Summary
Lockheed Martin Corporation reported net sales of $11.07 billion for the first quarter of 2013, a slight decrease from $11.29 billion in the prior year's comparable quarter. Net earnings increased to $761 million, or $2.33 per diluted share, compared to $668 million, or $2.03 per diluted share, in the first quarter of 2012. This improvement was driven by a lower effective tax rate, partly due to the retroactive reinstatement of the R&D tax credit, and improved operating results. The company noted that the U.S. government's sequestration measures posed a significant uncertainty and were expected to have a material negative effect on the business, with a projected mid-single-digit decline in net sales for 2013. Despite the challenging government budget environment, Lockheed Martin highlighted strength in certain segments like Missiles and Fire Control and Mission Systems and Training, which saw increased sales. The company also continued its focus on shareholder returns, repurchasing $461 million of its common stock and paying $371 million in dividends during the quarter. Management reiterated its commitment to aligning its businesses with critical national priorities amidst ongoing budget uncertainties.
Financial Highlights
44 data points| Revenue | $11.07B |
| Cost of Revenue | $10.03B |
| Gross Profit | $1.04B |
| Operating Income | $1.12B |
| Interest Expense | $92.00M |
| Net Income | $761.00M |
| EPS (Basic) | $2.37 |
| EPS (Diluted) | $2.33 |
| Shares Outstanding (Basic) | 321.70M |
| Shares Outstanding (Diluted) | 326.30M |
Key Highlights
- 1Net sales for Q1 2013 were $11.07 billion, down 2.0% from $11.29 billion in Q1 2012.
- 2Net earnings increased by 14.0% to $761 million in Q1 2013, from $668 million in Q1 2012.
- 3Diluted Earnings Per Share (EPS) rose to $2.33 in Q1 2013, up from $2.03 in Q1 2012.
- 4Operating profit increased to $1.119 billion from $1.044 billion year-over-year.
- 5The company repurchased $461 million of its common stock and paid $371 million in dividends during the quarter.
- 6Significant uncertainty exists due to U.S. government sequestration, with the company projecting a mid-single-digit decline in 2013 net sales.
- 7The effective tax rate decreased to 25.8% from 29.8% in the prior year, benefiting from the R&D tax credit reinstatement.