Lockheed Martin Corporation has reported first quarter 2020 net sales of $15.7 billion, net earnings of $1.7 billion and cash from operations of $2.3 billion, the company reported on Tuesday.
“As we confront the challenges introduced by the global pandemic, our corporation remains focused on providing vital national security solutions for our customers while maintaining a safe and healthy environment for our employees,” said Lockheed Martin chairman, president and CEO, and 2020 Wash100 Award recipient Marillyn Hewson.
The company noted that the COVID-19 outbreak did not have a material impact on the company’s operating results or business in the first quarter of 2020. Lockheed Martin has started to recognize challenges in each of its business areas related to COVID-19.
Lockheed Martin reported its primary challenge has been access to some locations and delays of supplier deliveries. The corporation will continue to update its 2020 guidance for net sales to report the current impacts of the virus within production and supply chain.
The corporation has reported an investment in the AMMROC joint venture with a carrying value of $435 million. Lockheed Martin noted that AMMROC’s current business is dependent on a single customer contract to provide maintenance, repair and overhaul (MRO) services for fixed and rotary wing military aircraft that was up for re-competition.
The corporation’s cash activities in the first quarter of 2020 have included paying cash dividends of $693 million, compared to $638 million in the first quarter of 2019 and repurchasing 1.7 million shares for $756 million.
The shares include $500 million paid pursuant to an accelerated share repurchase agreement (ASR), which will settle in the second quarter; compared to 1.0 million shares for $281 million in the first quarter of 2019. Lockheed Martin has made capital expenditures of $293 million, compared to $284 million in the first quarter of 2019.
Additionally, Lockheed Martin noted no net proceeds from or repayments of commercial paper, compared to making net repayments of $200 million in the first quarter of 2019. The corporation’s effective income tax rate was 15.4 percent in the first quarter of 2020, compared to 12.4 percent in the first quarter of 2019.
The rate for the first quarter of 2019 benefited from additional tax deductions of $65 million, recorded for 2018, based on proposed tax regulations released on March 4, 2019, which clarified that foreign military sales qualify for foreign derived intangible income treatment.
“I’m so proud of the work the dedicated men and women of Lockheed Martin are doing as part of our strong portfolio to deliver critical products and services for our customers and long-term value for our shareholders,” Hewson added.
About Lockheed Martin
Headquartered in Bethesda, Maryland, Lockheed Martin Corporation is a global security and aerospace company that employs approximately 110,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.