What was Lockheed Martin's revenue performance in the second quarter of 2007?

Lockheed Martin's net sales for the second quarter ended June 30, 2007, increased by 7% to $10.7 billion, compared to $10.0 billion in the same period of 2006.

How did the company's profitability change in the reported periods?

Operating profit increased significantly, rising 31% to $1.23 billion for the second quarter of 2007 and 18% to $2.25 billion for the first six months of 2007, compared to the corresponding periods in 2006.

What is the status of Lockheed Martin's share repurchase program?

In the first six months of 2007, Lockheed Martin repurchased $1.39 billion worth of common shares. The company had repurchased a total of 88 million shares under its program as of June 30, 2007, with approximately 20 million shares remaining for repurchase.

What impact did the ULA joint venture have on the Space Systems segment?

The formation of the United Launch Alliance (ULA) joint venture and the divestiture of International Launch Services (ILS) led to an anticipated decrease in net sales for the Space Systems segment. However, operating profit for the segment still increased due to higher volume in government satellite activities and improved performance in strategic missile programs.

LMT 10-Q Quarterly Report Q2 FY2007 — Revenue, Net Income, EPS

Summary

Lockheed Martin Corporation (LMT) reported solid financial results for the second quarter and first half of 2007. Net sales increased by 7% to $10.7 billion for the quarter and 4% to $19.9 billion for the first six months, driven by growth across most business segments, particularly in Aeronautics and Electronic Systems. Operating profit saw a significant increase of 31% to $1.23 billion for the quarter and 18% to $2.25 billion for the six months, reflecting improved performance and higher volumes. The company's financial health remains robust, with strong operating cash flow of $2.89 billion for the first half of the year. Lockheed Martin also continued its commitment to shareholder returns through substantial share repurchases totaling $1.39 billion in the first six months of 2007 and an increase in dividends. While Space Systems experienced a slight sales decrease due to ongoing strategic realignments like the United Launch Alliance (ULA) joint venture, the overall performance indicates a well-managed and growing enterprise.

Key Highlights

1Net sales increased by 7% to $10.7 billion for the quarter and 4% to $19.9 billion for the first six months of 2007 compared to the prior year periods.
2Operating profit grew significantly, up 31% to $1.23 billion for the quarter and 18% to $2.25 billion for the six months, indicating strong operational performance.
3The company generated robust operating cash flow of $2.89 billion in the first six months of 2007, demonstrating effective cash management.
4Lockheed Martin returned substantial capital to shareholders, repurchasing $1.39 billion in common stock and increasing dividends during the first six months of 2007.
5The Information Systems & Global Services (IS&GS) segment showed strong growth with a 17% increase in net sales for the quarter, partly due to acquisitions.
6Space Systems experienced a slight sales decrease, attributed to the ULA joint venture formation and ILS divestiture, but operating profit still saw an increase.
7The company's effective tax rate for the six months of 2007 was impacted by the resolution of IRS examinations and ETI tax benefits, reducing the overall rate.

LOCKHEED MARTIN CORP Quarterly Report for Q2 Ended Jun 30, 2007

Summary

Key Highlights

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