Summary
Lockheed Martin Corporation's (LMT) 2010 10-K filing reveals a robust global security company primarily serving the U.S. Government, which accounted for 84% of its $45.8 billion in net sales. The company operates across four key segments: Aeronautics, Electronic Systems, Information Systems & Global Solutions (IS&GS), and Space Systems. Despite facing a challenging economic environment and potential U.S. defense budget pressures, Lockheed Martin demonstrated resilience, with net sales increasing by 4% year-over-year. The company is strategically positioning itself for the future by focusing on core program execution, cost reduction initiatives, and portfolio shaping activities, including the divestiture of certain businesses. Financially, Lockheed Martin generated strong operating cash flows, enabling continued investment in technology and returning capital to shareholders through dividends and share repurchases. The company also managed its debt effectively and maintained significant liquidity through its revolving credit facility. Key programs like the F-35 Joint Strike Fighter continue to be significant drivers of future revenue, though the company acknowledges development challenges and cost restructuring efforts for this program. Investors should note the company's heavy reliance on U.S. government contracts and the associated risks related to budget appropriations and regulatory compliance.
Financial Highlights
50 data points| Revenue | $45.67B |
| Cost of Revenue | $41.83B |
| Gross Profit | $3.84B |
| R&D Expenses | $639.00M |
| Operating Income | $4.11B |
| Interest Expense | $345.00M |
| Net Income | $2.88B |
| EPS (Basic) | $7.90 |
| EPS (Diluted) | $7.81 |
| Shares Outstanding (Basic) | 364.20M |
| Shares Outstanding (Diluted) | 368.30M |
Key Highlights
- 1Net sales for 2010 reached $45.8 billion, a 4% increase from $43.995 billion in 2009, driven by growth across most business segments, with Aeronautics and Electronic Systems being key contributors.
- 2The U.S. Government remained the dominant customer, accounting for 84% of net sales, followed by foreign governments at 15%.
- 3The company generated $3.547 billion in net cash provided by operating activities, demonstrating strong cash flow generation to support operations, investments, and shareholder returns.
- 4Lockheed Martin repurchased $2.483 billion of its common stock in 2010 and declared dividends totaling $969 million, indicating a commitment to returning capital to shareholders.
- 5The F-35 Joint Strike Fighter program continues to be a significant program, representing 12% of total sales in 2010, with plans for increased production in future years, despite facing development challenges and restructuring.
- 6The company is actively reshaping its portfolio through divestitures, including the sale of Enterprise Integration Group (EIG) and the planned sale of Pacific Architects and Engineers, Inc. (PAE).
- 7Lockheed Martin's backlog at December 31, 2010, stood at $78.2 billion, providing visibility into future revenues.