Lockheed Martin (NYSE: LMT) is an American global aerospace, defense, security, and advanced technology company with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It is headquartered in Bethesda, Maryland, in the Washington Metropolitan Area. Lockheed Martin employs 133,000 people worldwide. Robert J. Stevens is the current Chairman and Chief Executive Officer.
Lockheed Martin is the world's largest defense contractor, and in 2009, 74% of Lockheed Martin's revenues came from military sales.[1] It received 7.1% of the funds paid out by the Pentagon.[2]
Lockheed Martin operates in four business segments. These comprise, with respective percentages of 2009 total net sales of $45.2 billion, Aeronautics (27%), Electronic Systems (27%), Information Systems & Global Solutions (27%), and Space Systems (19%). In 2009 US Government contracts accounted for $38.4 billion (85%), foreign government contracts $5.8 billion (13%), and commercial and other contracts $0.9 billion (2%).[3] In both 2009 and 2008 the company topped the list of US Federal Contractors.
The company has received the Collier Trophy twice – in 2001 for being part of developing the X-35/F-35B LiftFan Propulsion System,[4][5][6] and again in 2006 for leading the team that developed the F-22 Raptor fighter jet.
Lockheed Martin Corporation is a global security company engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems and products. The Company also provides a range of management, engineering, technical, scientific, logistic, and information services. It serves both domestic and international customers with products and services that have defense, civil, and commercial applications, with its principal customers being agencies of the United States Government. The Company operates in four business segments: Aeronautics, Electronic Systems, Information Systems & Global Services (IS&GS), and Space Systems. On November 22, 2010, it completed the divestiture of Enterprise Integration Group (EIG). In April 2011, the Company completed the divestiture of its Pacific Architects and Engineers Incorporated (PAE) business to Lindsay Goldberg, LLC.
Aeronautics
Aeronautics is engaged in the research, design, development, manufacture, integration, sustainment, support, and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. The segment operates in three lines of business: Combat Aircraft, Air Mobility and Other Aeronautics Programs. During the year ended December 31, 2010, net revenues of Aeronautics represented 29% of its total net revnues. The Combat Aircraft business designs, develops, produces, and provides support for systems, logistics, upgrades, modifications, maintenance and repair. The Company’s major fighter aircraft programs include The F-35 Lightning II Joint Strike Fighter - international multi-role, stealth fighter; The F-22 Raptor - air dominance and multi-mission stealth fighter, and The F-16 Fighting Falcon combat-proven, international multi-role fighter.
In Air Mobility, the Company designs, develops, produces, and provides support for systems, logistics, upgrades, modifications, maintenance and repair of tactical and strategic airlift aircraft. Its major programs include production, support, and sustainment of the C-130J Super Hercules, upgrade and support of the legacy C-130 Hercules worldwide fleet, support of the existing C-5A/B/C/M Galaxy fleet, and modernization of Galaxy aircraft to the C-5M Super Galaxy configuration.
The Company is involved in advanced development programs incorporating prototype applications. Its Advanced Development Programs (ADP) organization, which includes the Skunk Works, is focused on future systems, including unmanned aerial systems, next generation capabilities and air mobility. The Company is also involved in network enabled activities that allow separate systems to work together. In addition, it provides logistics support, sustaining engineering, aviation upgrades, modifications, and maintenance, repair, and overhaul (MRO) for the P-3 Orion maritime patrol aircraft and the U-2 high-altitude reconnaissance aircraft.
Electronic Systems
The Electronic Systems segment manages programs and designs, develops, and integrates hardware and software solutions to ensure the mission readiness of armed forces and Government agencies. During 2010, net revenues of Electronic Systems represented 31% of its total net revenues. The Company’s customers include the military services and various Government agencies of the United States and allied countries. Electronic Systems has three principal lines of business: Mission Systems & Sensors (MS2), Missiles & Fire Control (M&FC), and Global Training & Logistics (GT&L). MS2 provides ship systems integration, including command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) capability across shore-based command centers; surface ship and submarine combat systems; sea-based missile defense systems; sensors; tactical avionics; port traffic management systems; missile launching systems; aerostat surveillance systems; technologies associated with renewable energy systems, and supply-chain management programs and systems. MS2’s core programs include the Aegis Weapon System, which is a fleet defense system and a sea-based element of the United States missile defense system, and the Littoral Combat Ship, which is a surface combatant designed to operate in shallow waters.
M&FC develops and produces land-based, air, and theater missile-defense systems, tactical battlefield missiles, electro-optical systems, fire-control and sensor systems, and precision-guided weapons and munitions. The Company also provides sustainment and logistic services in support of fire control and tactical missile programs. M&FC’s Core programs include the Terminal High Altitude Area Defense (THAAD) system, which is a transportable defensive missile system designed to engage targets both within and outside of the Earth’s atmosphere, and the PAC-3 missile, which is a defensive missile designed to intercept incoming airborne threats. GT&L integrates mission-specific applications for fixed- and rotary-wing aircraft, including logistics and sustainment, missions operations support, readiness, engineering support, and integration services, and provides simulation and training services. It provides logistics support services for the United States Special Operations Forces and turnkey training solutions, including the Military Flying Training System for the British Royal Air Force, Royal Navy and Army Air Corps, and the Aircrew Training and Rehearsal Support program for the United States Air Force. The Company also manages and operates the Sandia National Laboratories for the United States Department of Energy.
Information Systems & Global Solutions
The Information Systems & Global Services (IS&GS) segment management services, Information Technology (IT) solutions, and technology expertise across a spectrum of applications to United States Government and other customers. During 2010, net revenues of IS&GS represented 22% of its total net revenues. IS&GS has three principal lines of business: Civil, Defense and Intelligence. The Company’s Civil line of business supports the needs in the areas of human capital, data protection and sharing, financial services, energy and environment, health, security, space exploration, biometrics, and transportation. Its core programs include the En-Route Automation Modernization (ERAM) contract, which is a program to replace the Federal Aviation Administration’s infrastructure with a modern automation environment that includes new functions and capabilities; the Hanford Mission Support contract which provides infrastructure and site support services to the Department of Energy; and the Decennial Response Integration System (DRIS 2010) contract.
The Company’s Defense line of business provides net-enabled situation awareness, and delivers communications and command and control capabilities through complex mission solutions to defense and international customers. Its core programs include the Command and Control, Battle Management, and Communications contract, a program to increase the integration of the Ballistic Missile Defense System, and the Airborne Maritime Fixed Joint Tactical Radio System contract, which provides software programmable tactical radios with voice, data, and video communications to Army, Navy, and Air Force platforms. The Company’s Intelligence line of business designs and integrates the systems that help its customers gather, analyze and distribute critical intelligence data. Its core programs include a classified program to develop advanced intelligence processing, as well as various other classified programs.
Space Systems
Space Systems is engaged in the design, research and development, engineering, and production of satellites, strategic and defensive missile systems, and space transportation systems, including activities related to the planned replacement of the Space Shuttle. During 2010, net revenues of Space Systems represented approximately 18% of its total net revenues. Space Systems has three lines of business: Satellites, Strategic & Defensive Missile Systems, and Space Transportation Systems.
The Company’s Satellites business designs, develops, manufactures and integrates advanced technology satellite systems for Government and commercial applications. It is responsible for various classified systems and services in support of vital national security systems. Its core programs include the Space-Based Infrared System (SBIRS) program, which provides missile launch detection and tracking capabilities; the Mobile User Objective System (MUOS), which is a narrow band satellite communication system for the United States Navy; the Advanced Extremely High Frequency (AEHF) system, which is the Department of Defense (Dod) next generation of secure communications satellites; the Global Positioning Satellite III (GPS III) system, which is the next generation of global positioning satellites, and the Geostationary Operational Environmental Satellite R-Series (GOES-R), which is the National Oceanic and Atmospheric Administration’s (NOAA) next generation of meteorological satellites.
Strategic & Defensive Missile Systems includes missile defense technologies and systems, and fleet ballistic missiles. As of December 31, 2010, the Trident II D5 Fleet Ballistic Missile was the submarine-launched intercontinental ballistic missile in production in the United States. The Company manages missile defense targets hardware and software for the Missile Defense Agency (MDA), providing realistic test environments for the system being developed by the MDA to defend against all classes of ballistic missiles. Space Transportation Systems includes portions of the next generation human space flight system. The Company is National Aeronautics and Space Administration’s (NASA) prime contractor for the design, test, build, integration, and operational capability of the Orion crew exploration vehicle. Through ownership interests in two joint ventures, Space Transportation Systems also includes launch services for the United States Government (United Launch Alliance) and Space Shuttle processing activities (United Space Alliance).
However, Augustine's most dramatic move came in 1994, when Martin Marietta and Lockheed announced a "merger of equals." It took the Federal Trade Commission several months to approve the union, which created the world's largest defense company. While the federal government typically discouraged such massive combinations within the same business area, it regarded this consolidation in the defense industry with favor, since, according to one statement, it "boosts the industry's efficiency and lowers costs for the government, which in turn benefits taxpayers, shareholders and employees."
The spring 1995 exchange of stock created an advanced technology conglomerate with interests in the defense, space, energy, and government sectors serving the commercial, civil, and international markets. Daniel M. Tellep, chairman and CEO of Lockheed, held those same positions at the new company. Martin Marietta leader Augustine stepped into the office of president with the promise that he would advance into the top spots upon Tellep's retirement.
Headquartered in Bethesda, Maryland, Lockheed Martin began a process of consolidation and reorganization even before the merger was completed in March 1995. An organizational consolidation grouped operations around four major business sectors: space and strategic missiles, aeronautics, electronics, and information technology services. The plan merged and eliminated dozens of offices and functions, rendering thousands of jobs redundant in the process. In fact, Lockheed Martin slashed its work force from a combined total of 170,000 people to 130,000 by mid-1995 and expected to furlough another 12,000 by 1999.
The unified company was involved in a number of well-publicized projects, including the Hubble Space Telescope, Motorola's Iridium satellite telecommunications system, the F-22 Stealth fighter, Titan and Atlas space launch vehicles, the Space Shuttle program, and the space station Freedom.
The January 1996 acquisition of Loral Corp.'s Defense Electronics and Systems Integration business made it clear that Lockheed Martin would not soon relinquish its number-one status. Established in 1948, the Loral division was a $6.8 billion operation and a global leader in defense electronics, communications, space and systems integration. The acquisition was initially categorized as a sixth division, Tactical Systems, at Lockheed Martin. Anthony L. Velocci Jr., an analyst with Aviation Week and Space Technology, predicted that Lockheed Martin would encounter difficulty in consolidating the Loral operations into its own recently-reorganized divisions, but that the acquisition would bring economies of scale and boost electronics, tactical systems, and information technology.
Loral Chairman and CEO Bernard Schwartz held those same positions at the newly-formed Lockheed Martin subsidiary and was invited to join the latter company's board of directors. Schwartz, Tellep, and Augustine became the first members of Lockheed Martin's three-man office of the chairman as a result of the acquisition.
Principal Subsidiaries: Lockheed Foreign Sales Corp.; Lockheed Leadership Fund; Lockheed Missiles & Space Co.; Lockheed Support Systems Inc.; Lockheed Aircraft Service International; Lockheed Fort Worth International Corp.; Lockheed International Service & Investment Corp.; Lockheed Space Operations Co.; Lockheed Information Management Services Co.; Lockheed Aeronautical Systems Support Co.; Tri Star Parts Ltd.; Lockheed Boeing ATF Partnership; Murdock Engineering Co.; Lockheed Employment Services Co. Inc.; Lockheed Aeronautical Systems Employment Services Co., Inc.; Lockheed Finance Corp.; Lockheed Systems Co. Inc.; Lockheed Engineering & Sciences Co.; Lockheed Aeromod Center, Inc.; Lockheed Materials Processing Co.; Lockheed Aeroparts, Inc.; Formtek, Inc.; Lockheed Commercial Aircraft Center, Inc.; Lockheed International Services Inc.; Lockheed-Hellas, S.A.; Lockheed of Turkey, Inc.; Lockheed Ho-Chin, Inc.; Lockheed Information Technology Co.; Lockheed Commercial Electronics Co.; Lockheed Idaho Technologies Co.; Lockheed Transport Systems Inc.; Lockheed Mercartor Information Co. Inc.; Lockheed Aircraft Ltd. (Australia); Lockheed Canada; Lockheed International (Germany); Lockheed Corporation S.A. (Switzerland); Hellenic Business Development & Investment Co. S.A. (Greece); Lockheed B.V. (Netherlands); Lockheed Investment Holding Co. (Turkey); Lockheed Aircraft Argentina; Lockheed Information Mgmt Service Co.; Mountaingate Data Systems; Lockheed Sanders Inc.; G.E. CFTS (U.S.); G.E. CFTS II (U.S.); EOSAT (U.S.) (50%); GETAC (Taiwan) (50%); KAPL, Inc.; Management Technical Services Co. (MATSCO); Martin Marietta International, Inc.; Martin Marietta International Commercial Sales, Inc.; Martin Marietta Overseas Corp.; Martin Marietta Overseas Services Corp.; MMC Acquisition Corp.; Lockheed Martin Integrated Systems, Inc.; Samdia Corp.; Technology Ventures Corp.; Martin Marietta Technologies, Inc.; Export Products Foreign Sales Corp.; Gamma Monolithics (75%); Innovative Ventures Corp.; International Launch Services, Inc.; International Light Metals Sales Corp.; TI/Javelin Joint Venture (50%); The Martin Co., Martin Marietta Australia Pty. Ltd.; Martin Marietta Canada, Ltd.; Martin Marietta Carbon Inc.; Martin Marietta Commercial Launch Services, Inc.; Martin Marietta Diversified Technologies, Inc.; Lockheed Martin Marietta Energy Systems, Inc.; Martin Marietta Environmental Holdings, Inc.; MMGE Martin Marietta-Gama Electronik ve Enformasyon (60%); Martin Marietta Information Tech., Inc.; Martin Marietta Millimeter Technologies, Inc.; Martin Marietta Ordnance Systems, Inc.; Martin Marietta Services, Inc.; Martin Marietta Spec. Components, Inc.; Martin Marietta Technical Services, Inc.; Martin Marietta Turkish Holdings, Inc.; Lockheed martin Utility Services, Inc.; Martin Metals Co.; Mathematica Pol. Res. Hold. Corp.; Tennessee Innovation Center; Torrance Advanced Metals Corp.
Principal Divisions: Aeronautics, Electronics, Energy & Environment, Information and Technology Services, Space & Strategic Missiles, Tactical Systems.
OVERALL
Beta: 0.98
Market Cap (Mil.): $27,759.62
Shares Outstanding (Mil.): 347.30
Annual Dividend: 3.00
Yield (%): 3.75
FINANCIALS
LMT.N Industry Sector
P/E (TTM): 10.88 23.04 17.36
EPS (TTM): -1.35 -- --
ROI: 10.87 4.96 3.41
ROE: 68.04 16.97 6.07
Statistics:
Public Company
Incorporated: 1961
Employees: 69,000
Sales: $22.85 billion (1995)
Stock Exchanges: New York
SICs: 3761 Guided Missiles And Space Vehicles; 3812 Search And Navigation Equipment; 3764 Space Propulsion Units And Parts; 7370 Computer And Data Processing Services; 3579 Office Machines, Not Elsewhere Classified; 1442 Construction Sand and Gravel
Name Age Since Current Position
Stevens, Robert 59 2010 Chairman of the Board, Chief Executive Officer
Kubasik, Christopher 49 2010 President, Chief Operating Officer
Tanner, Bruce 51 2007 Chief Financial Officer, Executive Vice President
Heath, Ralph 62 2005 Executive Vice President - Aeronautics
Maguire, Joanne 56 2006 Executive Vice President - Space Systems
Gooden, Linda 57 2007 Executive Vice President - Information Systems & Global Solutions
Hewson, Marillyn 57 2010 Executive Vice President - Electronic Systems
Lavan, Maryanne 51 2010 Senior Vice President, General Counsel, Corporate Secretary
Gregoire, Christopher 42 2010 Vice President, Chief Accounting Officer, Controller
McCarthy, John 63 2006 Vice President, Treasurer
McCorkindale, Douglas 71 2001 Lead Independent Director
Brewer, Rosalind 48 2011 Director
King, Gwendolyn 70 1995 Independent Director
Archibald, Nolan 67 2002 Independent Director
Stevens, Anne 62 2002 Independent Director
Ralston, Joseph 67 2003 Independent Director
Ellis, James 63 2004 Independent Director
Loy, James 68 2005 Independent Director
Burritt, David 55 2008 Independent Director
Falk, Thomas 52 2010 Independent Director
Address:
6801 Rockledge Drive
Bethesda, Maryland 20817
U.S.A.
Lockheed Martin is the world's largest defense contractor, and in 2009, 74% of Lockheed Martin's revenues came from military sales.[1] It received 7.1% of the funds paid out by the Pentagon.[2]
Lockheed Martin operates in four business segments. These comprise, with respective percentages of 2009 total net sales of $45.2 billion, Aeronautics (27%), Electronic Systems (27%), Information Systems & Global Solutions (27%), and Space Systems (19%). In 2009 US Government contracts accounted for $38.4 billion (85%), foreign government contracts $5.8 billion (13%), and commercial and other contracts $0.9 billion (2%).[3] In both 2009 and 2008 the company topped the list of US Federal Contractors.
The company has received the Collier Trophy twice – in 2001 for being part of developing the X-35/F-35B LiftFan Propulsion System,[4][5][6] and again in 2006 for leading the team that developed the F-22 Raptor fighter jet.
Lockheed Martin Corporation is a global security company engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems and products. The Company also provides a range of management, engineering, technical, scientific, logistic, and information services. It serves both domestic and international customers with products and services that have defense, civil, and commercial applications, with its principal customers being agencies of the United States Government. The Company operates in four business segments: Aeronautics, Electronic Systems, Information Systems & Global Services (IS&GS), and Space Systems. On November 22, 2010, it completed the divestiture of Enterprise Integration Group (EIG). In April 2011, the Company completed the divestiture of its Pacific Architects and Engineers Incorporated (PAE) business to Lindsay Goldberg, LLC.
Aeronautics
Aeronautics is engaged in the research, design, development, manufacture, integration, sustainment, support, and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. The segment operates in three lines of business: Combat Aircraft, Air Mobility and Other Aeronautics Programs. During the year ended December 31, 2010, net revenues of Aeronautics represented 29% of its total net revnues. The Combat Aircraft business designs, develops, produces, and provides support for systems, logistics, upgrades, modifications, maintenance and repair. The Company’s major fighter aircraft programs include The F-35 Lightning II Joint Strike Fighter - international multi-role, stealth fighter; The F-22 Raptor - air dominance and multi-mission stealth fighter, and The F-16 Fighting Falcon combat-proven, international multi-role fighter.
In Air Mobility, the Company designs, develops, produces, and provides support for systems, logistics, upgrades, modifications, maintenance and repair of tactical and strategic airlift aircraft. Its major programs include production, support, and sustainment of the C-130J Super Hercules, upgrade and support of the legacy C-130 Hercules worldwide fleet, support of the existing C-5A/B/C/M Galaxy fleet, and modernization of Galaxy aircraft to the C-5M Super Galaxy configuration.
The Company is involved in advanced development programs incorporating prototype applications. Its Advanced Development Programs (ADP) organization, which includes the Skunk Works, is focused on future systems, including unmanned aerial systems, next generation capabilities and air mobility. The Company is also involved in network enabled activities that allow separate systems to work together. In addition, it provides logistics support, sustaining engineering, aviation upgrades, modifications, and maintenance, repair, and overhaul (MRO) for the P-3 Orion maritime patrol aircraft and the U-2 high-altitude reconnaissance aircraft.
Electronic Systems
The Electronic Systems segment manages programs and designs, develops, and integrates hardware and software solutions to ensure the mission readiness of armed forces and Government agencies. During 2010, net revenues of Electronic Systems represented 31% of its total net revenues. The Company’s customers include the military services and various Government agencies of the United States and allied countries. Electronic Systems has three principal lines of business: Mission Systems & Sensors (MS2), Missiles & Fire Control (M&FC), and Global Training & Logistics (GT&L). MS2 provides ship systems integration, including command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) capability across shore-based command centers; surface ship and submarine combat systems; sea-based missile defense systems; sensors; tactical avionics; port traffic management systems; missile launching systems; aerostat surveillance systems; technologies associated with renewable energy systems, and supply-chain management programs and systems. MS2’s core programs include the Aegis Weapon System, which is a fleet defense system and a sea-based element of the United States missile defense system, and the Littoral Combat Ship, which is a surface combatant designed to operate in shallow waters.
M&FC develops and produces land-based, air, and theater missile-defense systems, tactical battlefield missiles, electro-optical systems, fire-control and sensor systems, and precision-guided weapons and munitions. The Company also provides sustainment and logistic services in support of fire control and tactical missile programs. M&FC’s Core programs include the Terminal High Altitude Area Defense (THAAD) system, which is a transportable defensive missile system designed to engage targets both within and outside of the Earth’s atmosphere, and the PAC-3 missile, which is a defensive missile designed to intercept incoming airborne threats. GT&L integrates mission-specific applications for fixed- and rotary-wing aircraft, including logistics and sustainment, missions operations support, readiness, engineering support, and integration services, and provides simulation and training services. It provides logistics support services for the United States Special Operations Forces and turnkey training solutions, including the Military Flying Training System for the British Royal Air Force, Royal Navy and Army Air Corps, and the Aircrew Training and Rehearsal Support program for the United States Air Force. The Company also manages and operates the Sandia National Laboratories for the United States Department of Energy.
Information Systems & Global Solutions
The Information Systems & Global Services (IS&GS) segment management services, Information Technology (IT) solutions, and technology expertise across a spectrum of applications to United States Government and other customers. During 2010, net revenues of IS&GS represented 22% of its total net revenues. IS&GS has three principal lines of business: Civil, Defense and Intelligence. The Company’s Civil line of business supports the needs in the areas of human capital, data protection and sharing, financial services, energy and environment, health, security, space exploration, biometrics, and transportation. Its core programs include the En-Route Automation Modernization (ERAM) contract, which is a program to replace the Federal Aviation Administration’s infrastructure with a modern automation environment that includes new functions and capabilities; the Hanford Mission Support contract which provides infrastructure and site support services to the Department of Energy; and the Decennial Response Integration System (DRIS 2010) contract.
The Company’s Defense line of business provides net-enabled situation awareness, and delivers communications and command and control capabilities through complex mission solutions to defense and international customers. Its core programs include the Command and Control, Battle Management, and Communications contract, a program to increase the integration of the Ballistic Missile Defense System, and the Airborne Maritime Fixed Joint Tactical Radio System contract, which provides software programmable tactical radios with voice, data, and video communications to Army, Navy, and Air Force platforms. The Company’s Intelligence line of business designs and integrates the systems that help its customers gather, analyze and distribute critical intelligence data. Its core programs include a classified program to develop advanced intelligence processing, as well as various other classified programs.
Space Systems
Space Systems is engaged in the design, research and development, engineering, and production of satellites, strategic and defensive missile systems, and space transportation systems, including activities related to the planned replacement of the Space Shuttle. During 2010, net revenues of Space Systems represented approximately 18% of its total net revenues. Space Systems has three lines of business: Satellites, Strategic & Defensive Missile Systems, and Space Transportation Systems.
The Company’s Satellites business designs, develops, manufactures and integrates advanced technology satellite systems for Government and commercial applications. It is responsible for various classified systems and services in support of vital national security systems. Its core programs include the Space-Based Infrared System (SBIRS) program, which provides missile launch detection and tracking capabilities; the Mobile User Objective System (MUOS), which is a narrow band satellite communication system for the United States Navy; the Advanced Extremely High Frequency (AEHF) system, which is the Department of Defense (Dod) next generation of secure communications satellites; the Global Positioning Satellite III (GPS III) system, which is the next generation of global positioning satellites, and the Geostationary Operational Environmental Satellite R-Series (GOES-R), which is the National Oceanic and Atmospheric Administration’s (NOAA) next generation of meteorological satellites.
Strategic & Defensive Missile Systems includes missile defense technologies and systems, and fleet ballistic missiles. As of December 31, 2010, the Trident II D5 Fleet Ballistic Missile was the submarine-launched intercontinental ballistic missile in production in the United States. The Company manages missile defense targets hardware and software for the Missile Defense Agency (MDA), providing realistic test environments for the system being developed by the MDA to defend against all classes of ballistic missiles. Space Transportation Systems includes portions of the next generation human space flight system. The Company is National Aeronautics and Space Administration’s (NASA) prime contractor for the design, test, build, integration, and operational capability of the Orion crew exploration vehicle. Through ownership interests in two joint ventures, Space Transportation Systems also includes launch services for the United States Government (United Launch Alliance) and Space Shuttle processing activities (United Space Alliance).
However, Augustine's most dramatic move came in 1994, when Martin Marietta and Lockheed announced a "merger of equals." It took the Federal Trade Commission several months to approve the union, which created the world's largest defense company. While the federal government typically discouraged such massive combinations within the same business area, it regarded this consolidation in the defense industry with favor, since, according to one statement, it "boosts the industry's efficiency and lowers costs for the government, which in turn benefits taxpayers, shareholders and employees."
The spring 1995 exchange of stock created an advanced technology conglomerate with interests in the defense, space, energy, and government sectors serving the commercial, civil, and international markets. Daniel M. Tellep, chairman and CEO of Lockheed, held those same positions at the new company. Martin Marietta leader Augustine stepped into the office of president with the promise that he would advance into the top spots upon Tellep's retirement.
Headquartered in Bethesda, Maryland, Lockheed Martin began a process of consolidation and reorganization even before the merger was completed in March 1995. An organizational consolidation grouped operations around four major business sectors: space and strategic missiles, aeronautics, electronics, and information technology services. The plan merged and eliminated dozens of offices and functions, rendering thousands of jobs redundant in the process. In fact, Lockheed Martin slashed its work force from a combined total of 170,000 people to 130,000 by mid-1995 and expected to furlough another 12,000 by 1999.
The unified company was involved in a number of well-publicized projects, including the Hubble Space Telescope, Motorola's Iridium satellite telecommunications system, the F-22 Stealth fighter, Titan and Atlas space launch vehicles, the Space Shuttle program, and the space station Freedom.
The January 1996 acquisition of Loral Corp.'s Defense Electronics and Systems Integration business made it clear that Lockheed Martin would not soon relinquish its number-one status. Established in 1948, the Loral division was a $6.8 billion operation and a global leader in defense electronics, communications, space and systems integration. The acquisition was initially categorized as a sixth division, Tactical Systems, at Lockheed Martin. Anthony L. Velocci Jr., an analyst with Aviation Week and Space Technology, predicted that Lockheed Martin would encounter difficulty in consolidating the Loral operations into its own recently-reorganized divisions, but that the acquisition would bring economies of scale and boost electronics, tactical systems, and information technology.
Loral Chairman and CEO Bernard Schwartz held those same positions at the newly-formed Lockheed Martin subsidiary and was invited to join the latter company's board of directors. Schwartz, Tellep, and Augustine became the first members of Lockheed Martin's three-man office of the chairman as a result of the acquisition.
Principal Subsidiaries: Lockheed Foreign Sales Corp.; Lockheed Leadership Fund; Lockheed Missiles & Space Co.; Lockheed Support Systems Inc.; Lockheed Aircraft Service International; Lockheed Fort Worth International Corp.; Lockheed International Service & Investment Corp.; Lockheed Space Operations Co.; Lockheed Information Management Services Co.; Lockheed Aeronautical Systems Support Co.; Tri Star Parts Ltd.; Lockheed Boeing ATF Partnership; Murdock Engineering Co.; Lockheed Employment Services Co. Inc.; Lockheed Aeronautical Systems Employment Services Co., Inc.; Lockheed Finance Corp.; Lockheed Systems Co. Inc.; Lockheed Engineering & Sciences Co.; Lockheed Aeromod Center, Inc.; Lockheed Materials Processing Co.; Lockheed Aeroparts, Inc.; Formtek, Inc.; Lockheed Commercial Aircraft Center, Inc.; Lockheed International Services Inc.; Lockheed-Hellas, S.A.; Lockheed of Turkey, Inc.; Lockheed Ho-Chin, Inc.; Lockheed Information Technology Co.; Lockheed Commercial Electronics Co.; Lockheed Idaho Technologies Co.; Lockheed Transport Systems Inc.; Lockheed Mercartor Information Co. Inc.; Lockheed Aircraft Ltd. (Australia); Lockheed Canada; Lockheed International (Germany); Lockheed Corporation S.A. (Switzerland); Hellenic Business Development & Investment Co. S.A. (Greece); Lockheed B.V. (Netherlands); Lockheed Investment Holding Co. (Turkey); Lockheed Aircraft Argentina; Lockheed Information Mgmt Service Co.; Mountaingate Data Systems; Lockheed Sanders Inc.; G.E. CFTS (U.S.); G.E. CFTS II (U.S.); EOSAT (U.S.) (50%); GETAC (Taiwan) (50%); KAPL, Inc.; Management Technical Services Co. (MATSCO); Martin Marietta International, Inc.; Martin Marietta International Commercial Sales, Inc.; Martin Marietta Overseas Corp.; Martin Marietta Overseas Services Corp.; MMC Acquisition Corp.; Lockheed Martin Integrated Systems, Inc.; Samdia Corp.; Technology Ventures Corp.; Martin Marietta Technologies, Inc.; Export Products Foreign Sales Corp.; Gamma Monolithics (75%); Innovative Ventures Corp.; International Launch Services, Inc.; International Light Metals Sales Corp.; TI/Javelin Joint Venture (50%); The Martin Co., Martin Marietta Australia Pty. Ltd.; Martin Marietta Canada, Ltd.; Martin Marietta Carbon Inc.; Martin Marietta Commercial Launch Services, Inc.; Martin Marietta Diversified Technologies, Inc.; Lockheed Martin Marietta Energy Systems, Inc.; Martin Marietta Environmental Holdings, Inc.; MMGE Martin Marietta-Gama Electronik ve Enformasyon (60%); Martin Marietta Information Tech., Inc.; Martin Marietta Millimeter Technologies, Inc.; Martin Marietta Ordnance Systems, Inc.; Martin Marietta Services, Inc.; Martin Marietta Spec. Components, Inc.; Martin Marietta Technical Services, Inc.; Martin Marietta Turkish Holdings, Inc.; Lockheed martin Utility Services, Inc.; Martin Metals Co.; Mathematica Pol. Res. Hold. Corp.; Tennessee Innovation Center; Torrance Advanced Metals Corp.
Principal Divisions: Aeronautics, Electronics, Energy & Environment, Information and Technology Services, Space & Strategic Missiles, Tactical Systems.
OVERALL
Beta: 0.98
Market Cap (Mil.): $27,759.62
Shares Outstanding (Mil.): 347.30
Annual Dividend: 3.00
Yield (%): 3.75
FINANCIALS
LMT.N Industry Sector
P/E (TTM): 10.88 23.04 17.36
EPS (TTM): -1.35 -- --
ROI: 10.87 4.96 3.41
ROE: 68.04 16.97 6.07
Statistics:
Public Company
Incorporated: 1961
Employees: 69,000
Sales: $22.85 billion (1995)
Stock Exchanges: New York
SICs: 3761 Guided Missiles And Space Vehicles; 3812 Search And Navigation Equipment; 3764 Space Propulsion Units And Parts; 7370 Computer And Data Processing Services; 3579 Office Machines, Not Elsewhere Classified; 1442 Construction Sand and Gravel
Name Age Since Current Position
Stevens, Robert 59 2010 Chairman of the Board, Chief Executive Officer
Kubasik, Christopher 49 2010 President, Chief Operating Officer
Tanner, Bruce 51 2007 Chief Financial Officer, Executive Vice President
Heath, Ralph 62 2005 Executive Vice President - Aeronautics
Maguire, Joanne 56 2006 Executive Vice President - Space Systems
Gooden, Linda 57 2007 Executive Vice President - Information Systems & Global Solutions
Hewson, Marillyn 57 2010 Executive Vice President - Electronic Systems
Lavan, Maryanne 51 2010 Senior Vice President, General Counsel, Corporate Secretary
Gregoire, Christopher 42 2010 Vice President, Chief Accounting Officer, Controller
McCarthy, John 63 2006 Vice President, Treasurer
McCorkindale, Douglas 71 2001 Lead Independent Director
Brewer, Rosalind 48 2011 Director
King, Gwendolyn 70 1995 Independent Director
Archibald, Nolan 67 2002 Independent Director
Stevens, Anne 62 2002 Independent Director
Ralston, Joseph 67 2003 Independent Director
Ellis, James 63 2004 Independent Director
Loy, James 68 2005 Independent Director
Burritt, David 55 2008 Independent Director
Falk, Thomas 52 2010 Independent Director
Address:
6801 Rockledge Drive
Bethesda, Maryland 20817
U.S.A.