Lockheed quarterly earnings soar

first_img AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREWalnut’s Malik Khouzam voted Southern California Boys Athlete of the Week “We have consistently driven operational performance to higher levels throughout each quarter this year, highlighted by strong growth in our net earnings,” Bob Stevens, chairman, president and chief executive officer, said in the company’s earnings announcement. “Additionally, every business segment has contributed to the enterprisewide focus on improving the returns on our investment base. As a result, our return on invested capital is expected to exceed 15 percent in 2005.” Net sales for the nine months that ended Sept. 30 were $27 billion, a 6 percent increase over the $25.6 billion recorded in the same months last year. Net earnings for the nine months through September were $1.3 billion, or $2.81 per share, compared with $894 million or $2 per share in 2004. The 2005 results include the effects of three previously disclosed unusual items: an after-tax gain of $31 million recognized in the first quarter from the sale of Intelsat investment, an after-tax gain of $27 million recognized in the second quarter related to the investment in Inmarsat, and an after-tax loss of $19 million recognized in the first quarter related to a telecommunications satellite operated by a subsidiary. On a combined basis, these items increased 2005 net earnings by $39 million, or 9 cents per share. Lockheed Martin reported third-quarter net earnings of $427 million compared with $307 million in the same quarter last year. Per diluted share, the third-quarter earnings were 96 cents, compared with 69 cents per diluted share a year ago – up by 39 percent. The increase in projected 2005 diluted earnings per share was primarily driven by an unusual gain of 12 cents per share from the sale of approximately 16 million shares of Inmarsat stock. This stock sale was consummated in October, and the gain will be reflected in the corporation’s fourth-quarter results, the company said. Net sales were $9.2 billion for the third quarter, a 9 percent increase over third-quarter 2004 sales of $8.4 billion. Cash from operations for the third quarter of 2005 was $893 million. In October, Lockheed Martin paid approximately $150 million to acquire INSYS Group Limited and Coherent Technologies Inc. The INSYS acquisition expands the corporation’s commitment in the United Kingdom. Net sales for Lockheed Martin Aeronautics, which operates a Palmdale plant, increased by 8 percent for the third quarter and decreased by 2 percent for the nine months through September. The quarterly sales increase was primarily due to increased C-130J transport plane deliveries and volume on other Air Mobility programs. For the nine-month period, sales decreased by $150 million due to anticipated declines in combat aircraft, which more than offset growth in Air Mobility. Combat aircraft sales decreased by $490 million for the nine-month period primarily due to declines in F-16 volume, which more than offset higher F/A-22 and F-35 volume. 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set!last_img read more