Summary
Lockheed Martin Corporation (LMT) reported a strong first quarter for 2012, with net sales increasing by 6% to $11.3 billion compared to the same period in 2011. This growth was primarily driven by an 8% increase in product sales, with notable contributions from the Aeronautics and Electronic Systems segments. Net earnings also saw a significant rise of 28% to $668 million, translating to diluted earnings per share of $2.03, up from $1.50 in the prior year's quarter. This performance reflects the company's robust execution across its key business segments, particularly in areas like aircraft production and defense systems. Despite overall positive results, investors should note the ongoing uncertainties in government defense spending due to fiscal constraints and potential sequestration. While LMT's diversified portfolio and strategic focus on critical national priorities position it well, the company remains subject to the dynamics of U.S. government budgeting and evolving defense requirements. The company also continued its commitment to shareholder returns through share repurchases and dividend payments, signaling confidence in its financial stability and future prospects.
Financial Highlights
44 data points| Revenue | $11.29B |
| Cost of Revenue | $10.28B |
| Gross Profit | $1.01B |
| Operating Income | $1.04B |
| Interest Expense | $96.00M |
| Net Income | $668.00M |
| EPS (Basic) | $2.06 |
| EPS (Diluted) | $2.03 |
| Shares Outstanding (Basic) | 324.10M |
| Shares Outstanding (Diluted) | 328.60M |
Key Highlights
- 1Net sales increased by 6% to $11.3 billion for the quarter ended March 25, 2012, up from $10.6 billion in the prior year's quarter.
- 2Net earnings rose 28% to $668 million, with diluted earnings per share growing to $2.03 from $1.50 year-over-year.
- 3Product sales showed a strong 8% increase, largely driven by the Aeronautics segment's production activities and increased aircraft deliveries, as well as growth in Electronic Systems' defense programs.
- 4Operating profit improved significantly by 17% to $1.0 billion, reflecting strong performance across key segments and improved risk retirements.
- 5The company continued its capital return strategy, with $242 million spent on share repurchases and $328 million paid in dividends during the quarter.
- 6Despite a notable decrease in net cash provided by operating activities ($458 million vs. $1.7 billion), the company maintained a healthy cash position of $3.5 billion.
- 7The Aeronautics segment saw a substantial 18% increase in net sales, driven by increased production on LRIP contracts and higher deliveries of C-130J and F-35 aircraft.