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HEADLINE: Lockheed Martin Q4 results boosted by higher aircraft deliveries
Lockheed Martin Corp fourth-quarter reported pro forma
earnings per share of 49 cents, one penny ahead of analysts' estimates and 11
cents above last year's level, due to increased deliveries in the aeronautics
The company, which reported net sales for the quarter of 7.334 bln usd
compared with 7.315 bln in 2000, had several special charges impacting its
financial statement.
The exit from the global telecom services unit and the write-down of its
investment in AstroLink resulted in a 384 mln usd charge, equivalent to 89
cents per share.
On a Generally Accepted Accounting Principles (GAAP) basis, Lockheed Martin
reported a fourth quarter loss per share from continuing operations of 34
cents. Including the 89 cents charge for non-recurring and unusual items and a
six cents per share loss from the impact of net operating loss from
discontinued operations, the company arrived to its pro forma EPS of 49 cents.
However, Lockheed Martin also took a total charge of 3.15 usd for total
discontinued operations, leading to a net loss per share of 3.49 usd.
For the quarter, Lockheed used 368 mln usd of free cash, leaving the total
free cash flow for the year at 2 bln usd. Improved free cash flow, which is
expected to be 1 bln usd in 2002 and at least 1.6 bln in 2002 and 2003, was
mostly a result of reduced inventories.
In the year, the company reduced total debt by 2.4 bln usd.
For 2002, management expects EPS from continuing operations of 2.45-2.50
usd, well above the current Thomson Financial/First Call consensus estimate of
2.17 usd. In 2003, bottom line results from continuing operations are seen
rising by 10- pct over the 2002 level
Sales in 2002 are expected to be 25.0-25.8 bln usd, while revenues for 2003
are expected to be in the 26.4-27.4 bln usd range.
Aeronautics, with sales up by 28 pct to 1.993 bln usd, was the company's
best performing units, mainly due to the delivery of 10 C130-Js transport
aircraft, up from six in the last three months of 2000.
Additionally, sales increased due to a higher volume of F-22 fighter jets
production activities.
The unit, which is seen experiencing strong growth in coming years due to
the production of the new F-35 Joint Strike Fighter, also saw a 30 basis points
expansion in margins to 6.6 pct.
The system integration unit, with sales down to 2.732 bln usd from 2.917
bln, was hurt by earlier divestitures and to volume declines in the platform
integration and distribution technology lines of business at the Owego
Lockheed's space systems arm, with sales down by 13 pct to 1.813 bln also
hurt overall result. Weakness was mostly due to weakness in the commercial
satellite business, with fewer launches resulting from a soft economic
environment and depressed capital investment levels at commercial satellite
However, margins increased by 170 basis points to 5.8 pct.
Technical services, with a one pct sales increase to 791 mln usd, was
mostly flat, while pro forma margins declined to 3.8 pct from 5.1 pct in the
last three months of 2000.
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