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 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). The company traces its historical roots back to 1912.

Operations

Lockheed Martin operates through several business segments. Aeronautics is its largest, representing 34% of its total sales in 2015. Information Systems & Global Solutions (IS&GS; spun-off in 2016) generated 12%, while Space Systems also accounted for 20%. Other segments include Missiles & Fire Control (15%) and Mission Systems & Training (19%).

In mid-2016, the company spun-off its IS&GS segment and merged it with Leidos , a provider of national security services, in a deal valued at around $5 billion. The transaction allowed Lockheed Martin to focus on its core aerospace and defense operations.

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

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 21% of its net sales in 2015.

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's revenues have remained consistent the last several years, jumping 1% from $45.6 billion in 2014 to $46.1 billion in 2015. Its profits also remained static, hovering around the $3.6 billion mark for 2014 and 2015.

The marginal growth for 2015 was fueled by increased revenue from both its Aeronautics and Mission Systems and Training segments. Aeronautics generated higher sales for F-35 production contracts due to increased volume on aircraft production and higher sales for the C-5 program due to increased deliveries. Mission Systems and Training earned extra sales from the company's Sikorsky acquisition.

Lockheed Martin's cash flow from operations has fluctuated over the years; after going down in 2014, cash flow surged by 32% in 2015, mostly due to favorable changes in post-retirement benefit plans.

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.

Adhering to this strategy, in mid-2016 the company sold its IS&GS segment to Leidos , a provider of national security services, in a deal valued at around $5 billion. The transaction allowed Lockheed Martin to focus on its core aerospace and defense operations.

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 late 2015, the company acquired Black Hawk helicopter manufacturer Sikorsky Aircraft for $9 billion. Lockheed Martin bought Sikorsky from United Technologies and will integrate its operations into its Mission Systems & Training segment.

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
Phone: 1 (864) 422-6262
Fax: 1 (864) 299-3350

Stats

  • Employer Type: Public
  • Human Resources Compliance and Regulatory: Janice Lehman
  • Branch Manager: Steven Walker
  • Employees: 8,200

Major Office Locations

  • Greenville, SC