Lockheed Martin takes flight in times of crisis. A leading global military contractor, the company serves the civil and commercial sectors, but it is firmly on the defense/government side of the aerospace industry; sales to the US government accounts for about 82% of revenue, with the US DoD accounting for about 61%. Electronic Systems is its largest segment, providing such products as surface ship and submarine combat systems. Other segments include Aeronautics (combat aircraft and UAVs), Information Systems & Global Services (IS&GS; data protection and intelligence) and Space Systems (satellites and space travel). Lockheed Martin also provides engineering, logistics, and information services.
Sales & Marketing
Though the DoD is undergoing budget cuts, it is still committed to several important Lockheed Martin product initiatives, including the F-35, the Global Positioning Satellite program, the Advanced Extremely High Frequency system, the Space-Based Infrared System, Phased Adaptive Approach missile defense system, the DDG-51 AEGIS destroyer, and the U-2 manned ISR aircraft.
Year-over-year 2011 net sales rose 2% for Lockheed Martin, thanks mainly to strong sales in the Aeronautics and Electronic Systems segments. Products that performed especially well in Aeronautics, which itself enjoyed a 10% rise in net sales, included the F-35, C-130, F-16, and C-5 aircraft. Electronic Systems, which rose 2% in net sales, was supported by strong demand for the Patriot Advanced Capability-3 (PAC-3) missile, Terminal High Altitude Area Defense (THAAD) program, and the Littoral Combat Ship (LCS). Services sales also pushed up revenue for Aeronautics (which enjoyed more demand for Special Operations Forces Contractor Logistics Support Services) and Electronics Systems (providing more logistic and training programs).
The company's two other segments struggled some in 2011. Information Systems & Global Solutions' 2011 net sales declined 5% mainly because of the loss of the Decennial Response Integration System for the US Census and lower demand for the Airborne Maritime Fixed Station Joint Tactical Radio System program. Space Systems' net sales were down 1% as a result of the termination of the Space Shuttle and less demand regarding the Orion program and government satellites.
Lockheed Martin is focusing on serving the DoD's new priorities as it tries to become leaner under budget constraints. These priorities include logistics, information technology, and network and cyber security. It finds further optimism for its defense business in the pervasiveness of its products in all aspects of defense theaters. The military realms of land, sea, air, and space will continue to find use for the Aegis Combat System, the PAC-3 missile program, and the THAAD.
As other government departments and agencies also suffer with budget constraints, Lockheed Martin is similarly focusing on the priorities they have identified for leaner operations. For government customers that include the Social Security Administration and the Centers for Medicare and Medicaid Services, Lockheed Martin has been providing service in critical intelligence, knowledge management, and e-Government.
The company believes that the government's ongoing focus on homeland security will boost opportunities for business in air traffic management, cargo security, and biohazard detection, among other security functions. The company is also looking to grow its international sales, primarily from foreign government customers in need of its Aeronautics and Electronic Systems products and services.
Mergers & Acquisitions
In 2011 Lockheed Martin forked over $649 million for acquisitions that included QTC Holdings, which serves the US government with outsourced medical evaluation services, and commercial aviation simulation provider Sim-Industries. Also that year the company initiated some divestments, selling Pacific Architects and Engineers and putting up Savi Technology for sale. – less
4 salaries reported
$44,770 per year