Lockheed Martin’s Space segment saw another quarter of increased sales, as the company reported $3 billion in net Space sales in the first quarter (Q1) of 2020. This was a 3% increase compared to the same time period in 2020.
The company attributed the increase to higher net sales of approximately $60 million for the Atomic Weapons Establishment (AWE) program due to higher volume; and about $20 million for commercial civil space programs due to higher volume primarily in space transportation programs.
The Space segment’s operating profit, however, decreased $54 million or 19% in Q1, compared to the same period in 2020. The company attributed the decrease primarily to lower risk retirements in the Advanced Extremely High Frequency (AEHF) program, and about $35 million due to lower equity earnings in United Launch Alliance (ULA).
Total equity losses primarily from ULA in Space’s operating profit were approximately $5 million loss, a 2% decrease to Space’s operating profit in the first quarter of 2021. This compares to earnings of $30 million, or 11%, in the first quarter of 2020.
Space backlog is at $28.8 billion, an increase of $3.6 billion from the previous quarter.
This comes after a strong 2020 for Lockheed Martin, despite the COVID-19 pandemic. In 2002, Lockheed’s Space segment had $11.9 billion in net sales, a 9% increase over 2019.
Overall, Lockheed Martin saw an increase in net sales in the first quarter 2021, reporting net sales of $16.3 billion, compared to $15.7 billion in the first quarter of 2020. Net earnings in the first quarter were $1.8 billion, or $6.56 per share, compared to $1.7 billion, or $6.08 per share, in the first quarter of 2020. Each segment saw an increase of sales in Q1.
In addition, Lockheed Martin raised its 2021 guidance. The new guidance forecasts net sales of between $67.3 billion and $68.7 billion. This is up from the January 2021 outlook of between $67.1 billion and $68.5 billion.
“Our strong financial results position us to continue advancing 21st century innovations that will deter the threats of the future, while remaining a trusted partner for customers who depend on our existing platforms and services today,” commented Lockheed Martin Chairman, President, and CEO James Taiclet. “As we look ahead to a new and better normal, our workforce is focused on growth, ready to strengthen our foundation well into the future.”
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