Lockheed Martin Space Systems Drives Growth in Third Quarter
October 21, 2009
Lockheed Martinís space systems business unit has driven growth for the company in its third financial quarter of 2009, offsetting losses suffered due to U.S. military spending cutbacks, Lockheed Martin announced in its quarterly financial results, released Oct. 20.
The manufacturer reported adjusted third quarter net earnings of $797 million, a $15 million increase from the same period in 2008. The results of the third quarter bring the companyís total year-to-date net earnings to $2.2 billion.
Lockheed Martinís satellite and space transportation net sales increased by 9 percent in the quarter compared to the previous year. The company said sales growth in satellites was due to higher volume in commercial satellite and government satellite activities. The increase in space transportation was due to higher volume on the Orion program in 2009. Combined, the two business units more than offset a decline in Lockheed Martinís strategic and defensive missile systems unit.
Lockheed Martinís total net sales for the third quarter of 2009 were $11.1 billion, up from $10.6 billion in the third quarter of 2008. Cash from operations also increased during the third quarter to $1.4 billion from $1.1 billion in 2008.
As a result of the quarter, Lockheed Martin increased its outlook for 2010 and anticipates recovering about $1 billion in costs during 2010, with the remainder being recoverable in future years.
Our third quarter results keep the corporation on track to achieve full year 2009 operational and financial commitments," Lockheed Martin CEO Bob Stevens, said in a statement.