Lockheed Martin Corporation [NYSE: LMT] today reported fourth quarter 2020 net sales of $17.0 billion, compared to $15.9 billion in the fourth quarter of 2019. Net earnings from continuing operations in the fourth quarter of 2020 were $1.8 billion, or $6.38 per share, compared to $1.5 billion, or $5.29 per share, in the fourth quarter of 2019. Cash from operations in the fourth quarter of 2020 was $1.8 billion, compared to $1.5 billion in the fourth quarter of 2019. Cash from operations was after discretionary pension contributions of $1.0 billion in each of the fourth quarters of 2020 and 2019.
Net sales in 2020 were $65.4 billion, compared to $59.8 billion in 2019. Net earnings from continuing operations in 2020 were $6.9 billion, or $24.50 per share, compared to $6.2 billion, or $21.95 per share, in 2019. Cash from operations in 2020 was $8.2 billion, compared to $7.3 billion, in 2019. Cash from operations was after discretionary pension contributions of $1.0 billion in each of 2020 and 2019.
Net sales and operating profit of the corporation’s business segments exclude intersegment sales, cost of sales, and profit as these activities are eliminated in consolidation. Operating profit of the corporation’s business segments includes the corporation’s share of earnings or losses from equity method investees as the operating activities of the investees are closely aligned with the operations of its business segments.
Aeronautics’ net sales in the fourth quarter of 2020 increased $333 million, or 5 percent, compared to the same period in 2019. The increase was primarily attributable to higher net sales of approximately $145 million for the F-16 program due to increased volume on international sustainment contracts and production contracts; about $125 million for higher volume on classified development contracts; and about $40 million for the F-35 program due to increased volume on sustainment and development contracts, which was partially offset by lower volume on production contracts.
Aeronautics’ net sales in 2020 increased $2.6 billion, or 11 percent, compared to 2019. The increase was primarily attributable to higher net sales of approximately $1.8 billion for the F-35 program due to increased volume on sustainment, production, and development contracts; about $450 million for higher volume on classified development contracts; and about $300 million for the F-16 program due to increased volume on international production and sustainment contracts.
MFC’s net sales in the fourth quarter of 2020 increased $97 million, or 4 percent, compared to the same period in 2019. The increase was primarily attributable to higher net sales of approximately $105 million for integrated air and missile defense programs due to increased volume (Terminal High Altitude Area Defense (THAAD) and Patriot Advanced Capability-3 (PAC-3)). This increase was partially offset by lower net sales of about $20 million due to the divestiture of the Distributed Energy Solutions business in November 2019.
MFC’s net sales in 2020 increased $1.1 billion, or 11 percent, compared to 2019. The increase was primarily attributable to higher net sales of approximately $725 million for integrated air and missile defense programs due to increased volume (THAAD and PAC-3); and about $605 million for tactical and strike missile programs due to increased volume (primarily Guided Multiple Launch Rocket Systems (GMLRS), High Mobility Artillery Rocket System (HIMARS), JASSM, and hypersonics). These increases were partially offset by a decrease of approximately $80 million for sensors and global sustainment programs due to lower volume on the Apache sensors program; and about $120 million as a result of the divestiture of the Distributed Energy Solutions business.
RMS’ net sales in the fourth quarter of 2020 increased $323 million, or 8 percent, compared to the same period in 2019. The increase was primarily attributable to higher net sales of approximately $215 million for Sikorsky helicopter programs due to higher volume on production contracts (primarily Combat Rescue Helicopter (CRH), CH-53K and Seahawk); about $130 million for integrated warfare systems and sensors (IWSS) programs due to higher volume (primarily Aegis Combat System (Aegis) and Advanced Hawkeye); and about $45 million for C6ISR (command, control, communications, computers, cyber, combat systems, intelligence, surveillance, and reconnaissance) programs due to higher volume (primarily on undersea combat systems programs). These increases were partially offset by a $70 million decrease for various training and logistics solutions (TLS) programs due to lower volume.
RMS’ net sales in 2020 increased $867 million, or 6 percent, compared to 2019. The increase was primarily attributable to higher net sales of approximately $570 million for Sikorsky helicopter programs due to higher volume on production contracts (primarily Seahawk, VH-92A, CRH, and CH-53K), which was partially offset by lower volume on Black Hawk production programs; about $175 million for IWSS programs due to higher volume (primarily Aegis); and approximately $165 million for C6ISR programs due to higher volume (primarily undersea combat systems). These increases were partially offset by a $55 million decrease for various TLS programs due to lower volume.
Space’s net sales in the fourth quarter of 2020 increased $401 million, or 14 percent, compared to the same period in 2019. The increase was primarily attributable to higher net sales of approximately $245 million for government satellite programs due to higher volume (primarily Next Generation Overhead Persistent Infrared (Next Gen OPIR) and classified contracts); and about $105 million for strategic and missile defense programs due to higher volume (primarily hypersonic development programs, inclusive of impacts due to the acquisition of Integration Innovation Inc.’s (i3) hypersonics portfolio in November 2020).
Space’s net sales in 2020 increased $1.0 billion, or 9 percent, compared to 2019. The increase was primarily attributable to higher net sales of approximately $525 million for government satellite programs due to higher volume (primarily Next Gen OPIR); and about $430 million for strategic and missile defense programs due to higher volume (primarily hypersonic development programs, inclusive of impacts due to the acquisition of i3’s hypersonics portfolio in November 2020).
Source: investors.lockheedmartin.com
