Summary
Lockheed Martin Corporation's first quarter 2015 report shows a decrease in net sales and net earnings compared to the prior year period. Net sales declined by approximately 4.6% to $10.11 billion, primarily driven by lower product sales in the Aeronautics and Missiles and Fire Control segments. Net earnings decreased by 5.9% to $878 million, or $2.74 per diluted share, down from $933 million ($2.87 per diluted share) in the first quarter of 2014. The company highlighted ongoing U.S. government funding constraints and potential impacts of budget reductions as key industry considerations. Despite the top-line and bottom-line decline, the company demonstrated strong cash flow generation from operations, amounting to $957 million. Financing activities showed a significant shift from the prior year, with a net cash inflow of $1.175 billion in Q1 2015, largely due to the issuance of $2.25 billion in long-term debt, compared to a net outflow of $1.327 billion in Q1 2014 which was primarily driven by share repurchases and debt repayments. The company also continued its commitment to returning capital to shareholders through dividends and share repurchases, albeit at a reduced pace for the latter in the current quarter.
Financial Highlights
41 data points| Revenue | $8.72B |
| Cost of Revenue | $8.85B |
| Gross Profit | $1.26B |
| Operating Income | $1.15B |
| Interest Expense | $93.00M |
| Net Income | $878.00M |
| EPS (Basic) | $2.78 |
| EPS (Diluted) | $2.74 |
| Shares Outstanding (Basic) | 315.40M |
| Shares Outstanding (Diluted) | 320.20M |
Key Highlights
- 1Net sales for Q1 2015 decreased to $10.11 billion from $10.65 billion in Q1 2014, largely due to a 7% decline in product sales.
- 2Net earnings for Q1 2015 were $878 million, a decrease from $933 million in the prior year period, with diluted EPS at $2.74 compared to $2.87.
- 3Operating profit across all business segments decreased to $1.356 billion from $1.432 billion.
- 4Net cash provided by operating activities was $957 million in Q1 2015, a significant decrease from $2.1 billion in Q1 2014, primarily due to changes in working capital.
- 5The company issued $2.25 billion in long-term debt in February 2015, contributing to a positive net cash flow from financing activities of $1.175 billion, a reversal from a net outflow of $1.327 billion in the prior year quarter.
- 6Share repurchases were reduced to $604 million in Q1 2015 from $1.1 billion in Q1 2014.
- 7The Aeronautics and Missiles and Fire Control segments experienced significant decreases in net sales, attributed to fewer deliveries on key programs.