Summary
Lockheed Martin Corporation (LMT) reported its financial results for the second quarter and the first six months ended June 26, 2011. For the quarter, net sales increased by 2% to $11.55 billion, driven by a 1% rise in product sales and a 9% increase in services sales. Net earnings from continuing operations were $742 million, or $2.14 per diluted share, an increase from $714 million, or $1.92 per diluted share, in the prior-year quarter. The company highlighted a strategic review impacting its Aeronautics and Space Systems segments, leading to severance charges of $97 million. For the first six months of the year, net sales grew by 3% to $22.18 billion. Net earnings from continuing operations rose to $1.29 billion, or $3.69 per diluted share, compared to $1.23 billion, or $3.29 per diluted share, in the same period last year. The company also addressed industry considerations, including ongoing discussions regarding the U.S. debt ceiling, and noted a change in its accounting for services contracts with the U.S. Government to the percentage-of-completion method.
Financial Highlights
46 data points| Revenue | $11.54B |
| Cost of Revenue | $10.64B |
| Gross Profit | $906.00M |
| Operating Income | $999.00M |
| Interest Expense | $84.00M |
| Net Income | $742.00M |
| EPS (Basic) | $2.16 |
| EPS (Diluted) | $2.14 |
| Shares Outstanding (Basic) | 342.80M |
| Shares Outstanding (Diluted) | 346.60M |
Key Highlights
- 1Total net sales for Q2 2011 increased by 2% to $11.55 billion, compared to $11.28 billion in Q2 2010.
- 2Net earnings from continuing operations for Q2 2011 were $742 million, or $2.14 per diluted share, up from $714 million, or $1.92 per diluted share, in Q2 2010.
- 3The company recorded $97 million in severance charges in Q2 2011 related to strategic workforce reductions in its Aeronautics and Space Systems segments.
- 4A change in accounting principle, adopting the percentage-of-completion method for U.S. Government services contracts, was implemented effective January 1, 2011, with prior periods restated.
- 5Net cash provided by operating activities for the first six months of 2011 was $2.53 billion, a decrease from $2.87 billion in the prior-year period, primarily due to higher tax payments and separation program payments.
- 6Share repurchases totaled $1.31 billion in the first six months of 2011, with $926 million remaining authorization under the current program.
- 7The company's largest segment, Electronic Systems, saw net sales increase by 6% to $3.76 billion in Q2 2011.