Lockheed Martin Reports Double-Digit Sales Increase
Lockheed Martin continues to see sales increases despite the COVID-19 pandemic. On Monday, the company reported Second Quarter (Q2) 2020 net sales of $16.2 billion, compared to $14.4 billion in Q2 2019 — a 12.5% increase. Lockheed Martin reported $1.6 billion in net earnings for Q2, up from $1.4 billion in 2019.
Net sales were up in the Space segment as well, with roughly $2.9 billion in Q2 net sales, up from $2.7 billion in Q2 2019 — about a 7% increase. Lockheed Martin attributed the increase to higher net sales of approximately $90 million for government satellite programs, primarily Next Generation Overhead Persistent Infrared; and about $85 million for strategic and missile defense programs, primarily hypersonic development programs.
Lockheed Martin even boosted its current guidance after slightly decreasing its net sales predictions in April’s Q1 results. The company now projects $63.5 billion to $65 billion in sales for 2020, ahead of the January projection of $62.75 billion to $64.25 billion.
Yet the company said the pandemic has presented “unprecedented” challenges and the ultimate impact of COVID-19 remains uncertain. Lockheed Martin has been affected primarily by increased coronavirus-related costs, delays in supplier deliveries, impacts of travel restrictions, access to some locations, and the impacts of remote work and adjusted work schedules.
“I’m pleased to see continued strong operational and financial results this quarter as we remain focused on performing with excellence for our customers while protecting the well-being of our employees and keeping our supply chain strong during this global pandemic,” said James Taiclet, Lockheed Martin president and CEO. “Our dedicated Lockheed Martin team, and strong portfolio, coupled with supportive governmental actions have positioned us to deliver vital national security solutions for our country and international partners, and long-term value for our shareholders.”
This follows a strong Q1, in which Lockheed Martin saw about a 9.8% increase in net sales compared to 2019.