Lockheed Martin saved by civilian agencies in 2010
Company reports profit drop in Information Systems and Global Solutions sales
- By Matthew Weigelt
- Jan 27, 2011
Lockheed Martin Corp. today said that business from civilian agencies kept its IT solutions segment’s profits from falling more than 1 percent last year.
The giant government contractor saw profits in its Information Systems and Global Solutions (IS&GS) business fall by $5 million, from $895 million in 2009 to $890 million in 2010. Last year, profits from business with the defense-related agencies declined $27 million due primarily to decreases in the level of favorable performance adjustments on mission and combat systems, the company said.
Meanwhile, Lockheed saw a $19 million increase in profits from civilian agencies because of higher volume on enterprise civilian services. Business in the area of intelligence didn’t change.
Overall sales for IS&GS increased compared to 2009. The segment’s net sales grew from $9.60 billion in 2009 to $9.95 billion in 2010, a 4-percent increase.
Business in the civilian and defense areas also increased in 2010. The civilian sector had a $437 million increase due to more enterprise civilian services, and sales grew by $20 million in the defense arena thanks to more work on mission and combat systems.
However, intelligence programs sales declined by $106 million as agencies bought fewer security solutions.
As a whole, Lockheed Martin increased its overall company sales by 4 percent for 2010. Sales rose from $44 billion in 2009 to $45.8 billion in 2010.
As the year ended, the company had $78.2 billion in backlog work, with $20.5 billion in fourth-quarter orders.
“For the year, sales and backlog grew," said Bob Stevens, Lockheed chairman and CEO, in the earnings announcement. "Combined with strong cash flow, I believe it was very solid performance in a very demanding year."
Officials say they expect more growth in 2011, forecasting between $45.8 billion and $47.3 billion in net sales in 2011.
Lockheed Martin, of Bethesda, Md., ranks No. 1 on Washington Technology’s 2009 and 2010 Top 100 lists of the largest federal government contractors.
Matthew Weigelt is a freelance journalist who writes about acquisition and procurement.