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 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 17% of its net sales in 2013.

Operations

Lockheed Martin operates through five business segments. Aeronautics is its largest, representing 31% of its total sales in 2013. Information Systems & Global Solutions (IS&GS) generated 18%, 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

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. The next year, however, revenues decreased 4% to $45.4 billion in 2013.

The revenue decline in 2013 was attributed to decreases across four out of five of its segments: Aeronautics (6%), IS&GS (5%), Mission Systems and Training (6%), and Space Systems (5%). Throughout the year, the company was affected by lower net sales for its F-16 program due to fewer aircraft deliveries (13 aircraft delivered in 2013 compared to 37 delivered in 2012).

Profits have also remained consistent, rising 9% from $2.75 billion in 2012 to $2.98 billion in 2013. The rise in profits was fueled by a decline in product costs due to fewer aircraft deliveries and lower volume during 2013. Lockheed Martin's cash flow from operations have steadily increased, with the exception of 2012, when it significantly declined but returned back to typical levels in 2013.

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 2013 Lockheed Martin acquired Amor Group --- a company specializing in information technology products for the energy, transport, and public services sectors -- based in the UK. The deal expanded Lockheed's international capabilities and expertise in information technology, civil government services, and the energy market.

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.

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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
  • Vp: David Mitchell
  • Branch Manager: Steven Walker

Major Office Locations

  • Greenville, SC

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