Strong First Quarter Results Reflect Your Outstanding Performance
April 22, 2014
To All Lockheed Martin Employees:
Today we announced strong first-quarter results that are the result of your outstanding performance, dedication to our customers and commitment to our growth strategy.
We increased our net earnings by 23 percent to $933 million, even as sales declined by four percent to $10.7 billion. We generated $2.1 billion in cash from operations. We also returned value to our stockholders by repurchasing 7 million shares of stock for $1.1 billion and paying $444 million in cash dividends.
These results show that you continue to deliver on your commitments to our customers and bring real value to our shareholders. Among your many accomplishments:
- The first Lockheed Martin F-35 Lightning II assigned to the 56th Fighter Wing, Luke AFB, Ariz., was delivered during a March 14 ceremony. The F-35A Conventional Takeoff and Landing variant is the first of 144 F-35As scheduled for delivery to the base.
- The third Advanced Extremely High Frequency satellite arrived in its operational orbit position and successfully activated its payload. Now, three satellites are being used in limited user testing with connected partner nations, including the U.S., Canada and the Netherlands.
- We received a $611 million contract modification for production of 92 Patriot advanced capability missiles, launchers and associated equipment.
- We received a $699 million contract for construction of two more Littoral Combat Ships, the future USS Indianapolis (LCS 17) and the yet-to-be-named LCS 19.
We also announced two critical acquisitions that will enable us to grow our business in adjacent and international markets. These new additions to Lockheed Martin are BEONTRA of Germany, a leading provider of airport information technology solutions, and Industrial Defender, of Foxborough, Mass., a leading provider of cyber security solutions for control systems in the oil and gas, utility and chemical industries. These acquisitions are part of our NextGen LM roadmap as we continue to reshape our operations for the future.
I am extremely proud of all we have accomplished together and look forward to building on our success. Thank you for your outstanding work and the great start to the year.
Marillyn A. Hewson,
Chairman, President and
Chief Executive Officer