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Lockheed Martin Corp.

July 24, 2007: Lockheed Martin Corporation (NYSE:LMT) today reported a sharp rise in earnings 34% for the second quarter 2007. Its earnings totalled $778 million in the quarter ($1.82 per diluted share), compared to $580 million ($1.34 per diluted share) in 2006. The increased its expectations for earning per share level for the whole year to the range of $6.65 - $6.80, an increase of $0.45.


The main contributor to this increase was LM's Aeronautics unit, which improved its profit by 39%, contributing about a third of the total sales in the quarter ($3.1 billion). The improvement reflects increased production volumes and sales of combat aircraft, specifically the F-22 and F-16 programs as well as sustainment and support activities. The company's Net sales increased only 7% over second quarter 2006 sales to $10.7 billion. Cash from operations for the second quarter of 2007 was $1.4 billion.

April 24, 2007: Lockheed Martin Corporation (NYSE:LMT) today reported first quarter 2007 net earnings of $690 million ($1.60 per diluted share), compared to $591 million ($1.34 per diluted share) in 2006. Net sales were $9.3 billion, a 1% increase over first quarter 2006 sales of $9.2 billion. Cash from operations for the first quarter of 2007 was $1.5 billion, compared to $1.2 billion in 2006. The company invested $95 million in acquisition activities and made capital expenditures of $84 million during the reported period. It used some of the cash to repay a long term debt of $17 million, and repurchase 7.6 million shares at a total cost of $739 million. The company also declared a $148 million dividend, which was paid early in Q2.

While Lockheed Martin is most recognized with its aerospace business, net sales at of Lockheed Martin's aeronautics business remained flat for the first quarter, compared to 2006. Declines in air mobility, due to lower volume on the C-5 and other air mobility programs and lower volume production and support on F-22 and F-117 programs offset increased sales F-35 volume and other aeronautics programs. Further increase was recorded with higher volume in logistics services activities. Aeronautics business remained the largest segment of Lockheed Martin's operations, with total sales of $2.821 billion in the first quarter. Sales of electronic systems totaled $2.515 and demonstrated an increase of 3% in the first quarter, mainly due to higher volume in platform integration activities and naval radar business which offset declines in air defense programs.

Information Systems & Global Services demonstrated an increased in net sales in all three of the segment's lines of business, with a total growth of 9%. The increase was derived by organic growth and, partly, by the acquisition of MSD in 2007 and Aspen Systems Corporation, Pacific Architects and Engineers Inc. and Savi Technology Inc. in 2006. Operating profit for IS&GS increased by 11% for the quarter.

Space Systems decreased its sales by 9% for the quarter. This decline was expected, since the company divested its activities in the international launch services business in the fourth quarter of 2006 in parallel to the formation of United Launch Alliance (ULA) joint venture with Boeing, resulting in shifting of Atlas launch vehicles and related support to the U.S. Government, to ULA. The upside of Lockheed Martin's space related activities was an increases in Strategic & Defensive Missile Systems (S&DMS) and higher volume activities in satellites sales to the US government which more than offset the absence of commercial satellite deliveries in the period.



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