Summary
Lockheed Martin Corporation's (LMT) third-quarter 2013 results show resilience amidst evolving fiscal landscapes, particularly concerning U.S. government spending. The company reported net earnings of $873 million, or $2.66 per diluted share, for the quarter ended September 29, 2013. This represents a notable increase from $727 million, or $2.21 per diluted share, in the same period last year. The company highlighted a decrease in net sales to $11.3 billion from $11.9 billion year-over-year, primarily driven by lower product sales across several segments, though this was partially offset by growth in services sales. Despite the slight dip in overall sales, operational performance remained robust, with a focus on cost management and efficient program execution. The company's outlook for 2013 indicated an expected mid-single digit decline in net sales compared to 2012, with segment operating profit anticipated to remain comparable. Investors should note the ongoing impact of U.S. government budget constraints, including sequestration, which continue to be a primary factor influencing future revenue and operational planning. Lockheed Martin remains committed to returning value to shareholders through dividends and share repurchases, underscoring its stable financial footing.
Financial Highlights
44 data points| Revenue | $11.35B |
| Cost of Revenue | $10.16B |
| Gross Profit | $1.18B |
| Operating Income | $1.25B |
| Interest Expense | $84.00M |
| Net Income | $873.00M |
| EPS (Basic) | $2.72 |
| EPS (Diluted) | $2.66 |
| Shares Outstanding (Basic) | 321.30M |
| Shares Outstanding (Diluted) | 327.50M |
Key Highlights
- 1Net earnings increased to $873 million ($2.66 per diluted share) in Q3 2013, up from $727 million ($2.21 per diluted share) in Q3 2012.
- 2Total net sales decreased by 5% to $11.3 billion in Q3 2013, primarily due to a 7% decline in product sales, partially offset by a 5% increase in services sales.
- 3The Aeronautics segment saw a 2% decrease in net sales, largely due to fewer deliveries of the F-35 program, though operating profit remained stable.
- 4The Missiles and Fire Control (MFC) segment reported a 3% increase in net sales and a significant 19% increase in operating profit, driven by higher volume in air and missile defense programs.
- 5Shareholder returns remain a priority, with $1.5 billion spent on share repurchases during the first nine months of 2013 and a $3.0 billion increase to the share repurchase program authorized.
- 6The company continues to manage significant U.S. government budget uncertainties, including sequestration, which is expected to impact future business operations.
- 7Defined benefit pension plan contributions totaled $1.5 billion for the first nine months of 2013, completing the planned 2013 funding.