Lockheed Martin Reports Strong 2Q Earnings, Announces Acquisition of Blackhawk Helicopter Maker
by July 20, 2015 10:11 am 113 views
Lockheed Martin reported robust second quarter earnings and easily beat Wall Street expectations as the defense contracting giant officially announced the $9 billion acquisition of Sikorsky Aircraft from United Technologies, company officials said Monday.
For the period ended June 30, the Bethesda-based defense contractor saw earnings in the second quarter of 2015 were $929 million, or $2.94 per share, compared to $889 million, or $2.76 per share, in the second quarter of 2014.
Revenues rose to $11.6 billion, up from $11.3 billion in the second quarter of 2014. Wall Street had expected the nation’s largest defense contractor to report quarterly earnings of $2.67 on revenue of $11 billion, according to Thomson Reuters. Cash from operations in the second quarter of 2015 was $1.3 billion, compared to $977 million in the second quarter of 2014.
“Solid operational and program execution in the second quarter allowed us to increase our financial guidance for profit and earnings per share,” Lockheed Martin chairman, president and CEO Marillyn Hewson said in a statement.
However, Lockheed said that net sales for the Missile Fire and Control (MFC) division, which includes the company’s industrial facility in Camden, decreased by $114 million, or 6%, from a year ago due to fewer deliveries of Patriot missiles and air defense systems. MFC’s operating profit for the second quarter of 2015 decreased $42 million, or 12%, compared to the same period in 2014, officials said.
“Separately, we announced two portfolio shaping initiatives today, the acquisition of Sikorsky Aircraft and a strategic review of our IT services business (and) our technical services business in MFC,” Hewson said. “We look forward to welcoming Sikorsky to the Lockheed Martin team and determining the best path to long-term growth for the business under review.”
The review of the company’s IT and technical services divisions represents about $6 billion in expected 2015 sales and 17,000 employees, Lockheed said.
Lockheed said it expects to fund the Sikorsky acquisition with a combination of new debt issuances and available cash. The acquisition is subject to customary closing conditions, including regulatory approval, and is expected to close in the fourth quarter of 2015 or the first quarter of 2016. The Sikorsky Aircraft division of United Technologies manufacturers the Blackhawk Helicopter
The defense giant is also engaged in the $30 billion Joint Light Tactical Vehicle (JLTV) bidding award, which is on schedule to be announced in the fiscal fourth quarter, which for the U.S. military concludes at the end of September.
Lockheed Martin’s industrial operations in Camden, along with Oshkosh Defense and AM General, are the three commercial contractors competing to win the JLTV program contract.