Lockheed Martin Space Sees Government Business Boost in Q3
Lockheed Martin Space continues to benefit from increased government spending, as the company reported a 6% increase in 2020 Third Quarter (Q3) net space sales totaling $163 million. Approximately $90 million of its space sales came from higher volume on government satellite programs such as the Next Generation Overhead Persistent Infrared (Next Gen OPIR) system.
Though net sales increased, Lockheed Martin Space reported a 20% Year-Over-Year (YOY), $61 million decrease in operational profits due to lower equity earnings from the corporation’s investment in United Launch Alliance (ULA) and lower risk retirements, primarily involving its Advanced Extremely High Frequency (AEHF) satellites. Most of Lockheed Martin Space’s equity earnings come from ULA. These earnings were $5 million in the Third Quarter of 2020 compared to $55 million during the same period last year.
“These decreases were partially offset by an increase of approximately $15 million for commercial satellite programs due to charges recorded for performance matters in 2019 not repeated in 2020,” Lockheed Martin said in its Q3 report.
Through three quarters, Lockheed Martin Space remains approximately $620 million ahead in net sales from where it stood this time last year.
Overall, Lockheed Martin Corp. reported $16.5 billion in Q3 2020 net sales, compared to $15.2 billion in Q3 2019.