Lockheed Martin Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Earnings Guidance for the Year 2018
January 28, 2018
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Lockheed Martin Corporation announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company announced net sales of $15,137 million compared to $13,752 million a year ago. Operating profit was $1,859 million compared to $1,428 million a year ago. Earnings from continuing operations before income taxes were $1,692 million compared to $1,255 million a year ago. Net loss from continuing operations were $715 million or $2.50 per diluted share compared to profit of $959 million or $3.25 per diluted share a year ago. Net loss was $642 million or $2.25 per diluted share compared to profit of $988 million or $3.35 per diluted share a year ago. The increase in Net Sales were attributable to higher net sales of approximately $570 million for the F-35 program primarily due to increased production volume and about $150 million for the C-130 program due to increased aircraft deliveries (10 aircraft delivered in 2017 compared to eight in 2016). These increases were partially offset by a decrease of approximately $85 million for the C-5 program due to fewer aircraft deliveries (two aircraft delivered in 2017 compared to three in 2016).
For the year, the company announced net sales of $51,048 million compared to $47,248 million a year ago. Operating profit was $5,921 million compared to $5,549 million a year ago. Earnings from continuing operations before income taxes were $5,269 million compared to $4,886 million a year ago. Net profit from continuing operations were $1,929 million or $6.64 per diluted share compared to profit of $3,753 million or $12.38 per diluted share a year ago. Net profit was $2,002 million or $6.89 per diluted share compared to profit of $5,302 million or $17.49 per diluted share a year ago. Net cash provided by operating activities was $6,476 million compared to $5,189 million a year ago. Capital expenditures were $1,177 million compared to $1,063 million a year ago.
The company provided earnings guidance for the year 2018. For the year, the company expected net sales in the range of $50,000 million to $51,500 million, consolidated operating profit in the range of $6,830 million to $6,980 million and diluted earnings per share GAAP in the range of $15.20 to $15.50.
Lockheed Martin Corporation specializes in the design, manufacturing and marketing of aeronautic, submarine, and aerospace systems. Net sales break down by activity as follows:
- sale of aeronautic systems (40.7%): military and civilian aircraft, primarily for government organizations;
- sale of helicopters, mission and electronic systems (24%): military and commercial helicopters, ships, sea and land-based missile defense systems, radars, sensors, sea and air-based mission and combat systems, training systems, cyber solutions, command, control and communication systems, surveillance and reconnaissance systems, simulation and training systems, etc.;
- sales of aerospace systems (18.7%): satellite systems, missile systems and space transport systems;
- sale of air defense and fire control systems (16.6%): air and missile defense systems, tactical missiles, precision strike weapons systems, fire control systems, etc. The group also offers support services for mission operations, preparation, technical support, integration services, etc.
Net sales break down by source of income into sales of products (83.3%) and services (16.7%).
Net sales are distributed geographically as follows: the United States (74.3%), Europe (9.5%), Asia/Pacific (8.3%), Middle East (5.8%) and other (2.1%).
Lockheed Martin Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Earnings Guidance for the Year 2018