profit
|
1,266 | 1,250 |
1
|
3,742 | 3,715 |
1
|
|||||||||||||||||
Unallocated corporate (expense)
income, net
|
(181 | ) | (8 | ) | (517 | ) | 68 | ||||||||||||||||
$ | 1,085 | $ | 1,242 |
(13)%
|
$ | 3,225 | $ | 3,783 | (15)% | ||||||||||||||
Margins:
|
|||||||||||||||||||||||
Electronic
Systems
|
13.3 | % | 13.0 | % | 13.3 | % | 13.1 | % | |||||||||||||||
Information Systems & Global
Services
|
8.2 | 9.1 | 8.4 | 9.3 | |||||||||||||||||||
Aeronautics
|
12.9 | 12.9 | 12.9 | 12.4 | |||||||||||||||||||
Space
Systems
|
11.4 | 12.8 | 11.1 | 12.4 | |||||||||||||||||||
Total operating
segments
|
11.5 | 11.8 | 11.5 | 11.8 | |||||||||||||||||||
Total
consolidated
|
9.8 | % | 11.7 | % | 9.9 | % | 12.0 | % |
18
LOCKHEED MARTIN
CORPORATION
|
|||||||||||||
Selected Financial
Data
|
|||||||||||||
Unaudited
|
|||||||||||||
(In millions, except per share
data)
|
THREE MONTHS
ENDED
|
NINE MONTHS
ENDED
|
|||||||||||||||
September 27,
2009
|
September 28,
2008
|
September 27,
2009
|
September 28,
2008
|
|||||||||||||
Unallocated corporate (expense)
income, net
|
||||||||||||||||
FAS/CAS pension
adjustment
|
$ | (113 | ) | $ | 32 | $ | (342 | ) | $ | 96 | ||||||
Stock compensation
expense
|
(40 | ) | (40 | ) | (112 | ) | (115 | ) | ||||||||
Unusual
items
|
—
|
44 |
—
|
145 | ||||||||||||
Other,
net
|
(28 | ) | (44 | ) | (63 | ) | (58 | ) | ||||||||
Unallocated corporate
(expense) income, net
|
$ | (181 | ) | $ | (8 | ) | $ | (517 | ) | $ | 68 | |||||
THREE MONTHS
ENDED
|
NINE MONTHS
ENDED
|
|||||||||||||||
September 27,
2009
|
September 28,
2008
|
September 27,
2009
|
September 28,
2008
|
|||||||||||||
FAS/CAS pension
adjustment
|
||||||||||||||||
FAS pension
expense
|
$ | (259 | ) | $ | (116 | ) | $ | (777 | ) | $ | (347 | ) | ||||
Less: CAS
costs
|
(146 | ) | (148 | ) | (435 | ) | (443 | ) | ||||||||
FAS/CAS pension adjustment
- (expense) income
|
$ | (113 | ) | $ | 32 | $ | (342 | ) | $ | 96 |
THREE MONTHS ENDED SEPTEMBER 27,
2009
|
NINE MONTHS ENDED SEPTEMBER 27,
2009
|
|||||||||||||||||||||||
Operating
profit
|
Net
earnings
|
Earnings
per share
|
Operating
profit
|
Net
earnings
|
Earnings
per share
|
|||||||||||||||||||
Unusual Item -
2009
|
||||||||||||||||||||||||
Resolution of 2005 - 2007 IRS
examination
|
$ |
—
|
$ | 58 | $ | 0.15 | $ |
—
|
$ | 58 | $ | 0.15 | ||||||||||||
$ |
—
|
$ | 58 | $ | 0.15 | $ |
—
|
$ | 58 | $ | 0.15 | |||||||||||||
THREE MONTHS ENDED SEPTEMBER 28,
2008
|
NINE MONTHS ENDED SEPTEMBER 28,
2008
|
|||||||||||||||||||||||
Operating
profit
|
Net
earnings
|
Earnings
per share
|
Operating
profit
|
Net
earnings
|
Earnings
per share
|
|||||||||||||||||||
Unusual Items -
2008
|
||||||||||||||||||||||||
ILS/LKEI deferred
gain
|
$ | 44 | $ | 28 | $ | 0.07 | $ | 60 | $ | 38 | $ | 0.09 | ||||||||||||
Earnings associated with prior
years' land sales
|
—
|
—
|
—
|
85 | 56 | 0.14 | ||||||||||||||||||
$ | 44 | $ | 28 | $ | 0.07 | $ | 145 | $ | 94 | $ | 0.23 |
19
LOCKHEED MARTIN
CORPORATION
|
|||||||||||||
Selected Financial
Data
|
|||||||||||||
Unaudited
|
|||||||||||||
(In
millions)
|
THREE MONTHS
ENDED
|
NINE MONTHS
ENDED
|
|||||||||||||||
September 27,
2009
|
September 28,
2008
|
September 27,
2009
|
September 28,
2008
|
|||||||||||||
Depreciation and amortization of
plant and equipment
|
||||||||||||||||
Electronic
Systems
|
$ | 60 | $ | 69 | $ | 177 | $ | 189 | ||||||||
Information Systems & Global
Services
|
18 | 16 | 50 | 49 | ||||||||||||
Aeronautics
|
49 | 52 | 143 | 137 | ||||||||||||
Space
Systems
|
46 | 36 | 131 | 109 | ||||||||||||
Segments
|
173 | 173 | 501 | 484 | ||||||||||||
Unallocated corporate expense,
net
|
15 | 14 | 43 | 38 | ||||||||||||
Total depreciation and
amortization of plant and
equipment
|
$ | 188 | $ | 187 | $ | 544 | $ | 522 | ||||||||
THREE MONTHS
ENDED
|
NINE MONTHS
ENDED
|
|||||||||||||||
September 27,
2009
|
September 28,
2008
|
September 27,
2009
|
September 28,
2008
|
|||||||||||||
Amortization of purchased
intangibles
|
||||||||||||||||
Electronic
Systems
|
$ | 2 | $ | 2 | $ | 7 | $ | 8 | ||||||||
Information Systems & Global
Services
|
10 | 10 | 32 | 33 | ||||||||||||
Aeronautics
|
13 | 12 | 37 | 38 | ||||||||||||
Space
Systems
|
2 | 1 | 5 | 3 | ||||||||||||
Segments
|
27 | 25 | 81 | 82 | ||||||||||||
Unallocated corporate expense,
net
|
—
|
2 |
—
|
8 | ||||||||||||
Total amortization of
purchased intangibles
|
$ | 27 | $ | 27 | $ | 81 | $ | 90 |
20
LOCKHEED MARTIN
CORPORATION
|
|||||||
Condensed
Consolidated Balance Sheet
|
|||||||
Unaudited
|
|||||||
(In
millions)
|
SEPTEMBER
27,
|
DECEMBER
31,
|
|||||||
2009
|
2008
|
|||||||
Assets
|
||||||||
Cash and cash
equivalents
|
$ | 2,709 | $ | 2,168 | ||||
Receivables
|
6,067 | 5,296 | ||||||
Inventories
|
2,079 | 1,902 | ||||||
Deferred income
taxes
|
747 | 755 | ||||||
Other current
assets
|
841 | 562 | ||||||
Total current
assets
|
12,443 | 10,683 | ||||||
Property, plant and equipment,
net
|
4,430 | 4,488 | ||||||
Goodwill
|
9,944 | 9,526 | ||||||
Purchased intangibles,
net
|
338 | 355 | ||||||
Prepaid pension
asset
|
135 | 122 | ||||||
Deferred income
taxes
|
4,596 | 4,651 | ||||||
Other
assets
|
3,856 | 3,614 | ||||||
Total
assets
|
$ | 35,742 | $ | 33,439 | ||||
Liabilities and Stockholders'
Equity
|
||||||||
Accounts
payable
|
$ | 2,245 | $ | 2,030 | ||||
Customer advances and amounts in
excess of costs incurred
|
4,934 | 4,535 | ||||||
Other current
liabilities
|
4,162 | 3,735 | ||||||
Current maturities of long-term
debt
|
242 | 242 | ||||||
Total current
liabilities
|
11,583 | 10,542 | ||||||
Long-term debt,
net
|
3,563 | 3,563 | ||||||
Accrued pension
liabilities
|
12,793 | 12,004 | ||||||
Other postretirement benefit and
other noncurrent liabilities
|
4,663 | 4,465 | ||||||
Stockholders'
equity
|
3,140 | 2,865 | ||||||
Total
liabilities and stockholders' equity
|
$ | 35,742 | $ | 33,439 | ||||
Total debt-to-capitalization
ratio:
|
55 | % | 57 | % |
21
LOCKHEED MARTIN
CORPORATION
|
|||||||
Condensed Consolidated
Statement of Cash Flows
|
|||||||
Unaudited
|
|||||||
(In
millions)
|
NINE MONTHS
ENDED
|
||||||||
September 27,
2009
|
September 28,
2008
|
|||||||
Operating
Activities
|
||||||||
Net
earnings
|
$ | 2,197 | $ | 2,394 | ||||
Adjustments to reconcile net
earnings to net cash provided by
|
||||||||
operating
activities:
|
||||||||
Depreciation and
amortization of plant and equipment
|
544 | 522 | ||||||
Amortization of
purchased intangibles
|
81 | 90 | ||||||
Stock-based
compensation
|
112 | 115 | ||||||
Excess tax benefits on
stock compensation
|
(16 | ) | (90 | ) | ||||
Changes in operating
assets and liabilities:
|
||||||||
Receivables
|
(720 | ) | (426 | ) | ||||
Inventories
|
(107 | ) | (18 | ) | ||||
Accounts
payable
|
189 | (141 | ) | |||||
Customer
advances and amounts in excess of costs incurred
|
350 | 91 | ||||||
Other
|
1,148 | 887 | ||||||
Net cash provided by operating
activities (a)
|
3,778 | 3,424 | ||||||
Investing
Activities
|
||||||||
Expenditures for property, plant
and equipment
|
(481 | ) | (503 | ) | ||||
Net proceeds from (payments for)
short-term investment transactions
|
(389 | ) | 262 | |||||
Acquisitions of businesses /
investments in affiliates
|
(420 | ) | (195 | ) | ||||
Other
|
11 | (27 | ) | |||||
Net cash used for investing
activities
|
(1,279 | ) | (463 | ) | ||||
Financing
Activities
|
||||||||
Repurchases of common
stock
|
(1,362 | ) | (2,338 | ) | ||||
Issuances of common stock and
related amounts
|
32 | 242 | ||||||
Excess tax benefits on stock
compensation
|
16 | 90 | ||||||
Common stock
dividends
|
(668 | ) | (510 | ) | ||||
Issuance of long-term debt and
related costs
|
—
|
491 | ||||||
Repayments of long-term
debt
|
—
|
(1,103 | ) | |||||
Net cash used for financing
activities
|
(1,982 | ) | (3,128 | ) | ||||
Effect of exchange rate changes on
cash and cash equivalents (a)
|
24 | (18 | ) | |||||
Net increase (decrease) in cash
and cash equivalents
|
541 | (185 | ) | |||||
Cash and cash equivalents at
beginning of period
|
2,168 | 2,648 | ||||||
Cash and cash equivalents at end
of period
|
$ | 2,709 | $ | 2,463 |
(a) |
In
the fourth quarter of 2008, the Corporation reclassified the effect of
exchange rate changes on cash from “Cash from operations” to a separate
caption in the Statement of Cash Flows. Accordingly, the prior period
amount now reflects this
presentation.
|
22
|
LOCKHEED MARTIN
CORPORATION
|
|||||||||||
Condensed
Consolidated Statement of Stockholders' Equity
|
|||||||||||
Unaudited
|
|||||||||||
(In millions, except per share
data)
|
Accumulated
|
||||||||||||||||||||
Additional
|
Other
|
Total
|
||||||||||||||||||
Common
|
Paid-In
|
Retained
|
Comprehensive
|
Stockholders'
|
||||||||||||||||
Stock
|
Capital
|
Earnings
|
Loss
|
Equity
|
||||||||||||||||
Balance at December 31,
2008
|
$ | 393 | $ |
—
|
$ | 11,621 | $ | (9,149 | ) | $ | 2,865 | |||||||||
Net
earnings
|
2,197 | 2,197 | ||||||||||||||||||
Common stock dividends declared
(a)
|
(908 | ) | (908 | ) | ||||||||||||||||
Stock-based awards and ESOP
activity
|
3 | 315 | 318 | |||||||||||||||||
Common stock repurchases
(b)
|
(18 | ) | (315 | ) | (1,029 | ) | (1,362 | ) | ||||||||||||
Other comprehensive
income
|
30 | 30 | ||||||||||||||||||
Balance at September 27,
2009
|
$ | 378 | $ |
—
|
$ | 11,881 | $ | (9,119 | ) | $ | 3,140 |
(a) |
Includes
dividends ($0.57 per share) declared and paid in the first, second and
third quarters. This amount also includes a dividend ($0.63 per
share) that was declared on September 24, 2009 and is payable on December
31, 2009 to shareholders of record on December 1,
2009.
|
||||||||||||||||
(b) |
The
Corporation repurchased 4.6 million shares for $354 million during the
third quarter. Year-to-date, the Corporation has repurchased 18.3 million
common shares for $1.4 billion. The Corporation has 35.4 million shares
remaining under its share repurchase program, including the 20.0 million
of additional shares that were authorized for repurchase under the program
in September 2009.
|
23
LOCKHEED MARTIN
CORPORATION
|
|||||||
Operating
Data
|
|||||||
Unaudited
|
September
27,
|
December
31,
|
||||||||
2009
|
2008
|
||||||||
Backlog
|
|||||||||
(In
millions)
|
|||||||||
Electronic
Systems
|
$ | 20,500 |
1
|
$ | 22,500 | ||||
Information Systems & Global
Services
|
12,000 |
2
|
13,300 | ||||||
Aeronautics
|
25,900 | 27,200 | |||||||
Space
Systems
|
18,000 | 17,900 | |||||||
Total
|
$ | 76,400 | $ | 80,900 | |||||
1 Reflects the termination for
convenience of the VH-71 program, a $985 million reduction of
backlog.
|
|||||||||
2 Reflects the termination for
convenience of the TSAT Mission Operations System (TMOS) program, a $1,600
million reduction of backlog.
|
THREE MONTHS
ENDED
|
NINE MONTHS
ENDED
|
||||||||
Aircraft
Deliveries
|
September 27,
2009
|
September 28,
2008
|
September 27,
2009
|
September 28,
2008
|
|||||
F-16
|
8
|
7
|
24
|
23
|
|||||
F-22
|
4
|
7
|
14
|
17
|
|||||
C-130J
|
4
|
3
|
10
|
9
|
24