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Lockheed Martin Corporation: SWOT Analysis & Company Profile

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Business Review’s Lockheed Martin Corporation contains a company overview, key facts, locations and subsidiaries, news and events as well as a SWOT analysis of the company.

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									Lockheed Martin Corporation


Lockheed Martin Corporation: SWOT
Analysis & Company Profile

Reference code: BRDF0079CP10-Q2

Published: Dec 2010

Business Review
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United Kingdom
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813


Lockheed Martin Corporation - SWOT Profile                                          Page 1
Lockheed Martin Corporation


Lockheed Martin Corporation - Company Overview

Lockheed Martin Corporation (Lockheed Martin) is one of the leading security and information technology companies,
engaged in design, research, manufacture, integration and support of advanced technology systems, products and
services. It also offers a wide range of management, technical, engineering, scientific, logistic and information services. Its
products and services are used by domestic and international customers for defense, civil and commercial applications.
The company is the leading US government contractor with total awarded contracts valued at USD 38.4 billion in 2009. It
has its operations in 500 cities and 46 states across the US and 75 nations and territories worldwide. Lockheed Martin is
headquartered in Bethesda, Maryland, US.

Financial Performance

The company reported revenues of USD 45,189 million during the fiscal year ended December 2009. Its revenue grew at
a CAGR of 7.95% during the period 2007-2009 with a year on year growth of 5.75% over fiscal year 2008. During the
fiscal year 2009, its operating margin was 9.88% as against an operating margin of 12.01% during the fiscal year 2008.
Moreover, during the fiscal year 2009, the company’s net profit margin was 6.69% as against a net profit margin of 7.53%
during the fiscal year 2008.

Lockheed Martin Corporation - Key Facts

Lockheed Martin Corporation, Key Facts

                                  6801 Rockledge Drive,
                                  Bethesda, Maryland (MD),          Ticker Symbol, Stock          LMT (New York Stock
Corporate Address:
                                                                    Exchange                      Exchange)
                                  20817, United States

Telephone                         + 1 301 8976000                   No. of Employees              136,000

Fax                               + 1 301 8976919                   Financial Year End            December

URL                                 Revenue (in USD Million)      45,189.00

Industry                          Aerospace and Defense

                                  Australia, India, Japan, New Zealand, Republic of Korea, Singapore, Taiwan, Albania, Belgium,
                                  Bulgaria, Croatia, Czech Republic, Denmark, France, Germany, Italy, Netherlands, Norway, Poland,
                                  Portugal, Romania, Russian Federation, Slovakia, Spain, United Kingdom, Canada, United States,
                                  Brazil, Chile
Source: Annual Report, Company Website, Primary and Secondary Research


Lockheed Martin Corporation - SWOT Profile                                                                                Page 2
Lockheed Martin Corporation


Lockheed Martin Corporation - Business Description

Lockheed Martin Corporation (Lockheed Martin) is one of the leading defense contractors, with significant focus on US
Defense market. The company focuses on the research, design, development, manufacture, integration and sustainment
of advanced technology systems, products and services. It also provides IT services, systems integration, and training
services to the US government. It conducts its major portion of the business with the US Department of Defense and US
federal government agencies. Lockheed Martin operates through 1,000 facilities in domestic and international markets.
Lockheed Martin employs about 136,000 people.

The company performs its operations through four business segments, namely, Electronic Systems, Information Systems
& Global Services (IS&GS), Aeronautics and Space Systems.

Through Electronic Systems segment, the company undertakes the management of complex programs; and engages in
design, development, and integration of hardware and software solutions to ensure the mission readiness of armed forces
and government agencies across the world. Major business lines under the Electronic Systems segment include Maritime
Systems & Sensors (MS2), Missiles & Fire Control (M&FC), and Platform and Training (P&T). MS2 provides ship systems
integration; surfaceship and submarine combat systems; sea based missile defense systems; missile-launching systems;
and aerostat surveillance systems. Its ship systems integration capabilities across shore-based command centers include
communications, command, control, computers, surveillance, intelligence and reconnaissance (C4ISR) capability. It also
offers solutions such as sensors, port traffic management systems, tactical avionics, technologies related to renewable
energy systems; and supply-chain management programs and systems. The company’s core MS2 programs include the
Aegis Weapon System (AWS) and Littoral Combat Ship (LCS). AWS is a fleet defense system which is one of the sea-
based elements of the US missile defense system, whereas LCS is a surface combatant designed to operate in shallow

M&FC business line develops and produces land-based, air and theater missile-defense systems, fire-control and sensor
systems, electro-optical systems and tactical battlefield missiles. The business line also offers sustainment and logistic
services for fire control and tactical missile programs. The company’s core M&FC programs include Terminal High Altitude
Area Defense (THAAD) system and the PAC-3 missile. THAAD system is a transportable defensive missile system that
has capabilities of engaging targets within as well as outside of atmosphere, while PAC-3 missile is an advanced
defensive missile designed for intercepting incoming airborne threats. P&T business line focuses on integration of
mission-critical applications for fixed- and rotary-wing aircraft, including logistics and sustainment; and simulation, training,
and support services. It also develops and integrates postal automation and material handling systems, and tactical
wheeled vehicles. P&T business line of the company also operates the Sandia National Laboratories for the US
Department of Energy.

During the fiscal year 2009, the Electronic Systems segment of the company contributed 27% towards the total revenues
of the company, generating USD 12,204 million, an increase of 5.03% over the previous year. Further, the Electronic
Systems segment recorded 39% of the total revenues each from the MS2 and M&FC business lines, and 22% from P&T.
Further, at the end of fiscal year 2009, Lockheed Martin recorded USD 21,900 million of backlogs from the Electronic
Systems segment, representing 28.07% of the company’s total backlog.

The company’s IS&GS segment is focused on providing federal services, IT solutions and advanced technology expertise
across a wide range of applications and customer base. The segment offers support services across the life-cycle in the
areas of software and systems engineering in air, space and ground systems. It also offers logistics, peacekeeping,
mission operation support and nation-building services for several defense and civil government agencies in domestic and
international market. Lockheed Martin mainly serves indefinite delivery, indefinite quantity (IDIQ) and task order types of
contracts. Its major business lines within IS&GS segment include Civil, Defense and Intelligence. Civil business line
supports specific requirement in human capital, financial services, data protection and sharing, energy and environment,
security, health, human exploration, biometrics, and transportation within the US. The core programs within the civil
business line comprise the Decennial Response Integration System (DRIS 2010) contract and En-Route Automation
Modernization (ERAM). DRIS 2010 contract will offer a multi-channel system for the 2010 US Census data, while the
ERAM program is designed to replace infrastructure of the Federal Aviation Administration with advanced automation
environment, including new functions and capabilities.

The IS&GS segment of Lockheed Martin, through its Defense business line, offers complex mission solutions to defense,
National Oceanic and Atmospheric Administration (NOAA), National Aeronautics and Space Administration (NASA) and
international customers. These solutions deliver capabilities such as communications and command, and control
capabilities; and net-enabled situation awareness. Some of the core programs within the business line include the Joint
Tactical Radio System contract, offering software programmable tactical radios with data, voice and video
communications to Navy, Army and Air Force platforms. It also includes a Command and Control; Battle Management;
and Communications contract, which is a program aimed at increasing the integration of ballistic missile defense system.
The company’s Intelligence business line designs and integrates complex, global systems, supporting customers to
gather, analyze and securely distribute critical intelligence data. The core programs within intelligence business line
comprise GeoScout and Sentinel IT infrastructure programs of FBI. GeoScout is focused on development of advanced
intelligence processing.

During the fiscal year 2009, the IS&GS segment of the company contributed 27% towards the total revenues of the
company, generating USD 12,130 million, an increase of 4.47% over the previous year. Further, the IS&GS segment
recorded 37% of the total revenues from Defense business line, followed by 36% from Civil and 27% from Intelligence.


Lockheed Martin Corporation - SWOT Profile                                                                              Page 3
Lockheed Martin Corporation


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