Lockheed weathers slow start to 2012
- By Matthew Weigelt
- Apr 27, 2012
Lockheed Martin Corp.’s sales in its information systems and global solutions division decreased 3 percent in the first quarter of the year compared to last year, the company reported April 26.
Net sales reached $2.09 billion in 2012, but the corporation had $2.15 billion in sales in the first quarter of 2011. The $59 million decrease came primarily from lower overall sales of $90 million due to the end of the Airborne Maritime Fixed Station Joint Tactical Radio System program and the completion of NASA’s Outsourcing Desktop Initiative program. However, the company had more sales on other programs, which offset most of those declines.
The segment’s operating profit decreased from $194 million in 2011 to $188 million in 2012. The decline was due to lower net sales.
As a whole though, Lockheed Martin’s net sales increased 6 percent to $11.3 billion compared to last year. Net sales in the first quarter of 2011 reached $10.6 billion.
“Our strong first quarter results reflect the strength of our portfolio and the commitment of our team to deliver value to our customers and shareholders,” said Bob Stevens, the company's chairman and CEO. “Throughout the remainder of 2012, we will focus on reducing costs and improving program execution to remain competitive and deliver value.”
Stevens this week announced his plan to retire as CEO at the end of 2012. Chris Kubasik, president and chief operating officer, will step in as CEO.
Lockheed Martin, of Bethesda, Md., ranked No. 1 on Washington Technology’s 2011 Top 100 list of the largest federal government contractors
Matthew Weigelt is a freelance journalist who writes about acquisition and procurement.