Lockheed Martin Reports Fourth Quarter and Full Year 2018 Results
(Source: Lockheed Martin; issued Jan. 29, 2019)
BETHESDA, Md. --- Lockheed Martin Corporation today reported fourth quarter 2018 net sales of $14.4 billion, compared to $13.8 billion in the fourth quarter of 2017. Net earnings from continuing operations in the fourth quarter of 2018 was $1.3 billion, or $4.39 per share, compared to a net loss from continuing operations of $817 million, or $2.85 per share, in the fourth quarter of 2017.

The net loss from continuing operations in the fourth quarter of 2017 included a net one-time charge of $2.0 billion ($6.88 per share), substantially all of which was non-cash, primarily related to the estimated impacts of the Tax Cuts and Jobs Act (the "Tax Act").

Excluding the estimated impacts of the Tax Act, adjusted earnings from continuing operations were $1.2 billion, or $4.03 per share, in the fourth quarter of 2017. Cash from operations in the fourth quarter of 2018 was $2.2 billion, compared to $1.5 billion in the fourth quarter of 2017.

Net sales in 2018 was $53.8 billion, compared to $50.0 billion in 2017. Net earnings from continuing operations in 2018 was $5.0 billion, or $17.59 per share, compared to $1.9 billion, or $6.50 per share, in 2017.

Earnings from continuing operations in 2017 included a net one-time charge of $2.0 billion ($6.77 per share), substantially all of which was non-cash, primarily related to the estimated impacts of the Tax Act. Excluding the estimated impacts of the Tax Act, adjusted earnings from continuing operations was $3.9 billion, or $13.27 per share, in 2017.

Cash from operations in 2018 was $3.1 billion, after annual pension contributions of $5.0 billion, compared to cash from operations of $6.5 billion in 2017, with no pension contributions.

"The corporation completed another year of outstanding operational accomplishments and strong financial performance," said Lockheed Martin Chairman, President and CEO Marillyn Hewson. "As we look ahead to 2019, we remain focused on performing with excellence for customers, and our record backlog and differentiating portfolio have us well-positioned for continued growth and long-term value creation for shareholders."

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Excerpt on Aeronautics sector

Aeronautics' net sales in 2018 ($21.2 billion) increased to $1.8 billion, or 9 percent, compared to 2017 ($19.4 billion).

The increase was primarily attributable to higher net sales of approximately $1.5 billion for the F-35 program due to increased volume on production and sustainment, partially offset by lower volume on development activities; about $300 million for other programs due to higher volume (primarily ADP); about $210 million for the F-16 program due to increased volume on modernization contracts; and about $110 million for the F-22 program due to increased sustainment volume.

These increases were partially offset by a decrease of approximately $130 million for the C-130 program primarily due to lower volume on sustainment activities and about $130 million for the C-5 program due to lower volume as deliveries under the current production modernization program were completed in the third quarter of 2018.

Aeronautics' operating profit in 2018 ($2.27 billion) increased $96 million, or 4 percent, compared to 2017 ($2.17 billion). Operating profit increased approximately $250 million for the F-35 program due to increased volume on higher margin production contracts and new development activities and better performance on sustainment.

This increase was partially offset by a decrease of about $65 million for the C-130 program due to lower risk retirements and lower sustainment volume; about $60 million for the F-16 program due to lower risk retirements; and about $35 million for the C-5 program due to lower risk retirements and lower production volume.

Adjustments not related to volume, primarily net profit booking rate adjustments, were about $175 million lower in 2018 compared to 2017.


Headquartered in Bethesda, Maryland, Lockheed Martin Corporation is a global security and aerospace company that employs approximately 105,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.


Click here for the full earnings statement, on the Lockheed Martin website.

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