Lockheed Martin’s net sales rose 9% to USD15.7 billion in the first quarter of 2020, while its net earnings were virtually unchanged at USD1.7 billion, the US-based defence contractor announced on 21 April.
Lockheed Martin is based in Bethesda, Maryland, in the US. (Lockheed Martin)
Lower helicopter volumes pushed down net sales in Lockheed Martin’s Rotary and Mission Systems segment, but that decline from last year’s first quarter was more than offset by robust sales gains in the company’s three other business segments: Aeronautics, Missiles and Fire Control, and Space.
While operating profit jumped 15% to USD672 million in Aeronautics due mainly to increased activity in the F-35 Joint Strike Fighter programme, it fell 16% to USD281 million in Space mainly due to lower risk retirement for the Advanced Extremely High Frequency communication satellite system and lower earnings from the company’s share of United Launch Alliance. The other two segments saw small declines in operating profit.
The company’s backlog remained at a record-high USD144 billion, almost double what it was six years ago.
“Overall, it was still a strong quarter for the business during uncertain and unique times,” said Kenneth Possenriede, Lockheed Martin executive vice president and chief financial officer.
The company said the coronavirus disease (Covid-19) had no “material impact” on its first-quarter financial results but could affect its future performance.
The “corporation is beginning to experience some issues in each of its business areas related to Covid-19, primarily in access to some locations and delays of supplier deliveries,” Lockheed Martin said. It added that “production and supply chain activities have recently slowed in the Aeronautics business area,” especially in the F-35 programme.
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