Lockheed Martin Aircraft Center

Lockheed Martin takes flight in times of crisis. A leading global military contractor, the company serves the civil and commercial sectors, but it is firmly on the defense/government side of the aerospace industry; sales to the US government accounts for about 82% of revenue, with the US DoD accounting for about 60%. Aeronautics makes combat aircraft and UAVs, while Information Systems & Global Services makes data protection and intelligence equipment. Other segments include Space Systems (satellites and space travel), Missiles & Fire Control (air and missile defense systems), and Mission Systems & Training (ship and submarine combat technology).

Operations

Lockheed Martin operates through five business segments. Aeronautics is its largest, representing 32% of its total sales in 2012. Information Systems & Global Solutions generated 19%, while Space Systems accounted for 17%. Other segments include Missiles & Fire Control (16%) and Mission Systems & Training (16%).

Lockheed Martin's key subsidiaries include Loral Corporation, United Space Alliance, Aculight Corporation, and Sippican.

Sales and Marketing

Though the DoD is undergoing budget cuts, it is still committed to several important Lockheed Martin product initiatives, including the F-35, the Global Positioning Satellite program, the Advanced Extremely High Frequency system, the Space-Based Infrared System, Phased Adaptive Approach missile defense system, the DDG-51 AEGIS destroyer, and the U-2 manned ISR aircraft.  

Financial Performance

Lockheed Martin has enjoyed consistent revenue and profit levels over the course of the last five years. Revenues increased by 2% from $46.5 billion in 2011 to $47.2 billion in 2012 -- a historic milestone for the company. Profits were up 3% from $2.7 billion in 2011 to nearly $2.8 billion in 2012.

The company was helped by a 2% increase in its product sales, which represents 80% of its total sales in 2012. Sales in its Aeronautics segment were up by 4%, while Mission Systems and Training sales surged by 6% during 2012. Lockheed Martin also attributes the growth to higher risk retirements on key programs.

Strategy

Lockheed Martin is focusing on serving the DoD's new priorities as it tries to become leaner under budget constraints. These priorities include logistics, information technology, and network and cyber security. It finds further optimism for its defense business in the pervasiveness of its products in all aspects of defense theaters. The military realms of land, sea, air, and space will continue to find use for the Aegis Combat System, the PAC-3 missile program, and the THAAD.

As other government departments and agencies also suffer with budget constraints, Lockheed Martin is similarly focusing on the priorities they have identified for leaner operations. For government customers that include the Social Security Administration and the Centers for Medicare and Medicaid Services, Lockheed Martin has been providing service in critical intelligence, knowledge management, and e-Government.

The company believes that the government's ongoing focus on homeland security will boost opportunities for business in air traffic management, cargo security, and biohazard detection, among other security functions. The company is also looking to grow its international sales, primarily from foreign government customers in need of its Aeronautics and Electronic Systems products and services.

Mergers and Acquisitions

In 2012 the company spent $304 million on acquisitions that included CDL Systems, a Canada-based provider of vehicle control station software, and Chandler/May, an expert in the designing and manufacturing of mission critical missile systems. It also picked up Procerus Technologies, which specializes in autopilot and other avionics for micro unmanned aerial systems.

In 2011 Lockheed Martin forked over $649 million for acquisitions that included QTC Holdings, which serves the US government with outsourced medical evaluation services, and commercial aviation simulation provider Sim-Industries. Also that year the company initiated some divestments, selling Pacific Architects and Engineers and putting up Savi Technology for sale. 

Ownership

State Street Corporation owns 19% of the company, while Capital World Investors has a 12% stake.

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Lockheed Martin Aircraft Center


244 Terminal Rd
Greenville, SC 29605-5508
Fax: 1 (864) 2993350
www.lockheedmartin.com

STATS


  • Employer Type: Unknown
  • Human Resources Compliance And Regulatory: Janice Lehman
  • Branch Manager: Steven Walker

Major Office Locations

  • Greenville, SC

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