Lockheed Martin reports second quarter 2019 net income of US$1.4 billion

Lockheed Martin has reported second quarter 2019 net sales of US$14.4 billion, compared to US$13.4 billion in the second quarter of 2018. Net earnings in the second quarter of 2019 were US$1.4 billion, or US$5.00 per share, compared to US$1.2 billion, or US$4.05 per share, after severance charges of US$96 million, in the second quarter of 2018. Cash from operations in the second quarter of 2019 was US$1.7 billion, compared to cash used for operations of US$(72) million after pension contributions of US$2.0 billion in the second quarter of 2018.

Aeronautics’ net sales in the second quarter of 2019 increased US$229 million, or 4%, compared to the same period in 2018. The increase was primarily attributable to higher net sales of approximately US$205 million for the F-35 program due to increased volume on production, development and sustainment contracts.

Aeronautics’ operating profit in the second quarter of 2019 increased US$20 million, or 3%, compared to the same period in 2018. Operating profit increased approximately US$15 million for the F-35 program due to increased recurring volume on higher margin production contracts, partially offset by lower risk retirements on production and sustainment contracts. Adjustments not related to volume, including net profit booking rate adjustments and other matters, were US$25 million lower in the second quarter of 2019 compared to the same period in 2018.

“The corporation achieved another quarter of strong operational and financial results across all four of our businesses, which allowed us to grow our backlog to a new record level and to increase our financial outlook for 2019,” said Lockheed Martin Chairman, President and CEO Marillyn Hewson. “Our team remains focused on driving growth, investing in innovative solutions, and creating long-term value for shareholders.”

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