Lockheed reports drop in IT revenue

Lockheed Martin Corp.’s second quarter financials saw an increase in both revenue and earnings, but its IT business saw revenue and profits fall.

Overall, the company pulled in $11.9 billion in revenue for the quarter ended June 24, compared to $11.5 billion for the same quarter last year. Net earnings reached $781 million versus $748 million a year ago, according to the company's latest earnings report.

Cash flow saw a drop from $894 million in the quarter last year to $845 million this year.

Lockheed Chairman and CEO Bob Stevens described it as a solid quarter.

The one not so bright spot for the company was the information systems and global solutions group, which was the only one of Lockheed’s four segments that reported a drop in revenue for the quarter.

Revenue for the group was $2.3 billion for the 2012 second quarter, compared to $2.4 billion last year. Operating profits also were down slightly, dropping to $208 million versus $213 million a year ago.

So far in 2012, revenue for the information systems and global solutions group is off 3 percent at $396 million compared to $407 million last year.

Several programs contributed to the drop in sales for the group, including the end of the Airborne Maritime Fixed Station Joint Tactical Radio System program; the end of the United Kingdom Census program, and the completion of the Outsourcing Desktop Initiative program for NASA.