Summary
Lockheed Martin Corporation (LMT) reported strong performance in its 2012 fiscal year, with net sales reaching $47.2 billion. The company's business is heavily reliant on U.S. Government contracts, which accounted for 82% of net sales, with the Department of Defense representing 61% of that total. Despite economic pressures and ongoing budget discussions in the U.S., LMT demonstrated resilience across its five business segments: Aeronautics, Information Systems & Global Solutions (IS&GS), Missiles and Fire Control (MFC), Mission Systems and Training (MST), and Space Systems. Key financial highlights include a robust backlog of $82.3 billion at year-end 2012, indicating strong future revenue visibility. The company also continued to return value to shareholders through increased dividends and share repurchases, signaling financial health and confidence in future operations. While facing potential headwinds from government budget uncertainties, including sequestration, Lockheed Martin strategically focused on program execution, technological advancement, and disciplined portfolio management to maintain its market leadership in global security and aerospace.
Financial Highlights
47 data points| Revenue | $47.18B |
| Cost of Revenue | $42.99B |
| Gross Profit | $4.20B |
| R&D Expenses | $616.00M |
| Operating Income | $4.43B |
| Interest Expense | $383.00M |
| Net Income | $2.75B |
| EPS (Basic) | $8.48 |
| EPS (Diluted) | $8.36 |
| Shares Outstanding (Basic) | 323.70M |
| Shares Outstanding (Diluted) | 328.40M |
Key Highlights
- 1Net sales reached $47.2 billion in 2012, driven primarily by U.S. Government contracts (82% of total sales).
- 2Backlog stood at $82.3 billion at the end of 2012, providing significant revenue visibility.
- 3The company operates across five key segments: Aeronautics, IS&GS, MFC, MST, and Space Systems, with Aeronautics being the largest contributor to net sales.
- 4Lockheed Martin's largest program, the F-35 Lightning II Joint Strike Fighter, accounted for 14% of total consolidated net sales in 2012.
- 5The company returned cash to investors through dividends ($4.15 per share in 2012) and share repurchases, totaling $1.0 billion for the year.
- 6Despite a challenging fiscal environment, the company managed its operations effectively, with operating profit reaching $4.4 billion.
- 7Significant attention is given to managing risks related to U.S. Government contract funding and potential budget cuts like sequestration.