Lockheed Martin History

Lockheed Martin (NYSE: LMT) is an American global aerospace, defense,

secrit!, and ad"anced technolog! compan! #ith #orld#ide interests$ %t #as formed
b! the merger of Lockheed &orporation #ith Martin Marietta in March '(()$ %t is
head*artered in +ethesda, Mar!land, in the ,ashington Metropolitan Area$
Lockheed Martin emplo!s '-.,... people #orld#ide$ /obert 0$ Ste"ens is the
crrent &hairman and &hief E1ecti"e 2fficer$
Lockheed Martin is one of the #orld3s largest defense contractors4 %n 5..(,
6-7 of Lockheed Martin3s re"enes came from militar! sales$ %t recei"ed 6$'7 of the
fnds paid ot b! the 8entagon$
Lockheed Martin operates in for bsiness segments$ These comprise, #ith
respecti"e percentages of 5..( total net sales of 9-)$5 billion, Aeronatics (567),
Electronic S!stems (567), %nformation S!stems : ;lobal Soltions (567), and
Space S!stems ('(7)$ %n 5..( <S ;o"ernment contracts acconted for 9=>$- billion
(>)7), foreign go"ernment contracts 9)$> billion ('=7), and commercial and other
contracts 9.$( billion (57)$ %n both 5..( and 5..> the compan! topped the list of <S
?ederal &ontractors$
The compan! has recei"ed the &ollier Troph! si1 times$ Most recentl! (in
5..') for being part of de"eloping the @A=)B?A=)+ Lift?an 8roplsion S!stem, and
again in 5..C for leading the team that de"eloped the ?A55 /aptor fighter Det$
History
Merger talks bet#een Lockheed &orporation and Martin Marietta began in
March '((-, #ith the companies annoncing their 9'. billion planned merger on
Agst =., '((-$ The deal #as finaliEed on March '), '(() #hen the t#o
companies3 shareholders appro"ed the merger$ The segments of the t#o companies
not retained b! the ne# compan! formed the basis for the present LA=
&ommnications, a midAsiEe defense contractor in its o#n right$ Lockheed Martin
later spn off the materials compan! Martin Marietta Materials$
+oth companies contribted important prodcts to the ne# portfolio$ Lockheed
prodcts inclded the Trident missile, 8A= 2rion, ?A'C ?ighting ?alcon, ?A55 /aptor,
&A'=. Fercles, AA-A/ ?ightingha#k and the GS&SA= satellite$ Martin Marietta
prodcts inclded Titan rockets, Sandia National Laboratories (management contract
ac*ired in '((=), Space Shttle E1ternal Tank, Hiking ' and Hiking 5 landers, the
Transfer 2rbit Stage (nder sbcontract to 2rbital Sciences &orporation) and "arios
satellite models$
2n April 55, '((C, Lockheed Martin completed the ac*isition of Loral
&orporation3s defense electronics and s!stem integration bsinesses for 9($' billion,
the deal ha"ing been annonced in 0anar!$ The remainder of Loral became Loral
Space : &ommnications$
Lockheed Martin abandoned plans for a 9>$= billion merger #ith Northrop
;rmman on 0l! 'C, '((>, de to go"ernment concerns o"er the potential strength
of the ne# grop4 LockheedBNorthrop #old ha"e had control of 5)7 of the
Gepartment of Gefense3s procrement bdget$
Lockheed Martin pro"ided NASA #ith measrements in <S &stomar! force
nits #hen metric #as e1pected, reslting in the loss of the Mars &limate 2rbiter at a
cost of 9'5) million$ The cost for spacecraft de"elopment #as 9'(=$' million$
%n Ma! 5..', Lockheed Martin sold Lockheed Martin &ontrol S!stems to +AE
S!stems$ 2n No"ember 56, 5..., Lockheed completed the sale of its Aerospace
Electronic S!stems bsiness to +AE S!stems for 9'$C6 billion, a deal annonced in
0l! 5...$ This grop encompassed Sanders Associates, ?airchild S!stems, and
Lockheed Martin Space Electronics : &ommnications$
%n 5..', Lockheed Martin #on the contract to bild the ?A=) Lightning %%4 this
#as the largest fighter aircraft procrement proDect since the ?A'C, #ith an initial
order of =,... #orth some 95.. billion before e1port orders$
%n 5..', Lockheed Martin settled a nine !ear in"estigation condcted b!
NASA3s 2ffice of %nspector ;eneral #ith the assistance of the Gefense &ontract Adit
Agenc!$ The compan! paid the <nited States go"ernment 96$' million based on
allegations that its predecessor, Lockheed Engineering Science &orporation,
sbmitted false lease costs claims to NASA$
2n Ma! '5, 5..C, The ,ashington 8ost reported that #hen /obert Ste"ens
took control of Lockheed Martin in 5..-, he faced the dilemma that #ithin '. !ears
'..,... of the abot '=.,... Lockheed Martin emplo!ees I more than threeA
*arters I #old be retiring$
2n Agst =', 5..C, Lockheed Martin #on a 9=$( billion contract from NASA
to design and bild the &EH capsle, also kno#n as 2rion I the ne1t spacecraft for
hman flight I for the Ares % rocket in the &onstellation 8rogram$
2n Agst '=, 5..>, Lockheed Martin ac*ired the go"ernment bsiness nit
of Nantero, %nc$, a compan! that had de"eloped methods and processes for
incorporating carbon nanotbes in ne1tAgeneration electronic de"ices$ %n 5..(,
Lockheed Martin boght <nitech$
2n No"ember '>, 5.'., Lockheed Martin annonced that it #old be closing
its Eagan, MN location b! 5.'= in order to dri"e do#n costs and optimiEe capacit! at
their locations nation#ide$
%n 0anar! 5.'', Lockheed Martin agreed to pa! the <S ;o"ernment 95
million to settle allegations that the compan! sbmitted false claims on a <$S$
go"ernment contract for that amont$ The allegations came from a contract #ith the
Na"al 2ceanographic 2ffice MaDor Shared /esorce &enter in Mississippi$
2n Ma! 5>, 5.'' it #as reported that a c!berAattack sing pre"iosl! stolen
EM& files had broken throgh to sensiti"e materials at the contractor$ %t is nclear if
the Lockheed incident is the specific prompt #hereb! on 0ne ', 5.'', the ne#
<nited States militar! strateg!, makes e1plicit that a c!berattack is cass belli for a
traditional act of #ar$
/e"ene JincreaseK <S9 -)$>.= billion (5.'.)
2perating income Jincrease <S9K -$.(6 billion (5.'.)
8rofit JincreaseK <S9 5$(5C billion (5.'.)
Total assets JincreaseK <S9 =)$.C6 billion (5.'.)
Total e*it! JincreaseK <S9 =$6.> billion (5.'.)
Emplo!ees '5C,... (5.'')