Transportation Industry

Company Watch - Lockheed Martin

AirGuide Business, May 5, 2008

May 5, 2008

Defense authorization bill includes funding for 20 F-22s. Funding for 20 more F-22 Raptors is included in a defense authorization bill adopted by the Senate Armed Services Committee. However, the bill does not recommend funding any additional C-17 cargo lifters. The $542.5 billion bill also fully funds a request for the Army's Future Combat Systems modernization program. May 2, 2008

Lockheed Martin on Monday bid on a contract to supply the Norwegian government with 48 combat aircraft. Saab is also competing for the contract. The company hopes Norway buys its F-35 Joint Strike Fighter to replace its aging fleet of F-16s. Apr 30, 2008

Lockheed buys logistics, IT firm. Lockheed Martin said it will acquire logistics and information technology firm Eagle Group. Terms of the transaction were not disclosed. Lockheed said the purchase will boost its ability to outsource logistics and business processing as well as strengthen its ties with several key Army customers. Apr 29, 2008

Defense contractor Lockheed Martin Corp. said yesterday that its first-quarter earnings rose 6 percent as higher sales of space equipment, missiles and other combat tools offset a dip in sales of fighter jets. Lockheed, the world's largest defense supplier, said it earned $730 million, or $1.75 per share, up from $690 million, or $1.60 per share, in the first quarter of 2007. Revenue for the period increased to $9.98 billion from $9.27 billion. Analysts surveyed by Thomson Financial expected Lockheed to make $1.63 per share on sales of $9.69 billion. Lockheed's first quarter included an extra week, which some analysts said likely contributed to the higher earnings and results above the Wall Street consensus. The Bethesda-based company also raised its outlook for 2008 by 10 cents, saying it expects to earn between $7.15 billion and $7.35 billion for the year on revenue of $41.8 billion to $42.8 billion. Much of the improvement is expected to come in the company's space division, including its new joint rocket launch business with Chicago-based Boeing Co. Apr 28, 2008

Lockheed Martin CEO Robert Stevens said he does not believe the next administration will scale back defense spending. In a Q-and-A with the Fort Worth Star-Telegram, Stevens said demands on the global-security environment will continue to require investment. Stevens also said Lockheed's businesses continue to adapt to meet new security threats. "Some parts of our business are adapting to the short things and some parts of our business are thinking 50 years from now. If you want to challenge yourself intellectually, tell me what you think the world will look like 50 years from now," Stevens said. Apr 28, 2008

Navy combat ship runs over cost, some experts point to design problems. The cost of building the new class of Navy high-speed combat vessels has soared to more than double original estimates. The Navy suspended the program last year. Some observers say the project was flawed because the warship was based on the design of a commercial ferry. Lockheed Martin is building one ship, and General Dynamics is working on a prototype. Apr 28, 2008

Government investigators concluded that the Pentagon did not properly safeguard classified aviation and weapons technology at facilities owned by BAE Systems for at least a two-year period. In a report made public Thursday, the Pentagon's Inspector General found that the Defense Security Service did not do enough to prevent unauthorized access to sensitive Joint Strike Fighter program technology at BAE facilities and computers. The Defense Security Service is an arm of the Pentagon that works with government contractors to protect classified information. The report did not cite any actual breaches of information. BAE, the largest foreign defense contractor serving the U.S. military, is a major subcontractor on the F-35 Joint Strike Fighter. Lockheed Martin Corp. of Bethesda, Md., is the lead contractor on the program, one of the most expensive in Pentagon history. The Pentagon recently put the cost of the Joint Strike Fighter program at $298.8 billion. The military plans to purchase 2,443 of the fighter jets for the Air Force, Navy and Marines. The Inspector General report was released in March but made public on Thursday in response to requests under the Freedom of Information Act, including one by the Project on Government Oversight AP reported. May 1, 2008

Six companies bid for Indian fighter jet contract. Lockheed Martin and Boeing are among the six companies bidding for a contract to supply India with fighter jets. The contract for 126 planes could be worth up to $10 billion. Indian officials will select two or three finalists before they make a final decision. Apr 29, 2008

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