Lockheed Martin : A Detailed Overview

Dream Company Research.

The following report consists of a detailed overview study of Lockheed Martins history, business operations, financial statements and competitive status. The citation and figure sources are mentioned at the concluding bibliography. Authenticities of information facts and figures are guaranteed.
7/10/2011

BUSINESS SUMMARY Lockheed Martin Corporation engages in the research, design, development, manufacture, integration, operation, and sustainment of advanced technology systems and products in the areas of defense, space, intelligence, homeland security, and government information technology in the United States and internationally. It also provides management, engineering, technical, scientific, logistic, and information services. The company operates in four segments: Aeronautics, Electronic Systems, Information Systems & Global Services (IS&GS), and Space Systems. The Aeronautics segment offers military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. Its products and programs comprise the F-35 multi-role, stealth fighter; the F-22 air dominance and multi-mission stealth fighter; the F-16 multi-role fighter; the C-130J tactical transport aircraft; and the C-5M strategic airlifter modernization program; and support for the P-3 maritime patrol aircraft, and the U-2 high-altitude reconnaissance aircraft. The Electronic Systems segment provides air and missile defense; tactical missiles; weapon fire control systems; surface ship and submarine combat systems; anti-submarine and undersea warfare systems; land, sea-based, and airborne radars; surveillance and reconnaissance systems; simulation and training systems; and integrated logistics and sustainment services. The IS&GS segment offers information technology solutions and advanced technology primarily in the areas of software and systems integration for space, air, and ground systems to various defense and civil government agencies. The Space Systems segment provides government and commercial satellites; strategic and defensive missile systems, including missile defense technologies and systems, and fleet ballistic missiles; and space transportation systems. Lockheed Martin Corporation was founded in 1909 and is based in Bethesda, Maryland. HISTORY Merger talks between Lockheed Corporation and Martin Marietta began in March 1994, with the companies announcing their $10 billion planned merger on August 30, 1994.[7] The deal was finalized on March 15, 1995 when the two companies' shareholders approved the merger.[8] The segments of the two companies not retained by the new company formed the basis for the present L-3 Communications, a midsize defense contractor in its own right. Lockheed Martin later spun off the materials company Martin Marietta Materials. Both companies contributed important products to the new portfolio. Lockheed products included the Trident missile, P-3 Orion, F-16 Fighting Falcon, F-22 Raptor, C-130 Hercules, A-4AR Fightinghawk and the DSCS-3 satellite. Martin Marietta products included Titan rockets, Sandia National Laboratories (management contract acquired in 1993), Space Shuttle External Tank, Viking 1 and Viking 2 landers, the Transfer Orbit Stage (under subcontract to Orbital Sciences Corporation) and various satellite models.On April 22, 1996, Lockheed Martin completed the acquisition of Loral Corporation's defense electronics and system integration businesses for $9.1 billion, the deal having been announced in January. The remainder of Loral became Loral Space & Communications.[9]Lockheed Martin abandoned plans for a $8.3 billion merger with Northrop Grumman on July 16, 1998, due to government concerns over the potential strength of the new group; Lockheed/Northrop would have had control of 25% of the Department of Defense's procurement budget. Lockheed Martin provided NASA with measurements in US Customary force units when metric was required, resulting in the loss of the Mars Climate Orbiter at a cost of $125 million. The cost for spacecraft development was $193.1 million. In May 2001, Lockheed Martin sold Lockheed Martin Control Systems to BAE Systems. On November 27, 2000, Lockheed completed the sale of its Aerospace Electronic Systems business to BAE Systems for $1.67 billion, a deal announced in July 2000. This group encompassed Sanders Associates, Fairchild Systems, and Lockheed Martin Space Electronics & Communications.

In 2001, Lockheed Martin won the contract to build the F-35 Lightning II; this was the largest fighter aircraft procurement project since the F-16, with an initial order of 3,000 worth some $200 billion before export orders.In 2001, Lockheed Martin settled a nine year investigation conducted by NASA's Office of Inspector General with the assistance of the Defense Contract Audit Agency. The company paid the United States government $7.1 million based on allegations that its predecessor, Lockheed Engineering Science Corporation, submitted false lease costs claims to NASA. On May 12, 2006, The Washington Post reported that when Robert Stevens took control of Lockheed Martin in 2004, he faced the dilemma that within 10 years 100,000 of the about 130,000 Lockheed Martin employees more than three-quarters would be retiring. On August 31, 2006, Lockheed Martin won a $3.9 billion contract from NASA to design and build the CEV capsule, also known as Orion the next spacecraft for human flight for the Ares I rocket in the Constellation Program.On August 13, 2008, Lockheed Martin acquired the government business unit of Nantero, Inc., a company that had developed methods and processes for incorporating carbon nanotubes in next-generation electronic devices. On November 18, 2010, Lockheed Martin announced that it would be closing its Eagan, MN location by 2013 in order to drive down costs and optimize capacity at their locations nationwide. In January 2011, Lockheed Martin agreed to pay the US Government $2 million to settle allegations that the company submitted false claims on a U.S. government contract for that amount. The allegations came from a contract with the Naval Oceanographic Office Major Shared Resource Center in Mississippi. On May 28, 2011 it was reported that a cyber-attack using previously stolen EMC files had broken through to sensitive materials at the contractor. It is unclear if the Lockheed incident is the specific prompt whereby on June 1, 2011, the new United States military strategy, makes explicit that a cyberattack is casus belli for a traditional act of war.

COMPANYS MISSION & VALUES

Lockheed Martin Canada is a diversified technology company serving the needs of Canadian government and military and selected international customers.

to be an ethical, dynamic and technology-oriented electronics and systems integration company pursuing Canadian and global markets in military Systems Integration, Electronic Warfare, High Frequency Sonar and Information Systems.

VALUES

Customer focus Learning culture through integrated diversity Employee satisfaction Decisive and expeditious implementation Change propensity Continuous communications Mission success Shared vision through ethics and teamwork

PRODUCTS & SERVICES

AERONAUTICS Advanced Development Programs

Advanced Composite Cargo Aircraft

C-130J Super Hercules

C-5M Super Galaxy

F-16 Fighting Falcon

F-2

F-22 Raptor

F-35 Lightning II

Greenville Site Operations

Hybrid Air Vehicle (P-791)

Integrated Warfare Development Center

P-3 Orion

T-50 Multirole Trainer

Transformer TX

U-2 Dragon Lady

INFORMATION SYSTEMS & GLOBAL SOLUTIONS

Advanced Extremely High Frequency Ground Station Agency Consolidated End-User Services

Advanced Technologies and Oceanic Procedures Air & Space Operations Weapon System Integrator Airborne and Maritime / Fixed Station Joint Tactical Radio Systems Albania National Airspace Modernization Program Audacity Automated Radar Terminal System Color Display

Air Traffic Control Simulation Systems

Airborne Multi-INT Laboratory

All Source Analysis System Automated Flight Service Station

Biometric Experimentation and Advanced Concepts Center Bureau of Alcohol, Tobacco, Firearms and Explosives Software Maintenance Support Census Systems

Biometrics

CECOM Rapid Response

Chief Information Officer Solutions and Partners 2 (CIO-SP2) Command, Control, Battle Management & Communications Contact Center Solutions Cyber Security for the Energy Industry

Command Center Operations

Common Automated Radar Terminal System Counter Narco-Terrorism Technology Program and Operations Support Defence Fixed Telecommunication Service Program Design and Engineering Support Program DoD Logistics, Maintenance and Supply Support Electronic Records Archive En Route Automation Modernization program Energy Efficiency Services Enterprise IT Solutions Flight Operations for Defense

Defense Services Distributed Common Ground System e-Customs Partnership Electronic Suspense Tracking and Routing System Energy Business Services Energy Engineering & Technical Services Environmental Services FltWinds and SPEAR: Lockheed Martin Airline Solutions Geostationary Communications and Control Segment program Global Command and Control Systems - Army GSA Schedule 84 Host Sustainment Information Technology Enterprise Solutions Integrated Electronic Security System and Command, Communications and Control

Foliage Penetration Synthetic Aperture Radar

Global Combat Support System - Air Force Global Compass Navigation System HI-Vision Lab Information & Knowledge Solutions Information Technology Services for Homeland Security

MISSILES & FIRE CONTROL After Market Enterprise Army Tactical Missile System Block IA Unitary CEEU CMMS DAGR Guided Unitary MLRS Rocket HAAWC HELLFIRE II Missile High Speed Wind Tunnel Intelligent Microgrid Solutions JAGM Javelin LANTIRN ER LONGBOW UTA M299 Missile Launcher Medium Extended Air Defense System Modernized Day Sensor Assembly Multiple Launch Rocket System M270 Network Activated Short Range Air Defense System PAC-3 Missile Segment Enhancement Patriot

AAS Airborne Laser Wide Area Surveillance Subsystem Arrowhead CEOS Compact Kinetic Energy Missile F-35 Lightning II Electro-optical Targeting System Gyrocam Systems Heat Rejection Radiators High Mobility Artillery Rocket System HULC IRST JASSM Joint Light Tactical Vehicle LONGBOW FCR and LONGBOW HELLFIRE Missile LRLAP MEADS Internal Communications Subsystem Missile Launch Detector Multifunction Utility/Logistics and Equipment Vehicle Multiple Launch Rocket System M270A1 PAC-3 Missile Pathfinder

FINANCIAL OVERVIEW Financial Highlights Fiscal Year Fiscal Year Ends: Most Recent Quarter (mrq): Profitability Profit Margin (ttm): Operating Margin (ttm): Management Effectiveness Return on Assets (ttm): Return on Equity (ttm): Income Statement Revenue (ttm): Revenue Per Share (ttm): Qtrly Revenue Growth (yoy): Gross Profit (ttm): EBITDA (ttm): Net Income Avl to Common (ttm): Diluted EPS (ttm): Qtrly Earnings Growth (yoy): Balance Sheet Total Cash (mrq): Total Cash Per Share (mrq): Total Debt (mrq): Total Debt/Equity (mrq): Current Ratio (mrq): Book Value Per Share (mrq): Cash Flow Statement Operating Cash Flow (ttm): Levered Free Cash Flow (ttm): 3.58B 2.86B 3.86B 11.12 5.02B 132.50 1.19 10.92 46.10B 128.79 2.90% 3.84B 4.76B 2.67B 8.06 -0.60% 6.71% 68.40% 6.34% 8.50% Dec 31 Mar 27, 2011

BALANCE SHEET

Period Ending
Assets Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets Liabilities Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges Minority Interest Negative Goodwill

Mar 27, 2011

Dec 31, 2010

Sep 26, 2010

Jun 27, 2010

3,357,000 504,000 7,739,000 2,277,000 866,000 14,743,000 4,461,000 9,609,000 4,452,000 3,412,000 36,677,000

2,261,000 516,000 6,795,000 2,378,000 901,000 12,851,000 4,554,000 9,605,000 4,575,000 3,482,000 35,067,000

2,656,000 767,000 7,205,000 2,093,000 1,218,000 13,939,000 4,347,000 9,588,000 158,000 4,180,000 3,339,000 35,551,000

2,722,000 877,000 7,345,000 2,360,000 908,000 14,212,000 4,381,000 9,797,000 179,000 4,056,000 3,614,000 36,239,000

10,026,000 2,404,000 12,430,000 5,023,000 15,433,000 -

9,216,000 1,941,000 11,157,000 5,019,000 15,183,000 -

9,302,000 2,336,000 11,638,000 5,019,000 14,976,000 -

9,149,000 2,710,000 11,859,000 5,019,000 15,627,000 -

Total Liabilities Stockholders' Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity Net Tangible Assets

32,886,000

31,359,000

31,633,000

32,505,000

345,000 12,274,000 (8,828,000) 3,791,000 (5,818,000)

346,000 12,372,000 (9,010,000) 3,708,000 (5,897,000)

358,000 12,150,000 (8,590,000) 3,918,000 (5,828,000)

360,000 11,988,000 (8,614,000) 3,734,000 (6,242,000)

COMPETITIVE STATUS Direct Competitor Comparison LMT Market Cap: Employees: Qtrly Rev Growth (yoy): Revenue (ttm): Gross Margin (ttm): EBITDA (ttm): Operating Margin (ttm): Net Income (ttm): EPS (ttm): P/E (ttm): PEG (5 yr expected): P/S (ttm):
BA = Boeing Co. NOC = Northrop Grumman Corporation RTN = Raytheon Co. Industry = Aerospace/Defense Products & Services

BA 55.42B 160,500 -2.00% 64.00B 19.14% 6.22B 7.06% 3.38B 4.53 16.58 1.56 0.88

NOC 19.89B 117,100 -2.60% 34.58B 18.00% 3.93B 9.26% 2.12B 7.08 9.61 0.95 0.58

RTN 17.32B 72,400 0.10% 25.19B 18.93% 2.84B 9.93% 1.70B 4.71 10.32 1.10 0.70

Industry 976.14M 2.30K 19.30% 985.54M 24.11% 96.15M 10.66% N/A 1.17 18.60 1.33 0.95

27.96B 132,000 2.90% 46.10B 10.47% 4.76B 8.50% 2.67B 8.06 9.99 1.23 0.61

GLOBAL PRESENCE

INTERNATIONAL OPERATIONS FIELD OFFICES Americas

Arlington, VA

Continental Europe

Brussels, Belgium Berlin, Germany Bonn, Germany Athens, Greece Oslo, Norway Warsaw, Poland Bucharest, Romania Madrid, Spain

United Kingdom

London, England Havant, England

Middle East & Africa Region

Cairo, Egypt Tel Aviv, Israel Riyadh, Saudi Arabia Ankara, Turkey Abu Dhabi, United Arab Emirates

Asia Pacific Region

Taipei, Taiwan Barton, Australia Edinburgh, Australia Victoria, Australia Beijing, China New Delhi, India Jakarta, Indonesia Tokyo, Japan Seoul, Korea Kuala Lumpur, Malaysia Makati City, Philippines Singapore

BIBLIOGRAPHY

www.google.com www.wikipedia.com http://finance.yahoo.com www.lockheedmartin.com