2013 Results Reflect Your Outstanding Performance
January 23, 2014
To All Lockheed Martin Employees:
In a year marked by change and uncertainty, your unwavering focus on delivering for our customers generated outstanding results across Lockheed Martin and positioned our company for continued success.
While 2013 sales declined to $45.4 billion, we saw growth in several key areas. We grew net earnings from continuing operations to $3.0 billion and cash from operations to $4.5 billion after making $2.25 billion in contributions to our pension trust. Our backlog increased to a record $82.6 billion and we returned value to our stockholders by repurchasing $1.8 billion of our stock and paying $1.5 billion in dividends.
Those strong financial results were powered by your outstanding operational performance. Four of our space programs marked highly successful launches: the Mars Atmosphere and Volatile EvolutioN spacecraft, the Mobile User Objective System and Advanced Extremely High Frequency communications satellites, and the Space-Based Infrared System missile warning satellite. We saw the first operational deployments of the USS Freedom Littoral Combat Ship, the THAAD missile defense system, and a major upgrade to the FBI’s Next Generation Identification biometrics system. We delivered the 300th C-130J, and celebrated the production of the 100th F-35. We made progress on the global stage, launching LM International, securing programs in key areas, and acquiring the Amor Group in the UK.
We also made some difficult decisions last year to drive affordability, improve our competitive posture, and adapt to continued customer budget constraints. While we’re encouraged that Congress recently passed a two-year budget plan that partially overturns sequestration through 2015, we know that our customers around the world still face long-term fiscal pressures, and that they’re counting on us to help them do more with less. By managing our costs and reshaping our operations, we’re strengthening our position in an increasingly competitive environment.
Your continued dedication, focus and integrity give me great confidence as we begin this year. I know that this team is ready to continue to rise to the occasion and help our customers navigate an uncertain future.
Thank you for your outstanding performance in 2013. I look forward to working with you to build on that success in 2014 and beyond.
Marillyn A. Hewson,
Chairman, President and
Chief Executive Officer