Lockheed Martin Corporation today reported second quarter 2012 net sales of $11.9 billion compared to $11.5 billion in 2011. Net earnings from continuing operations for the second quarter of 2012 were $781 million, or $2.38 per diluted share showing a small increase over the second quarter of 2011. “Our solid performance in the second quarter is a result of our responsive strategy and dedicated team that focus on delivering value to our customers and shareholders,” said Bob Stevens, Lockheed Martin chairman and chief executive officer. “While the threat of sequestration has created uncertainty for our industry, we are maintaining an unwavering commitment to program execution and cost reduction throughout the organization.” Stevens added.
The Aeronautics business segment increased $18 million in the quarter (1% over Q2/2011), primarily due to higher volumes in the fighter aircraft business. The company attributed this increase to higher net sales of approximately $200 million from increased production volume on F-35 Low Rate Initial Production (LRIP) contracts. This amount was partially offset by Partially offsetting lower net sales of approximately $140 million from the F-35 development contract, principally due to the inception-to-date effect of reducing the profit booking rate and lower volume. The workers strike has also erodded the profit in the F-35 operations. About $130 million was attributed to F-16 programs, primarily as a result of increased aircraft deliveries (10 F-16 aircraft delivered in the second quarter of 2012 compared to seven in the same 2011 period); approximately $40 million from the F-22 program due principally to decreased production as final aircraft deliveries were completed in the second quarter of 2012.
The transport aircraft remained stable in the C-130 programs, but since no C-5M aircraft were delivered in the second quarter C-5M was lower compared to the second quarter last year.
Net sales of the Electronic Systems business segment increased $86 million, or 2 percent, during the second quarter of 2012 as compared to the corresponding period in 2011. The increase was attributable to higher volume and risk retirements of approximately $245 million from ship and aviation programs including Persistent Threat Detection System (PTDS), Littoral Combat Ship (LCS) and MH-60 and about $65 million from tactical missile programs (Multiple Launch Rocket System (MLRS) and Javelin. On the down side, reduced volumes incurred in air defense programs like Patriot Advanced Capability-3 (PAC-3) and Terminal High Altitude Area Defense (THAAD), fire control systems programs such as Sniper, Target Acquisition Designation Sight/Pilot Night Vision Sensor (TADS/PNVS), Aegis and DDG-1000.