About 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 80% of revenue, with the US DoD accounting for some 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).

Geographic Reach

The company maintains a global presence in about 30 countries across Asia, US, Europe, Africa, and the Middle East. International customers accounted for 20% of its net sales in 2014.

Operations

Lockheed Martin operates through five business segments. Aeronautics is its largest, representing 32% of its total sales in 2014. Information Systems & Global Solutions (IS&GS) generated 17%, while Space Systems also accounted for 18%. Other segments include Missiles & Fire Control (17%) 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

After achieving a revenue milestone of $47.2 billion in 2012, Lockheed Martin saw its revenues hover around the $45 billion mark for both 2013 and 2014. Its profits, however, surged 21% from almost $3 billion in 2013 to peak at a record-setting $3.6 billion in 2014.

The company's revenues remained consistent for 2014 due to higher product sales from its Aeronautics and Missiles & Fire Control, but this growth was offset by lower product sales from Information Systems & Global Solutions and Space Systems.

The unprecedented rise in profits for 2014 was fueled by a decline in service costs associated with the Aeronautics and Missiles & Fire Control segments and an absence of severance charges which were recorded in 2013. Lockheed Martin's cash flow from operations have fluctuated over the years, going up in 2013, but decreasing by 15% in 2014, due to higher cash outflows from customer advances and amounts in excess of costs incurred.

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

Throughout 2014, the company spent a total of $898 million on acquisitions. That year it completed the acquisition of Zeta Associates, a Virginia-based specialist in technology powering critical national security missions. The deal enhanced its Space Systems business area and also strengthened its ability to deliver ground, air, and space-based intelligence in support of its customers’ essential missions.

Lockheed Martin in 2014 also snapped up Systems Made Simple, a leading provider of health information technology to the US federal government. The acquisition allowed the company to deliver a broader portfolio of capabilities to its health care customers. Systems Made Simple will be integrated into the Information Systems & Global Solutions segment.

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Lockheed Martin Aircraft Center

244 Terminal Rd
Greenville, SC 29605-5508
Fax: 1 (864) 299-3350

Stats

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

Major Office Locations

  • Greenville, SC

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