Lockheed Martin Releases Fourth Quarter And Year End Earnings
[Satellite Today – 1-25-08] Revenue in Lockheed Martin Corp.‘s Space Systems division increased by 7 percent in the 2006 fourth quarter to $2.1 billion, the company reported Jan. 24.
The gains were driven by increases at Strategic & Defensive Missile Systems and Space Transportation businesses, which offset decreases in Satellites. The sales increase at Space Transportation was driven by higher volume on NASA’s Orion program, which offset decreases from the loss of U.S. government satellite launches. Lockheed Martin combined that business into the United Launch Alliance joint venture with Boeing in the fourth quarter of 2006. In Satellites, declines in government satellites were offset partially by increases in commercial satellites. Segment operating profit for Space Systems increased 26 percent to $236 million in the 2007 fourth quarter due to the gains in Space Transportation and Strategic & Defensive Missile Systems.
For the full year, Space Systems posted a 4 percent revenue gain to $8.2 billion due to satellite and missiles sales. In Satellites, the growth was mainly driven by higher volume in government satellite activities, while commercial satellites sales remained relatively flat. Space Transportation posted a decline due to the divestiture of International Launch Services and the formation of the United Launch Alliance.
Operating profit improved from $742 million in 2006 to $856 million in 2007 due to growth in satellites and missiles. Space Transportation operating profit declined due to a charge recognized by the United Launch Alliance in the 2007 third quarter for an asset impairment on Delta 2 launch vehicles.
Overall, Lockheed Martin posted a profit of $799 million in the 2007 fourth quarter on relatively flat revenues of $10.8 billion. For the year, the company earned $3 billion on revenues of $41.9 billion In 2006, Lockheed earned $2.5 billion on revenues of $39.6 billion.