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Lockheed Martin Corporation
Net sales were $9.3 billion, a 6% increase over second quarter 2004 sales of $8.8 billion. Cash provided by operating activities for the second quarter of 2005 was $697 million, after the Corporation contributed $450 million to its defined benefit pension plans' trust to pre-fund the majority of its anticipated 2006 funding requirements.
"We had excellent operational and financial performance in the second quarter driven by double-digit growth in our Systems and IT Group", said Bob Stevens, Chairman, President and CEO. "Every business segment increased earnings in the quarter compared to the prior year, and we're pleased to increase our 2005 outlook for EPS and ROIC. These increases are the result of our continued focus on meeting our customer commitments, capturing new orders, improving productivity, and generating cash."
SUMMARY REPORTED RESULTS AND OUTLOOK
The following table presents the Corporation's results for the quarter and year-to-date periods on a GAAP basis:
REPORTED RESULTS 2nd Quarter Year-to-Date
(In millions, except per 2005 2004 2005 2004
share data)
Net sales $9,295 $8,776 $17,783 $17,123
Operating profit
Segment operating profit $865 $740 $1,627 $1,408
Unallocated corporate, net:
FAS/CAS pension
adjustment (156) (148) (311) (298)
Unusual items 41 --- 58 ---
Other 14 (48) 20 (30)
$764 $544 $1,394 $1,080
Net earnings $461 $296 $830 $587
Diluted earnings per share $1.02 $0.66 $1.85 $1.31
Cash flow from operations $697 $734 $2,245 $1,796
The following table and other sections of this press release contain forward-looking statements, which are based on the Corporation's current expectations. Actual results may differ materially from those projected. See the "Forward-Looking Statements" discussion contained in this press release.
OUTLOOK (In millions, except per share data) 2005 Outlook Net sales $36,500 - $38,000 Diluted earnings per share $3.60 - $3.75 Cash flow from operations At least $3,000 Return on invested capital (ROIC)* > 14.0 %
The increase in projected 2005 diluted earnings per share (prior range $3.35-$3.55) reflects improved operating performance in the Systems & IT Group and the Space Systems segment, a slight reduction in both unallocated corporate expense and the effective tax rate, and the benefit of the gain recognized on the Corporation's Inmarsat investment in the second quarter.
It is the Corporation's practice not to incorporate adjustments to its outlook for proposed acquisitions, pending divestitures or unusual activities until such transactions have been consummated.
* See "Non-GAAP Performance Measures" following the "Forward-Looking Statements" disclosure for ROIC definition and calculation.
Year-to-Date Results
Net sales for the first six months of 2005 were $17.8 billion, a 4% increase over the $17.1 billion recorded in the comparable 2004 period.
Net earnings for the six months ended June 30, 2005 were $830 million ($1.85 per share) compared to $587 million ($1.31 per share) in 2004. In addition to the Inmarsat gain, the 2005 results include the effects of two previously disclosed unusual items recognized in the first quarter: an after- tax gain of $31 million ($0.07 per share) from the sale of the Corporation's Intelsat investment, and an after-tax loss of $19 million ($0.04 per share) related to an impairment in the value of a telecommunications satellite operated by a subsidiary. On a combined basis, these items increased 2005 net earnings by $39 million ($0.09 per share). No unusual items were recognized in the first half of 2004.
Cash Flow and Leverage
Cash from operations for the quarter and six months ended June 30, 2005 was $697 million and $2.2 billion. The Corporation continued to execute its balanced cash deployment strategy during the quarter and first half of the year as follows:
* Repurchased 5.0 million of its common shares at a cost of $320 million
in the quarter and 5.6 million of its common shares at a cost of $355
million during the first six months of the year;
* Paid cash dividends of $112 million in the quarter and $222 million for
the first half of year;
* Made a discretionary prepayment of $450 million to pre-fund our pension
plan trust;
* Paid $410 million in the first quarter to acquire The SYTEX Group, Inc.
and STASYS Limited (additional payments of approximately $110 million
will be made, primarily in 2006);
* Made capital expenditures of $119 million in the quarter and $208
million during the first six months of the year; and
* Retired $37 million of debt in advance of its maturity.
The Corporation's ratio of total debt-to-capitalization was 39% at the end of the second quarter, an improvement from 42% at December 31, 2004. At June 30, 2005, the Corporation's cash and short-term investments were $3.5 billion.
SEGMENT RESULTS
The Corporation operates in five principal business segments: Aeronautics, Electronic Systems, Space Systems, Integrated Systems & Solutions (IS&S), and Information & Technology Services (I&TS). The results of Electronics, IS&S and I&TS have been aggregated and reported as the Systems & IT Group due to the common focus on information technology and systems integration solutions across these segments.
Consistent with the manner in which the Corporation's business segment operating performance is evaluated, unusual items are excluded from segment results and included in "Unallocated corporate (expense) income, net." See our 2004 Form 10-K for a description of "Unallocated corporate (expense) income, net," including the FAS / CAS pension adjustment.
The following table presents the operating results of the Systems & IT Group, Aeronautics and Space Systems and reconciles these amounts to the Corporation's financial results as determined by GAAP.
(In millions) 2nd Quarter Year-to-Date
2005 2004 2005 2004
Net sales
Systems & IT Group
Electronic Systems $2,740 $2,206 $ 4,997 $4,340
Integrated Systems &
Solutions 1,052 964 2,010 1,871
Information &
Technology Services 998 918 1,843 1,770
Systems & IT Group 4,790 4,088 8,850 7,981
Aeronautics 2,879 3,141 5,645 6,016
Space Systems 1,626 1,547 3,288 3,126
Total net sales $9,295 $8,776 $17,783 $17,123
Operating profit
Systems & IT Group
Electronic Systems $295 $220 $527 $422
Integrated Systems &
Solutions 93 81 177 161
Information &
Technology Services 86 71 157 131
Systems & IT Group 474 372 861 714
Aeronautics 245 239 467 445
Space Systems 146 129 299 249
Segment operating profit 865 740 1,627 1,408
Unallocated corporate, net: (101) (196) (233) (328)
Total operating profit $764 $544 $1,394 $1,080
The following discussion compares the operating results of each business segment for the quarter and six months ended June 30, 2005 to the same periods in 2004.
Systems & IT Group
($ millions)
2nd Quarter Year-to-Date
2005 2004 2005 2004
Net sales $4,790 $4,088 $8,850 $7,981
Operating profit $474 $372 $861 $714
Net sales for the Systems & IT Group increased by 17% for the quarter and 11% for the six months ended June 30, 2005 from the 2004 periods. Each of the business segments in the group reported sales growth during the quarter and first half of the year.
In Electronic Systems, for both the quarter and year-to-date periods, the increases in sales were primarily attributable to higher sales volume in surface system programs at Maritime Systems & Sensors (MS2), in fire control programs at Missiles & Fire Control (M&FC) and in platform integration activities at Platform Training & Transportation Solutions (PT&TS). In IS&S, for both the quarter and year-to-date periods, the increases in sales were primarily attributable to higher volume and performance related to intelligence, defense and information assurance activities. In I&TS, for both the quarter and year-to-date periods, the increases in sales were primarily attributable to higher volume in Information Technology, which offset declines in NASA programs. Information Technology's sales growth includes the impact of the March 31, 2005 acquisition of SYTEX and organic growth on existing and new IT programs.
Operating profit for the Systems & IT Group increased by 27% for the quarter and 21% for the six months ended June 30, 2005 compared to the 2004 periods. Each of the business segments in the group reported growth in operating profit during the quarter and first half of the year.
In Electronic Systems, for both the quarter and year-to-date periods, the increases were mainly due to tactical missile program activities and improved performance in fire control programs at M&FC and volume on surface systems programs at MS2. In IS&S, for both the quarter and first half of the year, the increases were primarily attributable to higher volume and performance related to intelligence, defense and information assurance activities. In I&TS, for both the quarter and year-to-date periods, the increases were due to higher volume in Information Technology and improved performance in Defense Services.
Aeronautics
($ millions)
2nd Quarter Year-to-Date
2005 2004 2005 2004
Net sales $2,879 $3,141 $5,645 $6,016
Operating profit $245 $239 $467 $445
Net sales for Aeronautics decreased by 8% for the quarter and 6% for the six months ended June 30, 2005 from the 2004 periods, due to planned declines in Combat Aircraft, which more than offset growth in Air Mobility. Combat Aircraft sales decreased by $320 million in the quarter and $530 million for the six-month period primarily due to declines in F-16 volume, which more than offset higher F/A-22 volume. Increases in C-130J deliveries contributed to the growth in Air Mobility revenue in each period.
Segment operating profit increased by 3% for the quarter and 5% for the six months ended June 30, 2005 from the 2004 periods. Air Mobility operating profit increased for the quarter and year-to-date periods mainly due to profits recognized on C-130J deliveries in 2005. In each period, Combat Aircraft operating profit declined slightly due to lower F-16 volume. In both periods, reduced earnings on the F-35 development program were offset by increased volume and improved performance on F/A-22 and other Combat Aircraft programs.
Space Systems
($ millions)
2nd Quarter Year-to-Date
2005 2004 2005 2004
Net sales $1,626 $1,547 $3,288 $3,126
Operating profit $146 $129 $299 $249
Net sales for Space Systems increased by 5% for both the quarter and the six months ended June 30, 2005 from the 2004 periods. In both periods, sales growth in Strategic & Defensive Missile Systems (S&DMS) and Satellites offset declines in Launch Services. The increases in Satellites were primarily due to higher volume on government satellite programs that more than offset declines in commercial satellite activities. There were no commercial satellite deliveries in 2005 compared to one in the second quarter and two in the first six months of 2004. The increases in S&DMS were attributable to the fleet ballistic missile program. In Launch Services, the decreases in sales were mainly due to fewer Atlas launches in the 2005 periods as compared to 2004. There were no Atlas launches in the second quarter and two in the first six months of 2005 compared to two and four launches in the comparable 2004 periods.
Segment operating profit increased by 13% for the quarter and 20% for the six months ended June 30, 2005, when compared to the 2004 periods. For the quarter, increases in Launch Services operating profit were partially offset by declines in Satellites. In Satellites, a decrease in commercial satellites was partially offset by higher volume on government satellite programs.
For the six-month period, operating profit increased in both Launch Services and Satellites. In Satellites, the increase was due to the impact of higher volume on government satellite programs, which more than offset a decline in commercial satellites.
SECOND QUARTER 2005 HIGHLIGHTS
* Systems & IT increased backlog to more than $30 billion at the end of
the second quarter through the year-to-date capture of important
business with: DoD, SSA, FAA, DFAS, FDIC, NASA and several classified
customers
* Awarded a system design and development contract for the joint U.S.,
German and Italian Medium Extended Air Defense System (MEADS)
* Announced an agreement to create a joint venture -- United Launch
Alliance -- that will combine the government launch operations of
Boeing's Delta and Lockheed Martin's Atlas expendable launch vehicles
* Significant orders and deliveries for U.S. Army programs included:
ordered four Virtual Combat Convoy Trainers; delivered the first
Arrowhead(TM) system to the U.S. Army, with improved targeting and pilot
vision capabilities; and received a production contract for additional
Hellfire missiles
* Laid the keel for the nation's first Littoral Combat Ship, USS Freedom
* The FAA commenced operational use of Lockheed Martin's Advanced
Technologies and Oceanic Procedures (ATOP) system at an air traffic
control facility in New York that will increase the capacity of
international air routes
* Opened the Center for Innovation, a unique collaborative laboratory
where net-centric solutions will be developed in partnership with our
customers to strengthen our nation's military effectiveness, homeland
security, and other vital government missions
* The C-130J achieved two "firsts:" a U.S. Marine Corps KC-130J completed
a combat aerial delivery in Iraq, and a WC-130J "Weatherbird" completed
an operational mission in hurricane winds
* Began full-rate production of the F/A-22 Raptor
* Selected by NASA as a finalist to compete to design and build the new
Crew Exploration Vehicle, which will replace the Space Shuttle
* Successfully completed a Proton launch and received four launch vehicle
orders
* Awarded a contract for a commercial satellite order
* Selected by the U.S. Navy to provide a variety of aircraft maintenance
and modification services for the P-3 Orion under the Sustainment
Web site: http://www.lockheedmartin.com/
Conference call: Lockheed Martin will webcast the earnings conference call (listen-only mode) at 11 a.m. E.T. on July 26, 2005. A live audio broadcast, including relevant charts, will be available on the Investor Relations page of the company's web site at: http://www.lockheedmartin.com/investor.
FORWARD-LOOKING STATEMENTS
Statements in this release that are "forward-looking statements" are based on Lockheed Martin's current expectations and assumptions. Forward-looking statements in this release include estimates of future sales, earnings and cash flow. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results could differ materially because of factors such as: the availability of government funding for our products and services both domestically and internationally; changes in government and customer priorities and requirements (including changes to respond to Department of Defense reviews, Congressional actions, budgetary constraints, cost-cutting initiatives, terrorist threats and homeland security); the impact of continued military operations in Iraq and Afghanistan on funding for existing defense programs; the award or termination of contracts; difficulties in developing and producing operationally advanced technology systems; the timing and customer acceptance of product deliveries; performance issues with key suppliers, subcontractors and customers; financial market and other changes that may impact pension plan assumptions; charges from any future impairment reviews that may result in the recognition of losses, and a reduction in the book value of goodwill or other long-term assets; the future impact of legislation or changes in accounting or tax rules, interpretations or pronouncements; the future impact of acquisitions or divestitures, joint ventures or teaming arrangements; the outcome of legal proceedings and other contingencies (including lawsuits, government investigations or audits, and environmental remediation efforts); the competitive environment for government and information technology products and services; and economic, business and political conditions domestically and internationally.
These are only some of the factors that may affect the forward-looking statements contained in this press release. For further information regarding risks and uncertainties associated with Lockheed Martin's business, please refer to the Corporation's SEC filings, including the "Management's Discussion and Analysis of Results of Operations and Financial Condition," "Risk Factors and Forward-Looking Statements" and "Legal Proceedings" sections of the Corporation's 2004 annual report on Form 10-K, copies of which may be obtained at the Corporation's website: http://www.lockheedmartin.com/.
It is the Corporation's policy to only update or reconfirm its earnings, sales and cash outlook by issuing a press release. The Corporation generally plans to provide a forward-looking outlook as part of its quarterly earnings release but reserves the right to provide outlook at different intervals or to revise its practice in future periods. All information in this release is as of July 25, 2005. Lockheed Martin undertakes no duty to update any forward- looking statement to reflect subsequent events, actual results or changes in the Corporation's expectations. We also disclaim any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.
NON-GAAP PERFORMANCE MEASURES
The Corporation defines return on invested capital (ROIC) as net earnings plus after-tax interest expense divided by average invested capital (stockholders' equity plus debt). The Corporation believes that reporting ROIC provides investors with greater visibility into how effectively Lockheed Martin uses the capital invested in its operations. The Corporation uses ROIC to evaluate multi-year investment decisions and as a long-term performance measure, and also plans to use ROIC as a factor in evaluating management performance for incentive compensation purposes in 2005. ROIC is not a measure of financial performance under generally accepted accounting principles in the U.S., and may not be defined and calculated by other companies in the same manner. ROIC should not be considered in isolation or as an alternative to net earnings as an indicator of performance. The Corporation calculates ROIC as follows:
(In millions, except percentages) 2005 Outlook 2004 Actual
Net Earnings Combined $1,266
Interest Expense (multiplied by 65%)(1) 276
Return > $ 1,840 $1,542
Average debt(2,4) Combined 5,932
Average equity(3,4) 7,015
Average Invested Capital < $ 13,150 $12,947
Return on invested capital > 14.0 % 11.9 %
1 Represents after-tax interest expense utilizing the federal statutory
rate of 35%.
2 Debt consists of long-term debt, including current maturities, and
short-term borrowings (if any).
3 Equity includes non-cash adjustments for other comprehensive losses,
primarily for the additional minimum pension liability.
4 Yearly averages are calculated using balances at the start of the year
and at the end of each quarter.
LOCKHEED MARTIN CORPORATION
Consolidated Statement of Earnings
Preliminary and Unaudited
(In millions, except per share data and percentages)
THREE MONTHS SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
2005 2004 2005 2004
Net Sales $9,295 $8,776 $17,783 $17,123
Cost of Sales 8,637 8,243 16,583 16,122
658 533 1,200 1,001
Other Income and (Expenses), net 106 11 194 79
Operating Profit 764 544 1,394 1,080
Interest Expense 94 106 184 214
Earnings before Income Taxes 670 438 1,210 866
Income Tax Expense 209 142 380 279
Net Earnings $461 $296 $830 $587
Effective Tax Rate 31.2% 32.4% 31.4% 32.2%
Earnings per Common Share:
Basic $1.03 $0.67 $1.87 $1.32
Diluted $1.02 $0.66 $1.85 $1.31
Average Number of Shares Outstanding:
Basic 445.3 443.9 443.3 444.1
Diluted 451.3 447.0 448.9 447.2
LOCKHEED MARTIN CORPORATION
Net Sales, Operating Profit and Margins
Preliminary and Unaudited
(In millions, except percentages)
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
2005 2004 %Change 2005 2004 %Change
Net sales:
Systems & IT
Group:
Electronic
Systems $2,740 $2,206 $4,997 $4,340
Integrated
Systems &
Solutions 1,052 964 2,010 1,871
Information &
Technology
Services 998 918 1,843 1,770
Systems &
IT Group 4,790 4,088 17% 8,850 7,981 11%
Aeronautics 2,879 3,141 (8%) 5,645 6,016 (6%)
Space Systems 1,626 1,547 5% 3,288 3,126 5%
Total net
sales $9,295 $8,776 6% $17,783 $17,123 4%
Operating
profit:
Systems & IT
Group:
Electronic
Systems $295 $220 $527 $422
Integrated
Systems &
Solutions 93 81 177 161
Information &
Technology
Services 86 71 157 131
Systems &
IT Group 474 372 27% 861 714 21%
Aeronautics 245 239 3% 467 445 5%
Space Systems 146 129 13% 299 249 20%
Segment
operating
profit 865 740 17% 1,627 1,408 16%
Unallocated
corporate
expense,
net(1) (101) (196) (233) (328)
Total
operating
profit $764 $544 40% $1,394 $1,080 29%
Segment margins:
Systems & IT
Group:
Electronic
Systems 10.8% 10.0% 10.5% 9.7%
Integrated
Systems &
Solutions 8.8% 8.4% 8.8% 8.6%
Information &
Technology
Services 8.6% 7.7% 8.5% 7.4%
Systems &
IT Group 9.9% 9.1% 9.7% 8.9%
Aeronautics 8.5% 7.6% 8.3% 7.4%
Space Systems 9.0% 8.3% 9.1% 8.0%
Total Segments 9.3% 8.4% 9.1% 8.2%
1 "Unallocated corporate expense, net" includes the FAS/CAS pension
adjustment, earnings and losses from equity investments, interest
income, costs for stock-based compensation programs, unusual items not
considered in the evaluation of segment operating performance,
corporate costs not allocated to the operating segments and
miscellaneous corporate activities.
LOCKHEED MARTIN CORPORATION
Selected Financial Data
Preliminary and Unaudited
(In millions)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2005 2004 2005 2004
Summary of unallocated corporate
expense, net
FAS/CAS pension adjustment $(156) $(148) $(311) $(298)
Items not considered in segment
operating performance 41 - 58 -
Other, net 14 (48) 20 (30)
Unallocated corporate
expense, net $(101) $(196) $(233) $(328)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2005 2004 2005 2004
FAS/CAS pension adjustment
FAS 87 expense $(280) $(220) $(559) $(443)
Less: CAS costs (124) (72) (248) (145)
FAS/CAS pension
adjustment - expense $(156) $(148) $(311) $(298)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, 2005 JUNE 30, 2005
Operating Net Earnings Operating Net Earnings
profit earnings (loss) profit earnings (loss)
(loss) (loss) per (loss) (loss) per
share share
Discrete Items
Gain on
Intelsat sale $- $- $- $47 $31 $0.07
LMI impairment - - - (30) (19) (0.04)
Inmarsat gain 41 27 0.06 41 27 0.06
$41 $27 $0.06 $58 $39 $0.09
LOCKHEED MARTIN CORPORATION
Selected Financial Data
Preliminary and Unaudited
(In millions)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2005 2004 2005 2004
Depreciation and amortization of
property, plant and equipment
Systems & IT Group:
Electronic Systems $43 $41 $84 $80
Integrated Systems & Solutions 12 9 20 16
Information & Technology Services 4 12 7 25
Systems & IT Group 59 62 111 121
Aeronautics 31 23 60 46
Space Systems 32 25 63 58
Segments 122 110 234 225
Unallocated corporate expense, net 10 9 24 20
Total depreciation and
amortization $132 $119 $258 $245
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2005 2004 2005 2004
Amortization of purchased intangibles
Systems & IT Group:
Electronic Systems $12 $11 $24 $23
Integrated Systems & Solutions 3 4 7 7
Information & Technology Services 5 3 9 7
Systems & IT Group 20 18 40 37
Aeronautics 13 13 25 25
Space Systems 2 2 4 4
Segments 35 33 69 66
Unallocated corporate expense, net 3 2 6 5
Total amortization of purchased
intangibles $38 $35 $75 $71
LOCKHEED MARTIN CORPORATION
Consolidated Condensed Balance Sheet
Preliminary and Unaudited
(In millions)
JUNE 30, DECEMBER 31,
2005 2004
Assets
Cash and cash equivalents $3,062 $1,060
Short-term investments 414 396
Accounts receivable 4,287 4,094
Inventories 1,755 1,864
Other current assets 1,658 1,539
Total current assets 11,176 8,953
Property, plant and equipment, net 3,552 3,599
Investments in equity securities 312 812
Goodwill 8,299 7,892
Purchased intangibles, net 633 672
Prepaid pension asset 1,052 1,030
Other noncurrent assets 2,369 2,596
Total assets $27,393 $25,554
Liabilities and Stockholders' Equity
Accounts payable $1,933 $1,726
Customer advances and amounts in
excess of costs incurred 4,572 4,028
Other accrued expenses 3,036 2,797
Current maturities of long-term debt 208 15
Total current liabilities 9,749 8,566
Long-term debt 4,874 5,104
Accrued pension liabilities 1,717 1,660
Post-retirement and other noncurrent
liabilities 3,167 3,203
Stockholders' equity 7,886 7,021
Total liabilities and
stockholders' equity $27,393 $25,554
LOCKHEED MARTIN CORPORATION
Consolidated Condensed Statement of Cash Flows
Preliminary and Unaudited
(In millions)
SIX MONTHS ENDED JUNE 30,
2005 2004
Operating Activities
Net earnings $830 $587
Adjustments to reconcile net earnings
to net cash provided by
operating activities:
Depreciation and amortization of
property, plant and equipment 258 245
Amortization of purchased intangibles 75 71
Changes in operating assets and
liabilities
Receivables (124) 365
Inventories 107 434
Accounts payable 194 85
Customer advances and amounts in
excess of costs incurred 544 (494)
Other 361 503
Net cash provided by operating
activities 2,245 1,796
Investing Activities
Expenditures for property, plant and
equipment (208) (260)
(Purchase) sale of short-term
investments, net (18) 240
Acquisitions of businesses /
investments in affiliated companies (413) -
Divestitures and other activities 803 15
Other 3 17
Net cash provided by investing
activities 167 12
Financing Activities
Repayments related to long-term debt (39) (137)
Common stock activity, net (149) (242)
Common stock dividends (222) (196)
Net cash used for financing
activities (410) (575)
Net increase in cash and cash
equivalents 2,002 1,233
Cash and cash equivalents at
beginning of period 1,060 1,010
Cash and cash equivalents at end of
period $3,062 $2,243
LOCKHEED MARTIN CORPORATION
Consolidated Statement of Stockholders' Equity
Preliminary and Unaudited
(In millions)
Accumulated
Other Total
Additional Unearned Compre- Stock-
Common Paid-In Retained Compen- hensive holders'
Stock Capital Earnings sation Loss Equity
Balance at
January 1,
2005 $438 $2,223 $5,915 $(23) $(1,532) $7,021
Net earnings 830 830
Common stock
dividends (222) (222)
Common stock
activity, net 3 104 5 112
Other
comprehensive
income 145 145
Balance at
June 30, 2005 $441 $2,327 $6,523 $(18) $(1,387) $7,886
LOCKHEED MARTIN CORPORATION
Operating Data
Preliminary and Unaudited
(In millions)
JUNE 30, DECEMBER 31,
2005 2004
Backlog
Systems & IT Group:
Electronic Systems $20,982 $18,239
Integrated Systems & Solutions 4,426 4,586
Information & Technology Services 4,704 4,560
Systems & IT Group 30,112 27,385
Aeronautics 26,796 30,489
Space Systems 16,302 16,112
Total $73,210 $73,986
SOURCE: Lockheed Martin Corporation
CONTACT: News Media: Craig Quigley, +1-301-897-6352, or Investor
Relations: James Ryan, +1-301-897-6584 or Mike Gabaly, +1-301-897-6455, all of
Lockheed Martin Corporation
Web site: http://www.lockheedmartin.com/
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