Lockheed Martin reports third-quarter 2021 financial results

Lockheed Martin has reported third-quarter 2021 net sales of US$16.0 billion, compared to US$16.5 billion in the third quarter of 2020. Net earnings from continuing operations in the third quarter of 2021 were US$614 million, compared to US$1.8 billion in the third quarter of 2020. Cash from operations was US$1.9 billion in the third quarter of 2021 and 2020.

Third quarter 2021 net earnings include a noncash pension settlement charge of US$1.7 billion related to the purchase of group annuity contracts to transfer US$4.9 billion of gross pension obligations and related plan assets to an insurance company and unrealised gains of US$98 million due to increases in the fair value of investments held in the Lockheed Martin Ventures Fund.

The company expects 2022 net sales to decline from expected 2021 levels to approximately US$66 billion and 2022 total business segment operating margin to be approximately 11.0%. Cash from operations in 2022 is expected to be greater than or equal to US$8.4 billion, which excludes a potential decrease in 2022 cash from operations of up to US$2.0 billion if the provisions in the Tax Cuts and Jobs Act of 2017 that eliminate the option to immediately deduct research and development expenditures in the period incurred and requires companies to amortise such expenditures over five years is not modified or repealed by Congress before it takes effect on January 1, 2022. Although the company continues to have ongoing discussions with members of Congress, both on its own and with other industries through coalitions, it has no assurance that these provisions will be modified or repealed. (£1.00 = US$1.37 at time of publication).

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